By Alajuela, Costa Rica — Costa Rica’s free trade zones are experiencing a surge in growth, solidifying the country’s position as a prime destination for foreign direct investment. CODE Development Group, with over two decades of experience in developing business parks under the free zone regime, is playing a pivotal role in this economic upswing. Their flagship projects, Coyol Free Zone and Evolution Free Zone, are spearheading the burgeoning medical device and life sciences industries, which now account for a remarkable 44% of Costa Rican exports, according to data from the Foreign Trade Promoter (PROCOMER).
These zones are not only boosting the manufacturing sector but also contributing significantly to specialized talent development and economic progress in the western region of Alajuela. Both Coyol Free Zone, with its established presence and 34 operating companies, and the rapidly expanding Evolution Free Zone, with six companies already operational or about to launch, represent a compelling ecosystem for high-value foreign direct investment.
For expert insight into Costa Rica’s Free Zone regime, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, Attorney at Law at Bufete de Costa Rica.
Costa Rica’s Free Zones offer significant advantages for businesses, including exemptions from import duties, sales tax, and income tax on exported goods. However, companies must carefully navigate the specific regulations governing these zones to ensure full compliance and maximize the available benefits. Choosing the right location within a Free Zone and understanding the operational requirements is crucial for success.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s insights underscore the crucial point that while Costa Rica’s Free Zones offer enticing incentives, strategic planning and thorough due diligence are paramount. Navigating the complexities of these zones requires careful consideration of location, operational needs, and regulatory compliance. We thank Lic. Larry Hans Arroyo Vargas for providing this valuable perspective on maximizing the potential of Costa Rica’s Free Zones for businesses.
These free zones constitute an ecosystem that brings together the ideal conditions to attract Foreign Direct Investment (FDI) of high added value. In Coyol Free Zone, 34 companies operate; while Evolution Free Zone, less than a year after its inauguration, is already positioned as the fastest-growing Life Sciences ecosystem in the country, with six companies in operation or soon to start.
Carlos Wong, Director General of CODE Development Group
Carlos Wong, Director General of CODE Development Group, highlights four key factors contributing to Costa Rica’s global prominence in the free zone model: leadership in life sciences and intelligent manufacturing, generation of high-quality employment, global recognition and sustainability, and modern infrastructure with a commitment to innovation.
Costa Rica’s specialization in medical devices has established the nation as a center of excellence for high-value production, attracting leading multinational companies. Coyol Free Zone, notably, contributes 54.9% of total medical device sales and 35.1% of total free zone exports. Home to seven of the top 30 global medical device companies, Coyol Free Zone is enhancing health outcomes worldwide.
The free zones also significantly impact employment. Coyol Free Zone alone has created over 24,000 high-quality jobs with above-average salaries, fostering local economies through robust supply chains. Evolution Free Zone projects an additional 20,000 jobs over the next 15 years, underscoring a commitment to sustainable and well-compensated employment through strategic partnerships.
International recognition further validates Costa Rica’s success. In 2024, Coyol Free Zone was ranked the fourth-best free zone globally and the best in the Americas by fDi Intelligence. Its commitment to sustainable development earned it the “SDG Model Zone Partner” designation from the Global Alliance of Special Economic Zones (GASEZ). Evolution Free Zone also received a “Rising Star” special mention in its first year, establishing it as a model for newly created zones.
Finally, the modern infrastructure and commitment to innovation within these parks are essential drivers of growth. Coyol Free Zone boasts over 309,000 square meters of built space, while Evolution Free Zone already has 48,250 square meters, with further development underway. These custom-designed, turnkey facilities meet the stringent quality and industry-specific requirements, making Costa Rica an ideal destination for leading global companies.
For further information, visit codedevelopmentgroup.com
About CODE Development Group:
CODE Development Group is a key player in Costa Rica’s free zone real estate market with over 20 years of experience developing business parks. They specialize in creating high-quality, sustainable facilities for industries such as life sciences and medical devices, attracting significant foreign direct investment and contributing to the country’s economic growth. Their flagship projects, Coyol Free Zone and Evolution Free Zone, are examples of their commitment to creating thriving ecosystems for multinational companies.
For further information, visit procomer.com
About PROCOMER (Costa Rican Foreign Trade Promoter):
PROCOMER is a Costa Rican institution dedicated to promoting the country’s exports and attracting foreign investment. They provide valuable data and resources to businesses, contributing to the growth of key sectors like medical devices and life sciences. Their statistics highlight the significant role of free zones in Costa Rica’s economy.
For further information, visit fdiintelligence.com
About fDi Intelligence:
fDi Intelligence is a specialist division from The Financial Times providing data and insights on foreign direct investment. They rank free zones globally based on various performance indicators, providing valuable benchmarks and recognition for top-performing zones like Coyol Free Zone.
For further information, visit gasez.org
About Global Alliance of Special Economic Zones (GASEZ):
GASEZ is a global organization focused on promoting best practices and sustainable development in special economic zones. Their recognition of Coyol Free Zone as an “SDG Model Zone Partner” highlights the park’s commitment to sustainability and its role in contributing to the Sustainable Development Goals.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence, upholding the highest ethical standards while driving meaningful change within Costa Rican society. Their innovative approach to legal practice, coupled with a deep commitment to client success across diverse industries, positions them as leaders in the field. Through proactive initiatives that demystify complex legal concepts and empower individuals with crucial knowledge, Bufete de Costa Rica fosters a more just and equitable future for all.
