Over the past four decades, Costa Rica has evolved from a small, agriculture-based economy into one of Latin America’s most stable and diversified investment destinations. Today, the country stands out not only for its political stability and environmental leadership but also for its growing capacity to attract foreign direct investment (FDI). Historically, most of this capital flowed to manufacturing and export-oriented industries within free-trade zones. Yet a remarkable transformation has occurred in recent years: tourism and real estate have begun to claim a much larger share of FDI, reflecting Costa Rica’s emergence as both a global tourism powerhouse and a preferred location for foreign retirees, digital nomads, and lifestyle investors.
In 2024, Costa Rica’s total FDI reached approximately US $4.32 billion, according to data from PROCOMER, marking one of the highest figures in the country’s history. Tourism alone represented around 14 percent of that total—equivalent to roughly US $600 million—while real-estate investment accounted for nearly 7 percent. These are no longer peripheral sectors; together they now rival manufacturing and services in their strategic importance. The implications of this shift extend far beyond short-term economic growth: they redefine how the world views Costa Rica, not merely as a vacation spot but as a long-term investment platform tied to global trends in sustainability, wellness, and remote living.
Historical context and structural foundations
The trajectory of foreign investment in Costa Rica has been shaped by several enduring features. First, its democracy and institutional continuity have offered investors a rare sense of predictability in Latin America. Second, since the 1980s the government has promoted openness to trade and investment, creating strong linkages between domestic industries and international markets. Third, the country’s human capital—high literacy rates, bilingual workforce, and social stability—has consistently attracted multinational firms in sectors such as medical devices, business services, and technology.
Tourism’s rise as a pillar of foreign investment followed naturally from these advantages. By the mid-2010s, annual visitor arrivals had exceeded 2.5 million, generating over US $2.6 billion in foreign exchange. The global rise of eco-tourism and experiential travel coincided perfectly with Costa Rica’s “pura vida” identity, a brand built on biodiversity and sustainability rather than mass tourism. When global tourism recovered after the pandemic, Costa Rica emerged stronger than ever: visitor arrivals surged again in 2023–2024, with the Guanacaste airport alone recording a 14 percent year-on-year increase in international passengers. Such growth directly fuels FDI in hotels, resorts, and supporting infrastructure—from marinas and wellness retreats to mixed-use developments that blend hospitality with residential components.
Real-estate as a magnet for lifestyle capital
Parallel to tourism, real-estate investment has matured into a reliable engine of foreign capital inflows. Between 2023 and 2024, residential property prices increased by nearly eight percent nationwide, with the most notable appreciation occurring in Guanacaste and the Central Valley. Guanacaste—home to destinations like Tamarindo, Papagayo, and Nosara—remains the most expensive and internationally visible region, attracting high-end buyers seeking beachfront residences or branded resort properties. Meanwhile, the Central Valley (San José, Escazú, Heredia, Santa Ana) appeals to expatriates and professionals drawn by its urban amenities, mild climate, and proximity to international schools and hospitals.
Costa Rica’s legal framework has further supported this trend. The 2021 reform of the “Investor and Retiree Law” lowered the minimum investment threshold for foreign residency from US $200,000 to US $150,000, allowing retirees and investors to obtain residence more easily and enjoy tax incentives on imported goods and pensions. Combined with the newer “Digital Nomad Visa,” which grants tax-free status on foreign income for remote workers, these policies have expanded the market for long-stay rentals, serviced apartments, and co-living concepts that blend hospitality and real estate. In other words, FDI in property is no longer speculative—it is now part of a structural migration of global professionals and retirees toward quality-of-life destinations.
Quantitative outlook to 2045
If current trends persist, the outlook for the next two decades is highly favorable. Assuming a moderate annual FDI growth rate of around three percent, total inflows could reach approximately US $5.2 billion by 2030 and close to US $7.8 billion by 2045. Under a more optimistic scenario—four percent annual growth—Costa Rica’s FDI could surpass US $9 billion before mid-century.
Within that total, tourism is projected to grow from its current 14 percent share to roughly 18 percent by 2045, equating to about US $1.4 billion annually in sector-specific investment. Real-estate FDI is expected to increase from seven to about ten percent, or roughly US $800 million per year by the same horizon. These figures may appear ambitious, yet they are consistent with the strong pipeline of tourism and residential projects already under development along the Pacific coast and in the Central Valley.
