Costa Rica, a vibrant country in Central America known because of its landscapes and eco-adventures is increasingly becoming a hotspot for technology companies looking for growth opportunities and a strategic location. In Costa Rica, the spirit of “Pura Vida” is not confined to its breathtaking nature; it’s the lifeblood of a growing tech ecosystem. Costa Rica is redefining “Pure Life” marrying its commitment to environmental conservancy with a dynamic leap into the technological forefront.
Recently Farah Stockman in an article published in the New York Times said “…I saw evidence of that in Costa Rica, a stable democracy that is vying to become the Silicon Valley of Latin America — with active support from the United States.” Costa Rica is emerging as a significant center for microchip packaging and testing, establishing its presence beyond the Asian stronghold in this sector. This development traces back to the 1990s when Intel set up a manufacturing facility close to San José, paving the way for additional factories and industries. This industrial growth has nurtured a workforce with a strong orientation towards technology. Presently, the primary export of Costa Rica has shifted from traditional products like coffee and bananas to medical devices, highlighting the country’s evolving economic landscape.
Costa Rica’s geographical position is a significant advantage. Situated between North and South America, it offers easy access to both markets. Moreover, its Central Time Zone aligns well with U.S. business hours, facilitating seamless communication and operations with one of the world’s largest tech markets.
Education is a cornerstone of Costa Rican society, with a literacy rate among the highest in Latin America. The country produces a pool of skilled bilingual professionals every year, particularly in engineering, software development, and IT, thanks to its emphasis on education and numerous universities focusing on STEM fields.2
Foreign tech companies operating in Costa Rica’s Free Trade Zones enjoy substantial incentives. These include full exemption from import and export duties, capital and profit repatriation benefits, and significant reductions or exemptions in income and local taxes. Such incentives significantly reduce operational costs and enhance profitability, making Costa Rica an attractive destination for investment.
Costa Rica is known for its political stability, absence of an army, and a strong legal framework supporting business and investments. This stable environment, combined with a government that is supportive of foreign investment and technology development, creates a secure and inviting atmosphere for tech companies.
As a global leader in environmental sustainability, Costa Rica has a commitment to becoming carbon neutral. Tech companies with a focus on green practices and sustainability will find Costa Rica’s spirit and policies aligning with their own, offering a unique opportunity to integrate sustainability into their business model.
Over the years, Costa Rica has invested heavily in its telecommunications and technology infrastructure, ensuring that businesses have access to high-speed internet and modern facilities, essential for tech companies to thrive.
As a friendly neighbor and business partner of the United States, Costa Rica can become the Silicon Valley of Latin America. Costa Rica can certainly help reducing the world’s dependency of China in a friendly and “Pura Vida” way.
We invite you to visit Costa Rica and explore the different investment opportunities and benefits our country offers. Pura Vida in life and in doing business.
David Garces Jaramillo, Esq.
