COSTA RICA INVESTMENT SPOTLIGHT
The investment climate in Costa Rica is exceptionally favorable, thanks to a combination of winning factors that make the country an attractive destination for foreign direct investment
Writer: Ed Budds | Project Manager: Krisha Canlas
Costa Rica has maintained enviable political and economic stability, backed by a solid institutional framework that guarantees legal security and investor protection.
With a growing global reputation, Costa Rica is regarded as the most politically stable country in Latin America, another factor that ensures a solid investment environment.
Additionally, the country has positioned itself as a leader in sustainability, adopting progressive policies to foster a green economy, which attracts companies that seek to align with these values.
With the objective of being more competitive internationally and more attractive for foreign direct investment (FDI), Costa Rica has also opted for special export regimes to provide benefits and legal certainty to companies and encourage exports from the country.
However, as in any market, there are challenges. The global competition for attracting investment is fierce, and Costa Rica faces the need to continue innovating its policies and value proposition to remain competitive.
Excellence in Professional Services
The Deloitte Touche Tohmatsu Limited (Deloitte) network is one of the most extensive and prestigious professional services firms in the world.
Today considered as one of the big four international accountancy companies, the organization was founded by William Welch Deloitte, who strived to bring change to the accounting industry across the globe. Beginning as a small, humble firm in London, Deloitte has evolved to be a thriving industry titan, comprising more than 415,0000 hard-working employees.
Being a part of this reputable group means that the team at Deloitte Costa Rica understand its clients’ business problems from all possible perspectives, which allows the company to always be one step ahead, presenting a comprehensive and multidisciplinary approach. Indeed, across each project, Deloitte Costa Rica’s people develop practical solutions that add value to each business, all with the aim of being the model of excellence in professional services. The company diligently provides legal advice to both national and international entities through audit, human, capital,
strategy, finance, tax, risk, legal and technology services across Central America and the Dominican Republic.
Deloitte Costa Rica’s expertise spans a vast range of industries, including but not limited to consumption, energy and resources, financial services, government and public services, life sciences and healthcare, technology, media, and telecommunications.
We speak to Alejandra Arguedas Ortega, Tax and Legal Partner at Deloitte Costa Rica, about the diversity of the company’s services and its priorities as the country’s top professional services firm.
Image credits: Mr. Lars Gruber, Architekturfotografie
How does Deloitte Costa Rica contribute to the group’s global success?
Alejandra Arguedas Ortega, Tax and Legal Partner (AAO): Deloitte Costa Rica plays a critical role in Deloitte’s global success through excellence in our services, innovation, talent development, social responsibility, and regional and global integration. These contributions ensure models of quality and professionalism that allow us to continue to be the leading professional services firm.
Could you tell us the story of Deloitte Costa Rica? What were the founding principles of the division?
AAO: Deloitte Costa Rica has been a fundamental entity in the business modeling of the
country since its founding in 1964 by Eladio Villalta and Fernando Herrero. The partnership with Deloitte Haskins & Sells was solidified in 1973, and by 1990, Deloitte Costa Rica became part of the global Deloitte network. In 2007, Alan Saborío took over as Managing Partner of Deloitte Costa Rica and established a shared services center in the country to manage the offices in Honduras, the Dominican Republic, and Nicaragua. By 2020, the firm changed leadership with the arrival of Carla Coghi, who took over as Managing Partner. Coghi was the first woman to be appointed as CEO in Central America, Panama, and the Dominican Republic. What sets Deloitte Costa Rica apart from the competition?
AAO: Deloitte Costa Rica
differentiates itself from the competition in key aspects that reinforce our leadership. We have a wide range of services that we implement under a comprehensive and multidisciplinary approach that reinforces our capacity for regional collaboration.
We have specialists in different service lines, generating connectivity that allows us to combine knowledge and skills to offer a broader and deeper perspective, in addition to sharing best practices and offering more comprehensive and personalized solutions that adapt to the local needs of our clients.
