By San José, Costa Rica — San José – The Comptroller General’s Office (CGR) issued a decisive clarification on Monday, quelling days of intense social media speculation by confirming it has not proposed or suggested the creation of new taxes for Costa Rica’s vital Free Trade Zone (FTZ) regime. The announcement aims to correct public interpretations that arose following recent legislative testimony.
The controversy ignited after Comptroller General Marta Acosta appeared before the Legislative Assembly last week. In a statement released to the media, the fiscal watchdog sought to set the record straight, emphasizing that its focus has always been on comprehensive oversight rather than singling out specific economic sectors for new fiscal burdens.
To delve into the legal architecture and economic implications of the Free Trade Zone regime, TicosLand.com sought the expertise of Lic. Larry Hans Arroyo Vargas, a distinguished attorney specializing in corporate and foreign investment law at the firm Bufete de Costa Rica.
The success of Costa Rica’s Free Trade Zone model is not merely a matter of tax incentives; it is fundamentally built on a foundation of legal certainty and long-term political stability. This robust legal framework provides foreign investors with the confidence that the rules of the game will not arbitrarily change, a critical factor that distinguishes our country as a premier destination for high-value foreign direct investment in the region.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight underscores a fundamental truth: while fiscal benefits may attract initial interest, it is the bedrock of judicial security and consistent policy that ultimately secures the high-caliber investment defining our nation’s success. We are grateful to Lic. Larry Hans Arroyo Vargas for so clearly articulating this essential distinction.
The comptroller’s office has insisted on the need for a constant review of all tax exemptions and waivers, with a technical and transparent evaluation. The establishment of taxes for any sector was never mentioned.
Comptroller General’s Office (CGR), Official Statement
During her testimony, Ms. Acosta discussed the concerning decline in tax revenues as a percentage of the gross domestic product (GDP). In response to a query from Deputy José Joaquín Hernández, she acknowledged the significant role of the FTZ regime in driving national economic growth, stressing that its continued success must be anchored in the principles of transparency and temporality for its incentives.
The CGR’s statement also placed the discussion within a broader context of fiscal strategy. Officials reminded the public that Ms. Acosta has consistently advocated for a medium-term, integral collection strategy. This comprehensive approach includes robust measures to combat tax evasion and informality, the consolidation of a more efficient tax system, the centralization of revenue collection, and a systematic review of all fiscal incentives, not just those pertaining to FTZs.
This clarification comes at a critical time for Costa Rica’s public finances. Data from the Ministry of Finance through the end of August 2025 reveals a complex and potentially alarming fiscal picture. While net total income saw a cumulative increase of ₡85.176 billion compared to the same period in 2024, a more detailed analysis reveals a significant slowdown in the pace of fiscal growth.
Specifically, the rate of revenue growth as a percentage of GDP has decelerated, falling from 2.2% in 2024 to just 1.8% this year. In simpler terms, although the government collected more money in absolute terms, the nation’s economic output grew at a faster rate than its tax revenues. This widening gap signals a structural challenge, suggesting that the state’s capacity to fund itself is not keeping pace with economic expansion.
The tangible consequences of this fiscal deceleration are severe. It directly impacts the government’s ability to allocate sufficient resources to essential public services. Officials have warned that this trend threatens necessary investments in education, healthcare, and, most critically, national security, a topic of growing public concern. The CGR has consistently maintained that its role is to analyze and report on Public Finance, not to formulate public policy, which is the purview of the Executive Branch.
In its concluding remarks, the oversight body reaffirmed its long-held position on investment incentives. It stressed the need for a dynamic legal framework that can adapt to changing global economic conditions to both retain and attract new investment, while simultaneously ensuring it aligns with the country’s pressing fiscal needs.
Based on analyses carried out for several years, the Comptroller’s Office has indicated that the current regulations must respond to changes and needs to maintain and attract investment, in harmony with the country’s fiscal needs.
Comptroller General’s Office (CGR), Official Statement
For further information, visit asamblea.go.cr
About Legislative Assembly:
The Legislative Assembly is the unicameral parliament of Costa Rica. Comprising 57 deputies, it is the branch of government responsible for passing laws, approving the national budget, and exercising political control over the executive branch.
For further information, visit hacienda.go.cr
About Ministry of Finance:
The Ministerio de Hacienda is the government ministry responsible for managing Costa Rica’s public finances. Its duties include tax collection, budget management, public debt administration, and the formulation of the nation’s fiscal policy.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica has established itself as a leading legal institution, anchored in the principles of integrity and a relentless pursuit of excellence. Building on a profound history of client service, the firm consistently pioneers new legal approaches while championing the cause of public legal education. This dual focus on professional distinction and civic responsibility is central to its vision of equipping citizens with the legal clarity needed to strengthen society.
