Costa Rica’s Zona Franca (Free Trade Zone) regime is among the most generous investment incentive packages in Latin America. Companies that qualify can access a combination of tax exemptions, duty-free imports, and streamlined operations that significantly reduce the cost of establishing and running nearshore operations.
Core Tax Benefits
FTZ companies receive: 100% exemption from income tax for 10 years (renewable for 8 more years); 100% exemption from import duties on raw materials, equipment, and components; 100% exemption from sales and consumer taxes; and exemption from municipal taxes.
Who Qualifies
To qualify for Zona Franca status, companies must meet minimum investment thresholds (varies by sector), commit to a minimum employment level, and export at least 75% of their production. Service companies (IT, BPO, SSC) typically have lower thresholds than manufacturing.
Application Process
PROCOMER administers the FTZ regime. The application process typically takes 60–90 days and requires a business plan, financial projections, and documentation of investment and employment commitments. CINDE can assist qualifying companies through the process.
Major Free Trade Zone Parks
Costa Rica has 45+ authorized industrial parks and free trade zones, with the largest concentrations in the Greater Metropolitan Area. Major parks include Coyol Free Zone (medical devices), Global Park, ZonAmerica, and Ultrapark.