We are a firm focused on maintaining the highest standards of quality and professionalism in all our services. One of our daily goals is to stay ahead of the curve
in adopting and implementing emerging technologies and solutions to optimize processes and accelerate digital transformation for our clients. Deloitte Costa Rica has committed to continuously improve on new tools and services according to the clients’ expectations and requirements. Please could you give an overview of your main products, services, locations, and client base?
AAO: Deloitte Costa Rica has a broad portfolio of professional services on a wide range of areas to assist clients throughout the different stages. We offer audit services for both public and private companies, whilst tax advisory and compliance services, including transfer pricing, accounting, treasury, and global mobility, is another core business line. Legal services including corporate and secretarial services, labor and employment
law, mergers and acquisitions, are also part of our storefront. Our focus also extends to technology and transformationrelated services, as well as strategy, risk, and transactions. This diversity of services, applicable to both public and private clients from various industries, is supported by more than 10,000 highly qualified and multidisciplinary professionals in the region.
What specific services do you offer to companies that want to invest in Costa Rica?
AAO: At Deloitte Costa Rica, we have various services designed to accompany our clients in the different stages of their development. Precisely, one of these services is strategic planning and transactions. We can assist companies that want to invest in the region from the planning and ramp-up stage, the start of the operation, and the after care. In this service,
DELOITTE WOMEN AT WORK 2024
Every year, Deloitte conducts an annual report, known this year as ‘Women @ Work 2024: A Global Outlook’, which is a culmination of survey responses completed by 5,000 women in different divisions across 10 countries.
The report explores the most important work and social factors that impact womens’ professional development, which subsequently help guide the organization in its next steps to supporting its women workforce.
we accompany businesses in the preparation and evaluation of investment projects, carry out feasibility studies, financial modeling, legal and tax advice, and strategic planning. Our tax and legal team offer a full set-up service, which starts on the definition of the business structure, vehicle incorporation,
registrations, permits, accounting setting, payroll implementation, and tax compliance, altogether with incentives advisory services. As for the technology and transformation area, we accompany our project managers and provide support in the definition of investment sites, negotiating with investors, clients, and stakeholders. Core operations, including facilities set-up, recruiting, and business model definition are other key services.
How can Deloitte Costa Rica help companies identify investment opportunities in the country?
AAO: Deloitte Costa Rica can help through several specialized services and well-defined strategies. Our market analysis and feasibility studies allow us to identify sectors with high growth potential and investment opportunities. In addition, we provide advice on mergers and acquisitions, helping companies to identify, evaluate, and execute opportunities.
We also develop effective strategies so that our clients can enter and expand in the various markets of Central America and the Caribbean. It should be noted
that we always ensure our clients have robust financial advice to optimize investments and comply with local regulations. What recent Deloitte Costa Rica projects are worth highlighting?
AAO: Although we have assisted many clients throughout their establishment in the country, we have several recent projects to highlight. For example, there is a project with the medical manufacturing industry that is going to be installed in a free zone and that has an estimated investment between $50 and $70 million. This project will generate local employment as it is estimated that approximately 300 people will be hired at the beginning of the operation. Furthermore, it is regarded as highly innovative in the field of advanced medical industries, a sector in which we have been working intensively. Another project we have participated in is an excellence service center, which was developed through articulated work and involved the defining of the business model with two main lines (taxes and consulting) to determine the best investment option. This was a cross-cutting
DELOITTE’S WORK CULTURE VALUES:
Integrity – Applying high standards of conduct in all its activities, reinforcing the company’s credibility and reputation.
Cultural diversity –Understanding and respecting different points of view and finding the best solutions to problems. Mutual commitment –Collaborating and working as a team responsibly and building trust.
Added value – Helping clients operate more effectively through vigilance, consistency, and relentless commitment.
and multidisciplinary effort that allowed us to identify the right opportunity and strategy for a project that aims to support operations in the US. The project will also support a significant number of professional areas such as financing, accounting, marketing, and engineering.
Looking ahead, what are Deloitte Costa Rica’s key priorities?
AAO: The priority for Deloitte Costa Rica is to continue consolidating itself as the number one professional services firm in Costa Rica. We want the company to be recognized not only as a consulting firm, but a comprehensive business advisor. We aspire to be the trusted partner for companies looking to invest in Costa Rica, providing support at all stages of the project from conception to completion. This includes activities such as strategic planning, market analysis, implementation, and monitoring of initiatives.
