Costa Rica’s Free Trade Zone Regime offers significant incentives to companies carrying out certain strategic activities, but access to the regime requires much more than simply making an investment in the country.
Eligibility depends on the nature of the activity, the location of the operation, the level of investment and other commitments associated with the project.
Which companies may apply?
Eligible activities may include service companies operating in areas such as:
- software development;
- shared service centers;
- call centers;
- engineering;
- data analytics;
- cybersecurity; and
- digital marketing.
Manufacturing companies operating in strategic sectors may also qualify, including:
- medical devices;
- advanced electronics;
- aerospace;
- pharmaceuticals; and
- renewable energy.
The regime also contemplates companies marketing products for export and free trade zone park administrators.
Minimum investment also matters
As a reference, the minimum fixed-asset investment may start at USD 150,000 within an industrial park in the Greater Metropolitan Area (GAM) or USD 100,000 outside the GAM.
Employment commitments and other eligibility criteria applicable to each project must also be considered.
Therefore, operating within a strategic sector is not sufficient on its own. The company must determine whether the specific operation it intends to develop complies with the regime’s requirements as a whole.
Eligibility should be reviewed before structuring the operation
A company interested in establishing operations in Costa Rica should assess from the outset what activity it will perform, which entity will make the investment, where the operation will be located and what level of investment will be committed.
Making corporate or operational decisions before reviewing these requirements may make it more difficult to access the regime later.
Early planning allows the project to be structured consistently with the applicable conditions and helps identify any issues that should be addressed before the application is filed.
Author:
Tomás Quirós
Partner – CENTRAL LAW in Costa Rica
At CENTRAL LAW in Costa Rica, we advise companies from the initial eligibility assessment through the application before PROCOMER and ongoing annual compliance with the regime.
Disclaimer: This content is for informational purposes only and should not be construed as legal or tax advice from its author or CENTRAL LAW.
