Editor’s notes
Costa Rica continues to stand out as one of Central America’s most attractive investment destinations, supported by a stable political environment, resilient economy, strategic location for nearshoring and pro-business administration. This trend is expected to continue following the election of President Laura Fernández of the rightwing Sovereign People’s Party (PPSO), who took office in May, with the government particularly prioritising investment in infrastructure, including the development of ports and road networks. Although the recent rise in crime and the strong appreciation of the colón have caused challenges, in 2026 FDI inflows reached over $5bn for the second consecutive year.
While the M&A market slowed in the run up to the general elections in February, activity has since rebounded, especially in the life sciences, medical technology, tourism and services sectors, where Costa Rica has established itself as a regional hub for leading multinationals. In particular, firms have noted an increase in private equity investment and mid-market transactions. In the banking and finance sphere, there has been a significant uptick in cross-border lending by international commercial banks and development finance institutions, and firms have seen growing demand for more sophisticated financing structures, including syndicated lending, structured finance and capital markets transactions.
Real estate and hospitality also remain among the country’s most dynamic sectors, with firms frequently engaged to advise developers on large-scale mixed-use projects that combine residential, hotel and commercial elements, particularly luxury resorts, branded residences and eco-tourism developments along the Pacific and Caribbean coasts. In addition, industrial and logistics developments are continuing to expand in the Central Valley region to support multinational companies operating in the free trade zone.
Real estate transactions are another ongoing source of work: ranked fourth in the World Happiness Report for 2026, Costa Rica is highly popular destination for foreign buyers of second homes, and the increased use of US-style mortgage financing rather than traditional cash purchases has opened up the market further.
Renewable energy projects also continue to create investment opportunities, with 98% of Costa Rica’s energy generated from hydro, geothermal, wind, biomass and solar power. The country has a global reputation as an environmental leader – in addition to its emphasis on renewable energy, over 25% of its land is protected and there are strong environmental regulations in place to protect its rich biodiversity, requiring continued advice on compliance and regulatory approvals for project development.
However, there continues to be an ongoing debate over Costa Rica’s ban on open-pit mining: in late 2024, former President Rodrigo Chaves proposed lifting the ban to allow the Crucitas gold mine – which was ordered to close by the courts in 2010 due to its environmental impact – to restart operations, and President Fernández has suggested a national referendum on the issue.
Alongside significant transactional activity, firms have continued to see growing demand for compliance and regulatory advice following the introduction of a law establishing corporate criminal liability for acts of corruption in 2019, and Costa Rica’s accession to the OECD in 2021. The use of AI is also creating new legal issues around accountability, transparency and data protection, and while Costa Rica has no specific legislation governing AI, in 2024 it became the first Central American country to launch a National Artificial Intelligence Strategy (ENIA) to align with the principles of the OECD and UNESCO.
In the dispute resolution sphere, Costa Rica has become an attractive jurisdiction for arbitration in Central America, particularly since the 2025 reforms which introduced a single process for both domestic and international arbitration; in particular, the high levels of residential and infrastructure development in the country have meant an uptick in construction and telecoms-related arbitration. There has also been an increase in insolvency cases, as more debtors begin to make use of the 2021 law unifying the different reorganisation and bankruptcy proceedings employed in the past and introducing alternative dispute resolution methods within insolvency proceedings.
On the labour and employment side, employment practitioners have continued to advise on remote working arrangements, enhanced maternity rights, proposed reforms to allow for a 4×3 work week and strengthened workplace protections following Costa Rica’s adoption of ILO Convention 190, which creates the obligation to have an appropriate legal framework to eliminate violence and harassment in the workplace.
In terms of the legal market, in a significant development, 25 partners and more than 500 lawyers moved from EY Law Central America to Deloitte Legal‘s offices throughout the region in September 2025, with a number of well-regarded practitioners – including Hernán Pacheco, the lead partner for Central America, Panama and the Dominican Republic – joining the practice in Costa Rica.
Full-service regional powerhouses BLP, Consortium Legal, Arias and Aguilar Castillo Love remain among the country’s leading firms, while several other firms in the market also benefit from a strong Central American presence, including ALTA - Costa Rica, Lexincorp, Sfera Legal, Ecija, Dentons Central America and, most recently, Tactic Legal.
The market is also home to well-established domestic firms including Facio & Cañas, Lang & Asociados and Zürcher, Odio & Raven, and a number of specialist practices (including labour law boutiques BDS Asesores and Godínez Legal and IP-focused Eproint).