Costa Rica’s Success Story: From Agriculture to High-Tech
Costa Rica’s Success Story: From Agriculture to High-Tech
A Strategic Gateway to the Americas
Costa Rica is globally recognized for its rich biodiversity, positioning it as a premier destination for nature and adventure tourism. Historically, its economy was driven by agricultural exports such as coffee, bananas, and pineapples.Today, however, Costa Rica tells a very different story. While its natural appeal remains a key asset, the country has undergone a profound economic transformation. Through deliberate public policy and strong public-private collaboration, Costa Rica has emerged as a leading high-tech hub for medical devices, advanced manufacturing, and high-value services.
This transformation has not gone unnoticed. Costa Rica is now home to hundreds of multinational companies from North America, Europe, and Asia. For investors, this is more than a success story—it represents a scalable and strategic platform for operations in the region.
A Proven Model of Transformation
Costa Rica’s shift from traditional exports (beef, coffee, sugar, and bananas) to high-tech manufacturing and value-added services was the result of a long-term strategic vision. At the core of this transformation lies the Free Trade Zone (FTZ) Regime, which has become a cornerstone of the country’s economic development.The impact of the FTZ regime is both measurable and significant. In 2024 alone, it contributed US$13.9 billion to the economy—approximately 15% of Costa Rica’s GDP.
The regime also serves as a powerful driver of foreign direct investment. In 2024, 74% of total FDI inflows entered through the FTZ regime, reflecting strong investor confidence in its stability and benefits.
Costa Rica’s export composition has also evolved substantially. By 2025, exports from FTZ companies reached US$18.97 billion, representing a 27% increase compared to previous years. Over the past five years, FTZ exports have consistently accounted for an average of 66% of total goods exports. These exports are concentrated in high-value sectors such as precision medical devices and electronic components.
Equally important are the broader economic spillovers. FTZ companies currently generate over 265,000 high-quality jobs, contributing to the development of a highly skilled, bilingual workforce capable of operating in global and multicultural environments.
Efficiency and Local Integration
Costa Rica offers more than tax incentives—it provides a mature and reliable business ecosystem.Its workforce is not only highly educated but also experienced in global operations and multicultural environments, enabling companies to integrate seamlessly into international value chains.
In addition, the country has developed a strong and reliable local supplier network that meets the quality standards required by multinational companies.
In 2024, FTZ companies spent more than US$6 billion on local procurement, demonstrating a high level of integration with the domestic economy. This reflects the presence of a sophisticated and capable network of local providers ready to support complex operations.
Why Costa Rica?
Costa Rica is a leading nearshoring destination for North American companies, offering reduced supply chain complexity, lower logistics costs, and alignment in time zones.For European and Asian companies, Costa Rica serves as a strategic bridge to the Americas, providing preferential access to key regional and global markets.
The sustained growth of the FTZ regime further reinforces this value proposition. Since 1990, the number of companies operating under the regime has increased from 56 to 626 in 2024—clear evidence of long-term stability and investor confidence.
Your Partner on the Ground
Entering a new market involves navigating regulatory complexity and information gaps. At BDO, we act as your strategic partner to ensure a smooth and efficient market entry.Leveraging our local expertise and strong relationships with key FDI stakeholders, we help anticipate challenges, reduce uncertainty, and mitigate risks proactively.
Our team supports you throughout the entire investment lifecycle:
- Before: Legal structuring, market entry strategy, site selection, and initial advisory support.
- During: FTZ application process, recruitment, tax compliance, and operational setup.
- After: Ongoing support in audit, payroll, tax, and regulatory compliance.
Ready to establish your operations in the heart of the Americas?
Let BDO Costa Rica guide your expansion into one of the region’s most dynamic and reliable investment destinations. Contact us today.Note: All data is sourced from official institutions, including PROCOMER and the Central Bank of Costa Rica.