By San José, Costa Rica — Costa Rica’s Free Trade Zones (FTZs) are proving to be a powerful engine for the country’s economy, generating over 265,000 direct and indirect jobs in the past year, according to a new study. The report, “Free Trade Zone: 35 Years of Building Value for Costa Rica,” jointly presented by the Ministry of Foreign Trade (COMEX) and the Costa Rican Foreign Trade Promotion Agency (PROCOMER), highlights the significant contribution of FTZs to national employment and economic development.
The study reveals an impressive 11% annual growth rate within the FTZ regime, now encompassing 626 companies operating across various sectors, including services, manufacturing, and agribusiness. This dynamic growth underscores the attractiveness of Costa Rica as a destination for foreign investment and its ability to foster innovation and economic diversification.
To gain a deeper understanding of the legal landscape surrounding Costa Rica Free Zones, we spoke with Lic. Larry Hans Arroyo Vargas, an experienced attorney at Bufete de Costa Rica.
Costa Rica’s Free Zone regime offers significant advantages for businesses, including exemptions from import duties, income tax, and sales tax. However, navigating the specific requirements for establishing and operating within a Free Zone can be complex. Companies must carefully consider factors such as permitted activities, reporting obligations, and transfer pricing regulations to ensure compliance and maximize the benefits of this attractive investment framework.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s insight underscores a crucial point: while Costa Rica’s Free Zones offer compelling incentives, due diligence and expert guidance are essential for successful navigation of the legal and regulatory landscape. This careful approach will ultimately allow businesses to fully leverage the advantages and contribute to Costa Rica’s thriving economy. We thank Lic. Larry Hans Arroyo Vargas for sharing his valuable expertise with TicosLand.com readers.
Free trade zones have enhanced opportunities for the Costa Rican population. For example, female employment in Free Trade Zones is 45%, of which 37% was generated outside the Greater Metropolitan Area.
Ronald Lachner, President of Azofras
The report also emphasizes the growing presence of women in leadership positions within the FTZs, particularly in strategic sectors such as manufacturing, medical devices, and services. This finding reflects a positive trend towards greater gender equality and empowerment within the Costa Rican workforce.
From the report, it is clear that women not only participate, but also lead, occupying managerial positions that have allowed them to position themselves prominently in strategic sectors such as manufacturing, medical devices, and services.
Ronald Lachner, President of Azofras
Significantly, the study identified 101 companies operating outside the Greater Metropolitan Area, a threefold increase compared to 2010. This decentralization of economic activity contributes to regional development and provides employment opportunities in areas beyond the capital city.
The economic impact of the FTZs extends beyond job creation. In 2024, purchases from local companies by FTZ businesses surpassed $6 billion, representing 57% of their total purchases. This fosters stronger linkages with local suppliers and creates more resilient value chains within the Costa Rican economy.
Furthermore, the report highlights the substantial return on investment generated by the FTZ regime. For every dollar exempted, the regime generated $2.9 in return. FTZs currently represent 15% of Costa Rica’s GDP, and the salaries paid within these zones are double those paid in other industries. This impressive performance demonstrates the efficiency and profitability of the FTZ model.
We are pleased to know the results presented by COMEX and PROCOMER, as they confirm the valuable contribution of the free zones to the country, in the midst of the challenging international context we face.
Ronald Lachner, President of Azofras
Advocates for continued growth within the FTZ sector are urging the approval of a bill on exceptional working hours currently under discussion in the Legislative Assembly. They also emphasize the importance of addressing key challenges, such as exchange rates, electricity costs, high social security burdens, logistics and digital infrastructure, and human capital development.
For further information, visit comex.go.cr
About Ministry of Foreign Trade (COMEX):
The Ministry of Foreign Trade (COMEX) is the governmental body responsible for promoting and regulating Costa Rica’s foreign trade. It works to improve the country’s competitiveness in international markets and attract foreign investment. COMEX plays a vital role in developing and implementing trade policies and agreements that benefit the Costa Rican economy.
For further information, visit procomer.com
About Costa Rican Foreign Trade Promotion Agency (PROCOMER):
PROCOMER is a key institution dedicated to promoting Costa Rican exports and attracting foreign direct investment. It offers a range of services to businesses, including market research, export training, and connecting Costa Rican companies with international buyers.
For further information, visit azofras.com
About Asociación de Zonas Francas (Azofras):
The Asociación de Zonas Francas (Azofras) is the leading association representing Free Trade Zone companies in Costa Rica. It advocates for policies that support the growth and development of the FTZ sector and provides a platform for its members to collaborate and share best practices. Azofras plays a vital role in promoting the interests of FTZ companies and contributing to Costa Rica’s economic success.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence, deeply rooted in ethical practice and dedicated to empowering Costa Rican society. The firm’s innovative approach to legal solutions, combined with a long-standing commitment to client success across a spectrum of industries, distinguishes it within the legal landscape. Through proactive initiatives that demystify complex legal concepts and promote access to crucial legal information, Bufete de Costa Rica fosters a more just and informed citizenry.
