Why Invest In Costa Rica?

Longstanding Political Stability and Institutional Strength: Costa Rica’s strong democratic institutions, with regular free elections and a history of peaceful transitions of power, ensure an investment environment that is both stable and transparent. The abolition of the military in 1948 marked the beginning of an era of political calm and high social investments, particularly in education and healthcare. Costa Rica has one of the most stable political systems in Latin America, consistently ranking at the top of indices for governance, human rights, and freedom of the press, ensuring a low-risk environment for investors looking for long-term stability.
Pro-Business Policies and Tax Incentives: The Costa Rican government continues to foster a highly business-friendly environment, offering numerous incentives to attract foreign direct investment (FDI). In addition to the well-known Free Trade Zones (FTZ), the country provides specific incentives for sectors such as renewable energy, high-tech manufacturing, tourism, and agriculture. Recent reforms have simplified business registration processes, making it easier and quicker for foreign investors to establish companies. Furthermore, Costa Rica’s tax regime includes favorable provisions for international businesses, including exemptions on value-added tax (VAT) and income tax reductions for companies engaged in R&D, innovation, or technology transfer.
Booming Free Trade Zones (FTZ) and Industrial Parks: Beyond tax incentives, Costa Rica's Free Trade Zones have developed into highly competitive and modern industrial clusters, attracting a wide range of multinational corporations. These zones are especially conducive for companies involved in advanced manufacturing, medical devices, electronics, pharmaceuticals, and logistics. The infrastructure within FTZs is highly developed, providing state-of-the-art facilities, reliable utilities, and seamless export-import processes. Industrial parks located within FTZs, like Coyol Free Zone, are internationally recognized for hosting some of the world's top medical device manufacturers, creating synergies for new companies to leverage existing supply chains.
Strategic Geographic Location for Trade and Distribution: Costa Rica's position in the heart of the Americas offers a geographical advantage for businesses aiming to reach both North and South American markets efficiently. It provides rapid access to the United States, Mexico, Canada, and the broader Latin American region. The government has invested heavily in port and road infrastructure to enhance the country’s logistics capabilities. Its two key international ports, Puerto Limón (Caribbean) and Puerto Caldera (Pacific), are major hubs for global shipping lines, connecting Costa Rica directly to the Atlantic and Pacific trade routes.
Additionally, the expansion of Panama's Canal has further enhanced Costa Rica's role as a logistics hub for goods transiting between Asia and the Americas. The country is also home to several international airports, including Juan Santamaría International Airport (SJO) near the capital, which serves as a regional center for air cargo.
Diversified Economy Built for Resilience: Costa Rica’s diversified economy makes it an attractive investment destination because it is not reliant on any single sector. The country's traditional agricultural strengths—bananas, pineapples, and coffee—continue to thrive, but it has also shifted focus toward high-tech manufacturing, services, and tourism. The medical device sector has grown into a multi-billion dollar industry, with Costa Rica now being the second-largest exporter of medical devices in Latin America. The services sector, including shared services, IT services, and research & development, has also seen significant growth, with many multinational corporations choosing to base their Latin American operations in Costa Rica.
Furthermore, Costa Rica’s resilient economy weathered global downturns better than many of its regional peers, maintaining relatively low inflation and unemployment rates, thanks to its sectoral diversity and sound economic policies.
Well-Educated Workforce with STEM Expertise: Costa Rica continues to invest heavily in education, and this is particularly reflected in the skilled labor force available for high-value sectors. The country’s emphasis on Science, Technology, Engineering, and Mathematics (STEM) fields produces a workforce that is well-prepared for industries such as software development, biotechnology, medical device manufacturing, and advanced manufacturing. Costa Rica is also known for its multilingual workforce, with many professionals fluent in English, Spanish, and other languages, which is crucial for companies operating in global markets.
Additionally, various government-backed training initiatives, such as the National Learning Institute (INA), provide ongoing education and professional development, ensuring that Costa Rica’s workforce remains competitive in the global economy.
Leadership in Sustainability and Green Economy: Costa Rica’s commitment to sustainability is globally recognized, making it a leader in renewable energy and environmental protection. Over 98% of its electricity is generated from renewable sources such as hydroelectric, wind, solar, and geothermal energy. This long-term dedication to green energy ensures both energy stability and cost-efficiency for companies operating within the country.
Costa Rica is also committed to achieving net-zero carbon emissions by 2050, setting an example for sustainable development globally. These efforts have attracted environmentally conscious investors, particularly in sectors like renewable energy, green technologies, sustainable agriculture, and eco-tourism. The country has also developed robust markets for organic and sustainably produced agricultural products, opening the door for investors in these fields.
Rapid Growth in the Medical Devices and Life Sciences Sectors: Costa Rica has become a powerhouse for the medical devices and life sciences industries. The country is now home to over 70 medical device companies, including global leaders such as Boston Scientific, Medtronic, and Baxter. These companies benefit from Costa Rica’s skilled labor force, excellent infrastructure, and advantageous trade agreements.
The life sciences sector continues to expand, encompassing biotechnology, pharmaceuticals, and clinical research organizations (CROs). Costa Rica offers a cost-effective location for R&D, clinical trials, and the manufacture of complex medical devices, presenting significant opportunities for further investment in this rapidly growing field.
Investment Opportunities in Tourism and Hospitality: Costa Rica’s tourism sector is world-renowned, and the country has been at the forefront of eco-tourism for decades. Its impressive natural beauty—ranging from pristine beaches to lush rainforests—has made it a top destination for tourists interested in outdoor adventure, wellness retreats, and environmental conservation. Tourism contributes significantly to Costa Rica's GDP, and there are numerous investment opportunities in luxury eco-lodges, adventure tourism, wellness resorts, and real estate developments aimed at the growing number of retirees and expatriates.
The government actively promotes sustainable tourism, providing incentives for eco-friendly projects. There are also opportunities for investors looking to tap into the expanding market for sustainable real estate and hospitality projects.