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Central America is rapidly positioning itself as a key player in the global technology landscape. Countries like Costa Rica, Panama, and El Salvador are making strategic investments in education, digital infrastructure, and regulatory reforms to attract international tech companies and remote workers. Their efforts are not only improving their competitive standing in Latin America but also aligning the region with global innovation trends.
For businesses considering expansion into Latin America, Central America offers a compelling mix of skilled talent, innovation, and opportunity.
Here we explore the top tech hubs in Central America and how LARM, a leader in global mobility and relocation services, can support your company in making a seamless transition to this dynamic region.
Costa Rica
Costa Rica consistently ranks among the top countries in Central America for technology and innovation. With a strong emphasis on education, particularly in STEM disciplines, it offers a highly skilled and competitive workforce. According to the World Economic Forum, the country boasts some of the highest literacy and education levels in Latin America.
Its political stability and environmental leadership further enhance its appeal, especially for companies that prioritize sustainability. The introduction of Costa Rica’s Digital Nomad Visa in 2021 has made it even more attractive to remote workers, allowing them to live and work in the country for up to two years, an ideal option for tech firms with hybrid or distributed teams.
Costa Rica also stands out economically, with 24.18% of its manufactured exports classified as high-tech and 16 of the world’s top 100 IT companies operating within its borders. It ranks first in digital skills in Latin America, reflecting sustained public and private investment in education and workforce development (CINDE, Trading Economics).
Key Advantages:
- Highly educated tech talent pool
- Stable democratic government
- Digital Nomad Visa (1 year with up to an additional 1 year renewable, for a total of 2 years)
- Strong commitment to renewable energy and environmental protection (over 98% of energy from renewables)
- Solid intellectual property protection and regulatory transparency
Considerations:
- Higher cost of living compared to other Central American countries
- Bureaucracy can slow down business setup processes
- Limited urban infrastructure outside of San José
Panama
Panama’s strategic location—serving as a bridge between North and South America and offering access to both the Pacific and Atlantic Oceans—makes it a prime logistics and technology hub. The country’s pro-business environment features tax incentives, a strong banking system, and legal protections that attract foreign investors.
To support the growing remote workforce, Panama offers a Digital Nomad Visa, allowing foreign professionals to live and work in the country for up to nine months, with the possibility of a one-time extension for an additional nine months. Applicants must demonstrate a minimum annual income of $36,000 from a foreign source and provide proof of employment or self-employment. Panama also has specially dedicated areas for companies to establish operations with favorable conditions for visas, like Panama Pacífico and the SEM visa, which also give tax advantages to employees and companies.
Panama is emerging as a regional fintech hub, bolstered by its U.S. dollar-based economy, advanced telecommunications infrastructure, and global connectivity via the Panama Canal. According to Infomineo, the country’s fintech sector is expanding rapidly and playing a key role in closing financial inclusion gaps.
Key Advantages:
- Business-friendly tax regime
- Central location with global connectivity
- Remote Worker Visa (up to 18 months) and other favorable regimes.
- Advanced telecommunications infrastructure (notably in Panama City)
- A U.S. dollar-based economy that eases financial transactions and reduces exchange risk
Considerations:
- Tech talent pool still developing
- Internet access and infrastructure vary widely outside major cities
- Urban congestion and rising costs in Panama City
El Salvador
El Salvador is carving out a unique space in Latin America’s tech ecosystem. In 2021, it became the first country to adopt Bitcoin as legal tender, signaling a bold embrace of digital innovation. While recent reforms adjusted the law so that Bitcoin is no longer mandatory for all businesses, it remains a permitted form of foreign currency; underscoring the country’s openness to financial technologies.
Although El Salvador does not have a formal digital nomad visa, remote workers can stay between 90 and 180 days under tourist status. As long as they are paid by a foreign employer, they are free to live and work within the country during that time, making it an accessible destination for location-independent professionals.
The government’s tech-forward vision is also reflected in its growing ICT sector, with over 32,000 professionals employed, representing more than 20% of tech employment across Central America (LATAM FDI). With increasing investments in startups, fintech, and digital infrastructure, El Salvador is positioning itself as a rising innovation hub in the region.