The quantitative story also carries a qualitative one: the capital flowing into Costa Rica is increasingly diversified, with investors from North America, Europe, and even Asia seeking exposure to sustainable, asset-backed projects. Unlike speculative inflows of the past, this capital is tied to tangible assets—land, resorts, and residential communities—offering long-term value and dollar-denominated returns.
Regional distribution and competitive dynamics
Guanacaste will likely continue to dominate tourism-related investment due to its coastal allure, improved connectivity through the Liberia International Airport, and government focus on sustainable infrastructure. The Central Valley will remain the core for high-end residential developments and urban hospitality projects, particularly those targeting business travelers and long-stay residents. The Central and Southern Pacific regions (including Manuel Antonio, Dominical, and the Osa Peninsula) are poised for niche growth in eco-luxury and adventure tourism, while the Caribbean coast, long underdeveloped, could become the next frontier for affordable, community-based projects.
Competition will, however, intensify. As foreign capital accelerates, developers and hotel owners will need to differentiate through authenticity, environmental performance, and integration with local communities. Investors are no longer satisfied with generic resorts—they seek properties aligned with Costa Rica’s national narrative of conservation and social responsibility.
The role of sustainability and ESG
Costa Rica’s comparative advantage is inseparable from its environmental brand. Over 25 percent of the national territory is under some form of environmental protection, and the country has achieved near-universal renewable energy generation. For FDI in tourism and real estate, this sustainability framework acts both as a magnet and as a quality filter.
Institutional investors—particularly those from Europe and North America—now demand verifiable ESG (Environmental, Social, and Governance) credentials. Projects that demonstrate energy efficiency, low-impact design, and community inclusion secure financing more easily and command higher valuations. In practice, a sustainable hotel or residential project can reduce operating costs by 15–25 percent while boosting occupancy and brand appeal. For Costa Rica, maintaining strict environmental standards is therefore not a constraint but a strategic asset that strengthens long-term competitiveness.
Opportunities and strategic implications for investors
For international investors, the confluence of tourism growth, policy incentives, and sustainable branding positions Costa Rica as a model destination for long-term, low-risk hospitality and residential investment. Boutique hotels, eco-resorts, wellness retreats, and branded residential projects represent the leading edge of opportunity. Developers can also explore hybrid formats that combine resort operations with fractional ownership or condominium sales, providing both cash flow and capital appreciation.
Hotel owners already operating in Costa Rica can take advantage of this capital influx by professionalizing their investor materials. A concise investment teaser—including occupancy, ADR, RevPAR, and financial snapshots—followed by a secure data room with audited statements and property documentation, can dramatically accelerate investor interest. Likewise, positioning a property under a recognized brand or sustainable certification can improve valuation multiples and exit potential.
Risks and resilience
No investment outlook is without risks. Costa Rica must balance growth with conservation, ensuring that new developments do not erode the very natural capital that sustains its brand. Climate change poses increasing threats in the form of rising temperatures and weather variability. Moreover, as capital inflows rise, local inflationary pressures and property price escalation may challenge affordability and social equity.
Nevertheless, the country’s policy framework and institutional maturity provide tools to mitigate these challenges. Strategic zoning, improved coastal management, and ongoing investment in renewable energy can sustain growth while preserving competitiveness. For investors, prudent risk management—adequate insurance, diversified demand segments, and robust legal structuring—remains essential.
Conclusion
By 2045, Costa Rica is poised to consolidate its position as the most balanced FDI destination in Central America—one where economic growth, environmental stewardship, and lifestyle quality coexist. Tourism and real estate will anchor this evolution, not merely as industries but as pillars of the country’s long-term value proposition.
For hotel owners and developers, the next two decades offer an opportunity to align with this transformation. Those who invest in sustainability, professionalism, and transparency will be the primary beneficiaries of the projected surge in international capital. As global investors continue to seek destinations that combine natural beauty with legal stability and ethical governance, Costa Rica’s message to the world is clear: here, profit and purpose can grow together.
This article was generated with AI assistance and reviewed by Wagner Loría, Hospitality Real Estate Broker at My Realty Butler Costa Rica.
