1. Hotels and Tourism Enterprises.

There is a large number of small and medium-sized hotels and cabins in and around La Fortuna. Despite this, it can be incredibly difficult to get a room during high season, which suggests that the demand can cope with additional supply if you were to open a hotel.

The area surrounding Lake Arenal has the potential to become a profitable rental market once it develops and adds more attractions for vacationers, but any tourism investment around the area at this point would be somewhat risky.

2. Commercial Forests.

Some investors have been buying land in the area to use for commercial forestry, planting hardwoods and native trees that can be felled and sold within 10-15 years. Demand for timber in Costa Rica has grown tremendously along with the expansion of the real estate market, and strict environmental regulation means legal hardwood can be difficult to find. Teak, which is a popular wood for furniture in Costa Rica, can be grown in the country and harvested with the proper permits.

If you are considering investing in commercial foresting, you should do some research on the applicable regulations. For example, trees can be cut only after they reach a certain age, and that age differs depending on the species. Generally, any trees felled for sale as lumber must also be replanted.

Fortunately for investors, the Costa Rican government counts tree planting for commercial use as a form of reforestation. It wants to encourage this form of agriculture and MINAET provides a $600-per-hectare subsidy for reforestation projects, even commercial ones. About half of the money is provided on initial planting and the rest distributed over a period of about 10 years. Commercial forestry can be a very profitable venture if done properly and with the right trees. Seeds can cost around 50 colones (less than a penny) each and mature trees can be worth about $100 (sometimes more and sometimes less).

As a side note, there are risks involved with tree farming, the same as any other investment, and you should go into it with your eyes open. Costa Rica has a history of forestry scams that involved selling shares in teak farms to foreigners by promising fabulous returns with little investment and no work. Just keep in mind that these forestry scams still pop up again from time to time, and as with any investment opportunity, if it sounds too good to be true, it probably is.

Finally, remember that primary rainforest cannot be touched and just three trees a year can be felled off of pasture land. For mixed forest you need permission to fell trees over a certain age or height.

3. Reforestation

Reforestation with a wide variety of native rainforest species would allow you to do your bit to help with climate change, though it probably won’t make you much money. It is true, however, that dedicating part of your land to reforestation will create a private reserve that makes your land more valuable, while at the same time contributing to a more healthy and cleaner environment, adding to the beauty of your land, and creating a place for animals and birds to thrive.

4. Ornamental Plant Production.

In the San Carlos area many farmers grow ornamental plants for export or for sale in real estate boom areas such as Northwest Guanacaste, the Central Pacific and the Central Valley. The region’s high precipitation makes it ideal for this type of agriculture, plus it’s located within a reasonable distance of all three markets.

5. General Contracting and Construction

This type of professional work is an option in almost any area of the country for those with the experience and qualifications. So many expatriates are building instead of buying finished homes, and most don’t speak Spanish or know the culture well enough to supervise the construction themselves. Remember, though, that fluent Spanish is not good enough, as Costa Rican culture is substantially different than even other Latin cultures you may be used to. Likewise, local builders have their own methods and materials that they’re used to using – not an impossible obstacle for an experienced contractor, but one to keep in mind.

6. Real Estate investment

Given that the real estate market has yet to bloom in this region of Costa Rica, there is potential for profits from buying real estate and selling it later for a profit. Prices are also low enough as to be accessible to even entry-level investors. Building your own house is a way to kill two birds with one stone: Have your home, and guarantee that you will be able to sell it for more than you spent on it (though the headaches of building in Costa Rica make that less attractive).

Those looking to build often don’t want a large parcel of land, but maybe around the 1,000 square meter range. Buying a farm or large parcel of land, subdividing it, putting in the infrastructure, and selling the lots you won’t be using can be a profitable venture. But remember, the northern zone isn’t really on the real estate map yet, so it is far from a sure thing that you would make back a short-term real estate investment made in that area.