INTERVIEW: CINDE - THE GUIDE FOR BUSINESS AND TALENT DEVELOPMENT IN COSTA RICA
CINDE, the expert and strategic guide for investment, business development, and talent initiatives in Costa Rica, is a private, non-profit organization founded in 1982 with the mission of attracting FDI to the country. We speak to Marianela Urgelles, Managing Director, about the potential of the life sciences industry and the role of new technology in the nation’s future
North America Outlook (NA): Firstly, could you introduce us to CINDE and your vision and mission?
Marianela Urgelles, Managing Director (MU): Our focus is on promoting the country’s socioeconomic development by generating quality jobs and fostering innovation.
To date, CINDE has been globally recognized for its success in positioning Costa Rica as an ideal destination for investment in strategic sectors such as life sciences, technology, advanced manufacturing, and corporate services.
Our vision is to consolidate Costa Rica as a world-class investment hub, offering a competitive and sustainable business environment. At CINDE, we firmly believe in the transformative power of investment to improve the quality of life for Costa Ricans and promote inclusive development nationwide.
NA: As one of the country’s most important economic sectors, how has the life sciences industry developed in Costa Rica in recent years?
MU: The life sciences industry in Costa Rica has experienced remarkable growth in recent years. Currently, more than 90 companies in this sector operate in the country, including global leaders in MedTech, pharmaceuticals, and BioTech.
This growth has been driven by a combination of highly skilled talent, advanced infrastructure, and a regulatory environment that favors innovation.
Costa Rica is now the second-largest exporter of medical devices in Latin America, with products ranging from orthopedic implants to diagnostic devices. The
country has developed a robust ecosystem that includes R&D centers as well as a network of local suppliers that meet the most stringent industry standards.
This environment has enabled companies not only to manufacture but also to innovate and develop new products from Costa Rica.
NA: What converging technologies are leading the future of life sciences, and how is Costa Rica getting the most out of them?
MU: Converging technologies such as artificial intelligence (AI), BioTech, and robotics are transforming the future of life sciences globally, and Costa Rica is no exception.
The country has been investing in developing capabilities in these areas, recognizing their potential to revolutionize sectors like healthcare, medical device manufacturing, and pharmaceuticals.
For instance, AI is being used to improve efficiency in the manufacturing of medical devices, while BioTech is opening new opportunities in the development of personalized treatments.
With its focus on innovation and skilled human talent, Costa Rica is well-positioned to capitalize on these opportunities.
NA: Equally, what major investment opportunities are being generated in Costa Rica by the current technological convergence?
MU: Technological convergence is creating new investment opportunities in Costa Rica, particularly in sectors like BioTech, advanced manufacturing, and AI. The country has proven to be a leader in the adoption of new technologies, making it an ideal destination for companies looking to innovate and develop next-generation products.
Moreover, Costa Rica has been working on strengthening its digital infrastructure and promoting policies that facilitate investment in technology. This includes tax incentives for R&D, as well as training programs to develop the human talent needed for these new industries.
Investment opportunities also extend to the semiconductor sector, where Costa Rica is emerging as a key player in the global supply chain.
NA: Can you expand on why Costa Rica has become a natural choice for MedTech, pharmaceutical, and BioTech companies?
MU: Costa Rica has established itself as a natural choice for MedTech, pharmaceutical, and BioTech companies for several reasons. Firstly, the country has a highly skilled and bilingual workforce, with a focus on technical and higher education that ensures a steady flow of specialized talent.
Additionally, Costa Rica’s strategic geographic location allows for quick access to North American and Latin American markets, which is a key factor for companies looking to expand their global presence.
Another factor that makes the country an attractive destination is its commitment to sustainability. Many companies operating in the life sciences sector have corporate policies that prioritize sustainability, and Costa Rica, as a global leader in this area, offers an environment that aligns with these values.
