Costa Rica: much more than its natural charms
- Luiz Cincurá
- Jan 16
- 6 min read
Updated: Jan 19
The country is home to 6% of the planet's life.
Did you know that Costa Rica , occupying only 0.03% of the Earth's surface , is home to about 6% of the world's biodiversity? It is the country with the highest biodiversity per square kilometer on the planet.
Another surprising fact is that the country abolished its army in 1949 , reinvested military resources in education, health, and environmental conservation, and became one of the most stable, safe, and charming destinations in Latin America.
Geographic information and government system
Costa Rica is located on the isthmus of Central America , with the Pacific Ocean to the west and the Caribbean Sea to the east . It has 4,560,000 inhabitants. It borders Nicaragua to the north and Panama to the south . The country is relatively small—about 51,100 km² , comparable to the US state of West Virginia—but extremely diverse geographically, with mountains, volcanoes, rainforests, and beaches on both sides of the isthmus.
Its capital is San José , located in the central valley where most of the population and economic activity is concentrated. Spanish is the official language, with English widely used in tourist areas and by expatriates.
The country is a stable democratic republic with regular elections, consolidated civil liberties, and a vibrant civil society. Since the founding of the Second Republic in 1949, Costa Rica has invested in building democratic institutions, characterized by transparent governance and respect for human rights.
International organizations such as Freedom House and The Economist Intelligence Unit consistently rank Costa Rica as one of the freest countries in Latin America in terms of freedom of expression.
Education, health and safety
In 1949, Costa Rica made the bold decision to permanently abolish its army, transferring the funds previously allocated to defense to social sectors such as education, public health, and environmental conservation. This allowed for greater social investments that contributed to high literacy rates, health coverage, and quality of life, comparable to those of wealthier economies.
Currently, the country has one of the highest literacy rates in the world, reaching 96.1%.
The absence of traditional armed forces has been accompanied by the strengthening of civilian police forces to maintain law and order. This, coupled with a strong sense of community and democratic stability, makes Costa Rica one of the safest countries in the region for residents and visitors.
Economy: from GDP to trade balance and key sectors
The Costa Rican economy is a mix of services, industry, and agriculture; with a strong emphasis on technology, tourism, and value-added exports .
In 2024, Costa Rica's total GDP was approximately US$95.35 billion , representing about 0.09% of the global economy.
Costa Rica's GDP per capita reached approximately US$14,800 in 2024 , placing it above the world average and signaling a relatively high standard of living for the region.
The historical trade balance has shown moderate deficits, reflecting imports slightly exceeding exports in recent years.
Regarding inflation , recent projections indicate that it has remained under control, with variations within moderate ranges, reinforcing the country's macroeconomic stability.
Public debt
Costa Rica's public debt has shown recent signs of stabilization: at the beginning of 2025, total public debt represented 57.4% of GDP, with 42.8% being domestic debt and 14.6% being external debt. This appears more manageable when analyzed within the Latin American context, given that many countries in the region have significantly higher levels of indebtedness.
Several Latin American economies operate with much higher levels of public debt — some exceeding 70%, 80%, or even 90% of GDP — in addition to facing weaker fiscal balances, higher inflation, or lower credit ratings.
Costa Rica's debt is not small, but the country's economic stability, institutional soundness, and comparatively moderate debt level make it more manageable than many neighboring economies.
The real estate market: a continuous flow of options and opportunities.
The real estate market in Costa Rica is accessible to both nationals and foreigners, who can acquire properties under almost the same legal conditions and without significant restrictions, except in areas of strict environmental protection. In cities like San José, modern residential condominiums coexist with preserved green areas, offering the option of urban lifestyles integrated with nature.
Prices vary widely.
Unless you're looking for something large and luxurious, the average rent for a typical one-bedroom apartment can range from $250 to $500 . A three-bedroom apartment can cost between $615 and $825 . Properties closer to coastal cities tend to have higher prices.
Simpler plots of land and houses in the countryside can cost anywhere from US$30,000 to US$100,000 ;
In the San Jose metropolitan area , residential properties in good locations often range from about US$800 to US$3,500 per square meter or more, depending on the view, proximity to services, and development.
