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Companies operating under Costa Rica's Free Trade Zone regime
INCENTIVES

Free Trade Zones
in Costa Rica

The complete guide to
incentives, eligibility and how to apply

Free Trade Zone Regime · Costa Rica

What are Free Trade Zones
in Costa Rica?

0% income tax for up to 12 years*

*When investing outside of GAM. 8 years for inside GAM.

Costa Rica's Free Trade Zones (FTZ) are a special tax and customs regime that lets qualifying companies operate with a 0% income tax rate for up to 8–12 years, 100% foreign ownership, and full profit repatriation. The regime is governed by Law No. 7210 and administered by PROCOMER.

The Free Trade Zone regime is the main instrument Costa Rica uses to attract and retain foreign direct investment. Rather than a physical location alone, "operating under the FTZ regime" is a legal status a company applies for, it can be located inside a registered FTZ park or, under certain conditions, outside one.

Companies across manufacturing, services, and strategic sectors use the regime. Eligibility, minimum investment, and the exact tax schedule depend on two things: whether the operation is inside or outside the Greater Metropolitan Area (GMA), and whether it sits inside or outside a registered FTZ park.

Browse all registered Free Trade Zones and business parks

What tax incentives do Free Trade Zones offer?

Qualifying companies receive a declining income-tax schedule plus a series of permanent 0% exemptions. The schedule depends on location relative to the GMA.

Income tax schedule

  • 0% Income tax Years 1–8 (inside GMA) Years 1–12 (outside GMA)
  • 15% Income tax Years 9–12 (inside GMA) Years 13–18 (outside GMA)
  • 30% Income tax Year 13 onward (inside GMA) Year 19 onward (outside GMA)

Source: Free Trade Zone Regime, Law No. 7210 / PROCOMER.

Permanent exemptions

0%

On all of the following, with no time limit:

  • Remittances & profit repatriation tax
  • Local VAT (13%)
  • Import taxes
  • Withholding tax on royalties & fees
  • Interest income
  • Stamp duty

Source: Free Trade Zone Regime, Law No. 7210 / PROCOMER.

Time-limited exemptions

Property transfer tax & municipal patent: 0% for the first 10 years of operation.

Renewal

Companies may renew their tax incentives for an additional 8 years upon making a significant reinvestment. This renewal can be requested an indefinite number of times (Article 20 bis, Law No. 7210).

Where can you locate? Zones & business parks

Costa Rica has Free Trade Zone parks across the Greater Metropolitan Area and in regional hubs outside it. Operating outside the GMA unlocks a longer 0% window and a lower minimum investment (see eligibility below).

Explore all Free Trade Zones & business parks

Which sectors use the regime?

Companies operating in Costa Rica's Free Trade Zones

Business support and global business services (GBS) operations automatically qualify as a strategic sector. For these companies there is no export requirement, eligibility is driven by payroll, investment, and local linkages rather than an export quota.

Life sciences and advanced manufacturing companies also operate extensively under the regime.

Learn more about Life Sciences in Costa Rica and Advanced Manufacturing.

How do you qualify and apply?

Minimum fixed-asset investment

Minimum fixed-asset investment to join the Free Trade Zone regime (USD)
Inside FTZ parkOutside FTZ park
Inside GMAUSD 150,000USD 2,000,000
Outside GMAUSD 100,000USD 250,000

Source: Free Trade Zone Regime, Law No. 7210 / PROCOMER. Figures use the BCCR reference exchange rate on the date of application.

Who qualifies?

Eligibility depends on the type of operation. Services and global-business-services companies qualify as a strategic sector through an index based on payroll, committed investment and local linkages, with no export quota. Manufacturing, life sciences and processing companies also operate under the regime, with eligibility tied to the criteria set for their activity. CINDE can walk you through whether your specific operation qualifies, at no cost.

Companies that may apply for the Free Trade Zone System Regime

  • Medical device manufacturing MULTINATIONAL COMPANIES

    Manufacturing or services companies, inside or outside the Greater Metropolitan Area (GMA)

  • Strategic analysis SIGNIFICANT
    SUPPLIERS

    Companies looking to support businesses already established in the FTZ Regime

  • Construction crew REAL ESTATE
    DEVELOPERS

    Companies looking to develop an industrial park under the Free Trade Zone Regime

  • Warehouse and distribution COMMERCIAL & DISTRIBUTION SERVICES

    Companies that own their inventory and re-export or sell to other FTZ companies

Talk to CINDE

Every operation is different. CINDE supports investors through eligibility assessment, site selection, and the FTZ application, at no cost.

Frequently asked questions

Do you need to export to qualify for Costa Rica's Free Trade Zone regime?

Not for services and strategic-sector companies. Eligibility is based on a strategic index (payroll, committed investment, strategic-sector activity and local linkages) rather than an export quota.

What is the minimum investment to set up in a Costa Rican free zone?

It ranges from USD 100,000 to USD 2,000,000 in fixed assets, depending on location: USD 150,000 inside a park within the GMA, USD 2,000,000 outside a park within the GMA, USD 100,000 inside a park outside the GMA, and USD 250,000 outside a park outside the GMA.

How long do the tax incentives last?

Income tax is 0% for the first 8 years inside the GMA, or 12 years outside it, followed by a reduced 15% rate and then the standard 30%. Several exemptions (VAT, import taxes, repatriation, and others) are permanent.

What taxes are exempt under Costa Rica's Free Trade Zone regime?

Qualifying companies pay 0%, permanently, on remittances and profit repatriation, local VAT (13%), import taxes, withholding tax on royalties and fees, interest income, and stamp duty. Property transfer tax and municipal patent are also 0% for the first 10 years of operation.

What's the difference between operating inside and outside the GMA?

Operations outside the Greater Metropolitan Area get a longer 0% income-tax window (12 vs. 8 years) and lower minimum investment, because the regime is designed to encourage investment in regional, lower-development areas.

Can the incentives be renewed?

Yes. Companies can renew for an additional 8 years with a significant reinvestment, and this renewal can be requested an indefinite number of times (Article 20 bis, Law No. 7210).