Free Zone regime improves in Costa Rica

Regulatory reforms seek to eliminate paperwork and facilitate partnership with local companies.

Wednesday, September 3, 2008

One of the most important changes in the new decree will allow companies that are under the incentives system to outsource 50% of their operations in the country and not just 25% was the norm until now.
Additional, contracts for these processes or services can now be signed for more than a year, which is the maximum period permitted under the current legislation.

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More on this topic

Update on Free Zones in Costa Rica

August 2016

In 2015 331 active companies were registered, of which 52% are devoted to services, 45% to manufacturing and the remaining 2% to the food industry.

From the executive summary of the study by PROCOMER "Balance of Free Zones: Net profit regime for Costa Rica 2011-2015":

No Changes to be Made to Costa Rica's Free Zones

July 2015

Once again the Presidency has spoken out to calm investors denying the insinuations of a Deputy Minister related to opening up the discussion on the free trade zone regime.

According to an article in, the Deputy Minister of Labour, Harold Villegas, mentioned in the framework of the International Forum of Social Solidarity Economy that "as a society we should discuss the activities that should or should not be tax-free and although free zones functioned well in a moment of history, it's time to move towards a system of greater tax justice and for a more open discussion to take place. "

Costa Rica: Municipal Taxes for Free Zones

May 2014

The Constitutional Court is examining an appeal by a mayor against the exemptions from municipal taxes for companies operating under the free zone regime.

The constitutional motion filed seeks to eliminate Article 20 of the Law on Free Zones, which exempt from tax capital net assets, property and land transfer fees for a period of ten years from the commencement of operations.

The Costa Rican Ministry of Commerce (Comex) expedites free zone reforms

October 2008

Comex is negotiating at the political level so that the free zone reform project can be send to the Legislative Assembly in December.

The initiative will modify incentives to companies that setup up in Costa Rica under this system, in order to have incentives that are in accordance with the regulations of the World Trade Organization (WTO).