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Why Costa Rica Attracts Foreign Investment: Key Factors

June 25, 2025
Borrow, Borrowing, Costa Rica, Credit, Foreclosure

Costa Rica has emerged as a premier destination for foreign direct investment in Latin America, attracting billions of dollars across multiple sectors, including manufacturing, technology, and life sciences.

The country’s investment climate has been experiencing remarkable growth, with foreign direct investment (FDI) increasing by a record 24% in 2023 and 59 new multinational projects launching in the past year.

We will explore the key drivers behind Costa Rica’s success, examining the structural advantages and specific policies that have contributed to this growth, making it an ideal business hub in Central America.

Understanding these drivers is essential for potential investors considering Costa Rica as a destination for business expansion or property investment.

Costa Rica’s Strategic Advantages for Foreign Investors

With its exceptional workforce and favorable business climate, Costa Rica stands out as an ideal location for international investment. The country’s appeal to foreign investors can be attributed to several key factors that contribute to its success as a business hub.

Political and Economic Stability

Costa Rica boasts a stable political environment and a robust economy, making it an attractive destination for foreign investment. The country’s commitment to democracy and its long-standing political stability provide a secure backdrop for businesses to operate. Additionally, Costa Rica’s economy has shown consistent growth, further enhancing its appeal to international investors.

Strategic Location and Global Connectivity

Costa Rica’s strategic location in Central America allows it to serve as a gateway to the Latin American market. The country’s proximity to major shipping lanes and its well-developed infrastructure, including a modern international airport and efficient logistics services, facilitate global connectivity. This enables companies to efficiently manage their supply chains and reach customers across the region and beyond.

Highly Educated Workforce

One of the fundamental pillars of Costa Rica’s success is its highly qualified workforce. Over 60% of workers hold a university degree, providing companies with access to highly specialized talent ready to tackle the challenges of the global market. This talent pool is particularly valuable for companies in sectors such as life sciences, advanced manufacturing, and technology services, where specific technical skills are required.

The highly educated workforce, combined with the country’s strong educational system and fluency in English, makes Costa Rica an attractive location for foreign investors seeking to leverage local talent to drive their global operations.

Factors that have made Costa Rica an attractive location for foreign investment

Costa Rica has emerged as a prime destination for foreign investors due to its multifaceted advantages. We explore the key factors that contribute to its appeal.

Commitment to Sustainability and Renewable Energy

Costa Rica is renowned for its commitment to sustainability and renewable energy. The country’s focus on environmental conservation and sustainable practices not only enhances its appeal to eco-conscious investors but also ensures a healthier and more productive workforce. With a significant portion of its energy coming from renewable sources, Costa Rica sets a positive example for businesses looking to reduce their carbon footprint.

Free Trade Zones and Tax Incentives

Costa Rica offers attractive incentives for foreign investors, including free trade zones and tax benefits. These zones provide companies with streamlined customs procedures, exemptions from certain taxes, and other benefits that simplify doing business in the country. Such incentives are crucial in attracting foreign investment and promoting export-oriented industries.

Government Support and Business-Friendly Policies

The Costa Rican government actively supports foreign investors through agencies like PROCOMER, which serves as a one-stop shop for navigating the investment process. Government policies focus on factors that matter most to international investors, including intellectual property protection, transparent regulations, and efficient administrative processes. This support highlights Costa Rica’s commitment to creating a business-friendly environment.

Success Stories: Global Companies Thriving in Costa Rica

Costa Rica’s unique blend of economic stability and talent pool has attracted numerous multinational corporations. The success stories of several global companies exemplify the country’s ability to attract and retain foreign investment.

Intel’s Semiconductor Manufacturing Hub

Intel, a leader in the semiconductor industry, has established a significant manufacturing hub in Costa Rica. This operation not only showcases the country’s capability to support complex manufacturing processes but also highlights its role in the global technology supply chain. Intel’s presence has contributed to the development of a highly skilled workforce in the region.

Boston Scientific’s Medical Device Operations

Boston Scientific, a renowned medical device company, has chosen Costa Rica as a key location for its operations. The country’s highly educated workforce and favorable business environment have enabled Boston Scientific to thrive, contributing to advancements in medical technology.

Johnson & Johnson MedTech’s Strategic Expansion

Johnson & Johnson MedTech has also found Costa Rica to be an ideal location for its strategic expansion. The company’s operations in the country benefit from Costa Rica’s talent pool and its commitment to innovation, supporting Johnson & Johnson MedTech’s mission to improve healthcare outcomes.

Equifax and Technology Services Growth

Equifax, a leading data, analytics, and technology firm, has a long history in Costa Rica, dating back to the mid-1990s. According to Jairo Quiros, Senior Vice President Global Business Services & Engineering Centers at Equifax, “Our (Costa Rican) talent has been proven, not only (in terms of their) technical capacity but also (with reference to) key soft skills such as customer and business focus, teamwork, and a creative mentality towards problem-solving.” Equifax has leveraged Costa Rica’s technical talent to establish sophisticated operations, including their Center of Excellence for Automation, supporting the company’s global security and technology initiatives.

The growth of these global companies in Costa Rica demonstrates the country’s appeal as a destination for foreign investment. With its highly skilledworkforce, commitment to sustainability, and favorable business environment, Costa Rica continues to attract top technology and services companies, positioning itself as a hub for high-value technology services beyond manufacturing.

Financing Options for Foreign Investors in Costa Rica

As a hub for foreign investment, Costa Rica presents various financing options tailored to international investors’ needs. Foreign investors can leverage these options to support their ventures, from real estate investments to large-scale industrial projects.

GAP Equity Loans: Leveraging Costa Rican Property

GAP Equity Loans offers a unique solution for foreign investors by providing Costa Rica home equity loans. This financing option allows investors to leverage their Costa Rican property to access significant funds, facilitating further investment and business growth.

Benefits of Using Local Financing for Investment Projects

Utilizing local financing options in Costa Rica can provide foreign investors with strategic advantages, including access to funding specifically designed for the local market conditions. Local financing solutions offer valuable insights into Costa Rica’s regulatory environment, helping investors navigate the unique aspects of doing business in this destination. By combining international capital with local financing, investors can optimize their capital structure and potentially improve project economics.

Conclusion

Costa Rica stands out as a prime location for foreign direct investment, driven by its strategic advantages and business-friendly environment. The country’s commitment to sustainability and highly educated workforce make it an attractive destination for companies seeking to expand their operations.

For investors considering Costa Rica, practical financing solutions like GAP Equity Loans can leverage existing property investments to fund new opportunities. As nearshoring trends continue to reshape global supply chains, Costa Rica is well-positioned to capture continued investment from the United States and beyond.

Article by Glenn Tellier (Founder of CRIE and Grupo Gap)