Key Advantages:
- Flexible 90–180 day stay for remote workers under tourist entry
- Strong pro-tech policy signals, including openness to crypto
- Government-backed programs for startups and fintech
- Competitive cost of living for digital professionals
Considerations:
- Infrastructure and governance continue to evolve
- Internet access may vary outside urban centers
- Safety perceptions may influence foreign investment
How LARM Helps Tech Companies Relocate and Thrive in Central America
Expanding into a new country, especially one with different regulations, languages, and cultures—requires more than just logistics. It takes strategic support to ensure your team can hit the ground running. That’s where LARM comes in.
As a global mobility and relocation expert with over 25 years of experience across Latin America and the Caribbean, LARM provides high-touch, end-to-end support tailored to the unique needs of tech companies. Our local specialists in each country offer unmatched insights and guidance to ensure compliance, cultural integration, and operational efficiency from day one. Whether you’re moving a single executive or launching a full team, LARM ensures your relocation is smooth, compliant, and aligned with your business goals.
Central America is Ready—Are You?
Central America is no longer just a gateway between continents; it’s emerging as a destination in its own right for innovation and tech-driven growth. From Costa Rica’s talent-rich ecosystem and Panama’s global connectivity to El Salvador’s bold digital reforms, the region is redefining its future.
The data speaks for itself: Central America isn’t just promoting business-friendly conditions, it’s reinforcing them with concrete policies, targeted investments, and measurable progress. For companies considering expansion into Latin America, the region offers a powerful combination of skilled talent, cost efficiency, and digital potential.
With LARM as your relocation partner, entering the Central American market becomes more than a possibility, it becomes a smart, strategic move.
Sources:
- Dirección General de Migración y Extranjería. “Permisos Migratorios.” Migración Panamá, 2025, https://www.migracion.gob.pa/permisos-migratorios/.
- Ministerio de Relaciones Exteriores de Panamá. “The Government of Panama Has Launched a New Visa to Promote ‘Working from Home’ for Tourists While in Panama.” MIRE Panamá, 2021, https://mire.gob.pa/ministerio/the-government-of-panama-has-launched-a-new-visa-to-promote-working-from-home-for-tourists-while-in-panama/.
- Dirección General de Migración y Extranjería. “El Salvador Immigration.” Adopting El Salvador, 2025, https://world.adoptingelsalvador.gob.sv/.
- Servicio Nacional de Migración. “Requisitos para Solicitar Visa de Corta Estancia como Trabajador Remoto.” Migración Panamá, 2023, https://www.migracion.gob.pa/wp-content/uploads/18.REQUISITOS-PARA-SOLICITAR-VISA-DE-CORTA-ESTANCIA-COMO-TRABAJADOR-REMOTO.pdf.
- Dirección General de Migración y Extranjería. “Requirements to Visit El Salvador.” Invest in El Salvador, 2025, https://investinelsalvador.gob.sv/requirements-to-visit-el-salvador/.
- CINDE. “Digital Technologies.” CINDE: Investment Promotion Agency of Costa Rica, https://www.cinde.org/en/sectors/knowledge-intensive-services/digital-technologies. Accessed 12 May 2025.
- “Costa Rica High-Technology Exports (% of Manufactured Exports).” Trading Economics, https://tradingeconomics.com/costa-rica/high-technology-exports-percent-of-manufactured-exports-wb-data.html. Accessed 12 May 2025.
- Infomineo. “Fintech in Central America: Growth, Challenges, and 2024 Outlook.” Infomineo Blog, 2024, https://infomineo.com/blog/fintech-in-central-america-growth-challenges-and-2024-outlook. Accessed 12 May 2025.
- “Technology Jobs in El Salvador.” LATAM FDI, https://latamfdi.com/technology-jobs-in-el-salvador. Accessed 12 May 2025.
- Johnson, Ryan C. “Expanding Workforce Development to Enable Nearshoring in the Northern Triangle.” Center for Strategic and International Studies (CSIS), 2023, https://www.csis.org/analysis/expanding-workforce-development-enable-nearshoring-northern-triangle. Accessed 12 May 2025.
