Lex Mundi Global Foreign Investment Restrictions Guide |
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Costa Rica |
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(Latin America/Caribbean)
Firm
Facio & Cañas
Contributors
Sergio Solera |
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| Please provide a short summary of the Foreign Investment Restrictions adopted by your jurisdiction. | Costa Rica is known for its relatively open and liberal trade policies, having signed numerous free trade agreements with various countries and trading blocks, in order to attract foreign investment, encourage innovation, and develop a skilled workforce to remain competitive in the global market. In general, foreign investors who want to invest in Costa Rica, either by starting up new businesses or acquiring existing businesses or companies, do not require prior government approval except in regulated industries or under general rules such as antitrust regulations. |
| Is your regime focused on economic protectionism, national security, or a combination? | Costa Rica is not typically characterized by its strong economic protectionism; instead, emphasizes policies and strategies that promote economic development and international trade. Instead, it directs its resources toward law enforcement, public safety, and addressing non-military threads, such as drug trafficking, money laundering or organized crime. |
| Who is considered a "foreign investor" and are only investments from particular countries covered? | In Costa Rica, any individual or company that was born or incorporated or that is domiciled outside of Costa Rica, are considered foreign investors, and there are no restrictions of any kind for foreign investors based on country of origin. In general, there is no distinction between countries to determine whether a person is a “foreign investor” or not. |
| What sectors are subject to Foreign Investment Restrictions screening? | There are very few regulated sectors, such as telecommunications, banking, cabotage, electricity, or mining, in which a specific Costa Rican participation is required. |
| What are the relevant thresholds? | Except for antitrust filings, there are no threshold triggers for direct foreign investment filings in Costa Rica. However, restrictions are imposed on foreign investment in Costa Rica. |
| Is notification under Foreign Investment Restriction rules mandatory? | As a general rule, there are no foreign investment notification requirements. |
| Is the relevant authority's approval required prior to closing? | Except for antitrust filings, Costa Rica's regime does not provide for approval by any competent authority for foreign investment. |
| What was the impact of COVID-19 on your foreign investment regime? | Costa Rica had a 34% decrease in foreign investment in 2020 due to the COVID-19 pandemic; The confinement and social distancing measures adopted by the country negatively affected foreign investment in Costa Rica. |
| How active has your agency been in reviewing, delaying, modifying or blocking foreign investments? | There is no agency that reviews foreign investments in general. |
| On what grounds can enforcers review and block a foreign investment? How active have they been in the past 6 months? | As said before, except for anti-trust filings, Costa Rica's regime does not provide for approval by any competent authority for foreign investment. |
| Do you expect any regulatory developments over the next 6 months? | No, we do not expect any regulatory development in this regard. |
Lex Mundi Global Foreign Investment Restrictions Guide
Costa Rica
(Latin America/Caribbean) Firm Facio & CañasContributors Sergio Solera
Updated 27 Oct 2023Costa Rica is known for its relatively open and liberal trade policies, having signed numerous free trade agreements with various countries and trading blocks, in order to attract foreign investment, encourage innovation, and develop a skilled workforce to remain competitive in the global market. In general, foreign investors who want to invest in Costa Rica, either by starting up new businesses or acquiring existing businesses or companies, do not require prior government approval except in regulated industries or under general rules such as antitrust regulations.
Costa Rica is not typically characterized by its strong economic protectionism; instead, emphasizes policies and strategies that promote economic development and international trade. Instead, it directs its resources toward law enforcement, public safety, and addressing non-military threads, such as drug trafficking, money laundering or organized crime.
In Costa Rica, any individual or company that was born or incorporated or that is domiciled outside of Costa Rica, are considered foreign investors, and there are no restrictions of any kind for foreign investors based on country of origin. In general, there is no distinction between countries to determine whether a person is a “foreign investor” or not.
There are very few regulated sectors, such as telecommunications, banking, cabotage, electricity, or mining, in which a specific Costa Rican participation is required.
Except for antitrust filings, there are no threshold triggers for direct foreign investment filings in Costa Rica. However, restrictions are imposed on foreign investment in Costa Rica.
As a general rule, there are no foreign investment notification requirements.
Except for antitrust filings, Costa Rica's regime does not provide for approval by any competent authority for foreign investment.
Costa Rica had a 34% decrease in foreign investment in 2020 due to the COVID-19 pandemic; The confinement and social distancing measures adopted by the country negatively affected foreign investment in Costa Rica.
There is no agency that reviews foreign investments in general.
As said before, except for anti-trust filings, Costa Rica's regime does not provide for approval by any competent authority for foreign investment.
No, we do not expect any regulatory development in this regard.