In tourist areas or more developed areas , beachfront homes, condominiums, or villas can easily reach US$600 per square meter .
On the northern coast of Costa Rica - in the luxurious and expensive province of Guanacaste - homes can range from US$900,000 to US$3.6 million in the most exclusive area - the Gulf of Papagayo .
Tax burden
Costa Rica only taxes income generated within the country . Income earned abroad, such as pensions, investments, and remote work for foreign companies, is not taxed locally , making it highly attractive to foreigners and nationals with international income. Income tax rates are progressive, ranging from 0 to 25%.
Technologies and exports
Costa Rica has established itself as the 10th largest global exporter of medical devices¹ and the 1st country in the world in per capita exports . The country's exports grew by an average of 22% per year between 2020 and 2024. Currently, exports of precision equipment and medical devices represent 48% of all the country's goods exports.
Costa Rica has developed advanced technological capabilities , especially in biomedical engineering and embedded software, with the development of embedded software for medical equipment , as in the case of Terumo Blood & Cell Technologies and Research and Development Laboratories, and companies such as Hologic and Boston Scientific.
Also noteworthy are the Precision component printing, medical polymer molding, and microelectronics applied to healthcare devices.
By expanding its reach far beyond simply being a tourist and environmental destination, Costa Rica has become a global hub for medical technology , with political stability, a highly skilled workforce, an innovation ecosystem, and strong attraction for foreign investment, representing 52% of all new investments in medical devices in Latin America.
Costa Rica offers a unique combination of political stability, skilled human talent, access to international markets, and environmental sustainability.
The country's geographic location allows for direct connections with the United States and Europe , and its numerous free trade agreements facilitate exports from a single logistics platform.
The free trade zone regime also offers attractive tax incentives, as well as top-quality legal, accounting, and real estate services, reducing barriers to entry for new investors and improving profit margins.
Costa Rica, therefore, reveals itself to be much more than just its natural charms. It is a country that has managed to harmonize environmental preservation, quality of life, and economic and social development, in a rare model of contemporary balance.
Founder and Publisher: Luiz Cincurá
Notice:
1. Main types of medical devices produced in Costa Rica: needles, catheters and cannulas (41.5% of sector exports), medical prostheses (14.5%), endoscopy devices, cardiology equipment, orthopedic implants, ophthalmological devices, diagnostic equipment, solutions for advanced surgery.
Sources:
ABC. El mapa de la deuda externa en América Latina. Acesso em: January 16, 2026.
CENTER AMERICA 360°. More than 100 medical device companies operate in Costa Rica and generate 60 thousand jobs. Access at: January 15, 2026.
COFACE FOR TRADE. Costa Rica. Accessed on: January 15, 2026.
COUNTRY ECONOMY. Costa Rica's Trade Balance. Accessed on: January 15, 2026.
EMBASSY OF COSTA RICA. Biodiversity and natural resources . Access at: January 15, 2026.
FUTURE POLICY. Constitutional Abolition of the Army in Costa Rica. Access at: January 15, 2026.
LA REPÚBLICA. Costa Rica consolidates itself as the tenth global exporter of medical devices . Accessed on: January 15, 2026.
ODIS. Costa Rica . Accessed on: January 15, 2026.
REMAX CENTRAL AMERICA. Real estate market. Accessed on: January 15, 2026.
SPECIAL PLACES. Costa Rica. Accessed on: January 15, 2026.
STATISTA. Public debt in Latin America - statistics & facts . Accessed on: January 16, 2026.
THE REAL TIMES. Costa Rica's Fiscal Path: Balancing Debt, Growth, and Social Demands. Access at: January 16, 2026.
TRADING ECONOMICS. GDP per capita of Costa Rica. Accessed on: January 15, 2026.
UNITED NATIONS . Country facts about Costa Rica. Accessed on: January 15, 2026.
UNESCO. Abolition of the Army in Costa Rica . Access at: January 15, 2026.
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