Costa Rica, famous for its lush rainforests, stunning beaches, and year-round appeal to surfers, is also emerging as a vibrant hub for global industries such as manufacturing, life sciences, and technology. Known for its pioneering renewable energy efforts, the country is now drawing billions of dollars in foreign investment, with these sectors expanding at an unprecedented rate.
Why Costa Rica is Emerging as a Top Choice for Multinational Companies
Why Costa Rica is Emerging as a Top Choice for Multinational Companies
Costa Rica: A Strategic Hub for International Growth
Thanks to its stable economy, democratic system, highly educated workforce, and an impressive 98% of its electricity coming from renewable sources—like hydropower, wind, geothermal, and solar energy over the past five years—Costa Rica has become an attractive destination for foreign investors looking to establish a foothold near the U.S.
While the U.S. accounts for more than 70% of Costa Rica’s direct investment, investors from regions like Europe are also flocking to the country. In the last year, Costa Rica has witnessed the launch of 59 multinational projects across sectors such as manufacturing and technology, spurred by foreign investment. From medical devices to silicon chips, Costa Rica’s foreign direct investment (FDI) saw a remarkable 24% growth in 2023.
A Supportive Ecosystem for Foreign Investors
Often referred to as the “Silicon Valley” of Central America, Costa Rica, with its population of 5.2 million, has become a magnet for major multinationals and digital nomads alike.
The country offers a range of incentives to attract and nurture foreign direct investment, particularly through its Free Trade Zones (FTZs) program. FTZs, which include manufacturing and service parks, allow multinationals to operate with tax breaks and customs advantages aimed at encouraging foreign investment and export activities. Companies within FTZs benefit from exemptions on import/export duties, lower income taxes, and streamlined customs processes.
Innovation, Sustainability, and Investment
Costa Rica is building a robust ecosystem for investment, powered by its renewable energy infrastructure, to encourage business growth. According to Acosta, the country’s focus on innovation is a key draw for businesses looking for new ways to integrate decarbonization strategies. In recognition of its efforts, Costa Rica received the 2019 Champions of the Earth award from the United Nations Environment Programme for its commitment to decarbonization.
This comprehensive approach to sustainability positions Costa Rica as a prime location for businesses looking to adopt cutting-edge energy efficiency solutions while benefiting from a stable environment that prioritizes renewable energy practices.
