What is the Free Trade Zone Regime (FTZ) in Costa Rica?
It’s a set of incentives and benefits granted by the government to companies making new investments and meeting requirements specified by the Free Trade Zone Law No. 7210 and its regulations.
Typically, companies benefiting from this regime engage in activities primarily related to exporting goods or services and establish their operations within Industrial Parks, whether located in the Greater Metropolitan Area (GAM) or outside it. However, the regulations allow authorization for companies to set up operations even outside these Industrial Parks, provided that their operations are justified and the investment surpasses a certain threshold.
What are the incentives and benefits of being part of the Free Trade Zone Regime?
The FTZ in Costa Rica provides competitive advantages, incentives, and benefits to companies making new investments in the country. Among the main benefits are:
Exemption on imported goods such as machinery, equipment, manufactured and semi-processed products, packaging materials, spare parts, components, and parts. Exemption on the importation of work vehicles meeting specified criteria. Exemption from all taxes associated with exporting or re-exporting products. Ten-year exemption from taxes on: Real estate transfers Municipal taxes Exemption from taxes on foreign remittances. Exemption from sales and consumption taxes on local purchases of goods and services. Income tax exemption (duration and percentages depend on the company’s category).
Who can benefit from the FTZ?
Companies engaged in:
Manufacturing in a strategic sector and those supplying other FTZ companies: Companies transforming raw materials into finished or semi-finished products, whether or not they export. Commercialization: Companies not involved in production but handle, repackage, or redistribute non-traditional goods for export or re-export. They cannot sell in the local market. Services in a strategic sector: Companies providing strategic services to individuals or companies domiciled abroad and/or within the national territory. Park administration: Companies dedicated to administering parks intended for the establishment of businesses under the Free Trade Zone Regime.