Finally, the robust ecosystem of suppliers and specialized services, along with continuous support from CINDE and the government, ensures that companies can operate efficiently and competitively in the country.
“EDUCATION IS A FUNDAMENTAL PILLAR IN COSTA RICA, AND THE COUNTRY HAS INVESTED SIGNIFICANTLY IN DEVELOPING AN EDUCATIONAL SYSTEM THAT FOSTERS CRITICAL THINKING AND TECHNICAL SKILLS FROM AN EARLY AGE”
– MARIANELA URGELLES, MANAGING DIRECTOR, CINDE
NA: How does Costa Rican talent remain a key pillar in CINDE’s efforts to make Costa Rica a successful FDI destination?
MU: Education is a fundamental pillar in Costa Rica, and the country has invested significantly in developing an educational system that fosters critical thinking and technical skills from an early age.
Moreover, the culture of innovation and entrepreneurship that has been cultivated in the country has allowed young Costa Ricans to be at the forefront of developing new technologies and solutions. This has created a dynamic environment where life sciences companies can access human talent that is not only technically competent but also capable of thinking creatively to solve industry challenges.
NA: Is there a promising future for advanced manufacturing in Costa Rica?
MU: The future of advanced manufacturing in Costa Rica presents a golden opportunity.
We expect to see continuous growth, driven by the expansion of existing companies and the arrival of new investments. The trend toward personalized medicine and the development of new technologies, such as BioTech and AI, will continue to be key drivers of this growth.
Additionally, we foresee that Costa Rica will continue to consolidate itself as an innovation hub with a focus on R&D of new products and solutions.
In advanced manufacturing, Costa Rica was selected as a strategic partner in the US CHIPS Act. As experts in attracting and promoting FDI to Costa Rica, we are supporting the country’s positioning as a key player within the advanced manufacturing sector by driving higher value-added processes in the industry such as microchip design, assembly, packaging, and testing.
Costa Rica is one of the best-positioned countries to compete with other destinations in Asia in the supply chain. Moreover, it ranks among the top 10 countries worldwide in terms of port operations efficiency and speed, according to the World Bank’s 2023 Logistics Performance Index.
Its logistics performance surpasses the average of upper-middle-income countries, consolidating its position as a safe and stable destination that guarantees business
continuity backed by the rule of law.
Elsewhere, Costa Rica already has 20 companies linked to the semiconductor ecosystem, and a similar number of businesses that indirectly supply or are already part of it.
We are envisioning two to four projects from companies established in Costa Rica that are expanding or diversifying their operations due to the increased demand caused by the reconfiguration of the semiconductor supply chain.
Costa Rica is certainly well-positioned, but we face a great opportunity, and to seize it, there is work to be done such as continuing to specialize our human capital.
NA: Finally, what are CINDE’s key priorities to continue attracting and promoting investment in Costa Rica’s life sciences industry?
MU: CINDE’s key priorities for continuing to attract and promote investment in strategic sectors include the
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“IN
ADVANCED MANUFACTURING, COSTA RICA WAS SELECTED AS A STRATEGIC PARTNER IN THE US CHIPS ACT. AS EXPERTS IN ATTRACTING AND PROMOTING FDI TO COSTA RICA, WE ARE SUPPORTING THE COUNTRY’S POSITIONING AS A KEY PLAYER WITHIN THE ADVANCED MANUFACTURING SECTOR BY DRIVING HIGHER VALUE-ADDED PROCESSES IN THE INDUSTRY SUCH AS MICROCHIP DESIGN, ASSEMBLY, PACKAGING, AND TESTING”
– MARIANELA URGELLES, MANAGING DIRECTOR, CINDE
continuous improvement of the business environment, the promotion of innovation, and the development of human talent.
We are focused on strengthening the multinational ecosystem by promoting collaborations between companies, universities, and research centers. Training and talent development are a priority, and we will continue to support programs that prepare the workforce for future challenges.
Lastly, we will continue to position Costa Rica as a leader in sustainability, an increasingly relevant element for global companies.
CINDE - THE GUIDE FOR BUSINESS AND TALENT DEVELOPMENT IN COSTA RICA www.cinde.org
