Simón Sauvé – Director, Costa Rica
For many years, the Free Trade Zone Regime has been one of Costa Rica’s most important tools for attracting foreign investment, generating quality employment, and strengthening productive development. More than a set of tax incentives, this regime forms part of a comprehensive strategy to integrate the country into global value chains and compete for productive capital in a highly dynamic world.
The design of the regime is based on a simple principle: the government offers exemptions and incentives to companies that commit to investing in the country, generating employment, contributing knowledge, and adding value to the economy. In return, each company assumes clear obligations, formalized in the Executive Agreement granting the benefits.
Over the years, multiple studies have shown that the incentives granted under the Free Trade Zone Regime do not represent a loss for the country. On the contrary, they are recovered—and even multiplied—through contributions such as social security charges, payroll taxes, local consumption, productive linkages, technology transfer, and human talent development. For this reason, their impact must be analyzed from a comprehensive perspective, not solely a tax one.
Companies operating under this regime, however, are immersed in a constantly changing global environment. Economic crises, supply chain disruptions, technological advances, shifts in demand, or corporate transformations often require adjustments to business models. In this context, demanding rigid compliance with commitments agreed years ago—possibly under very different global conditions—can become a risk both to investment and to the stability of the regime itself.
For this reason, Costa Rican regulations provide mechanisms that allow certain commitments to be adapted, always under technical criteria and institutional oversight. Both the Free Trade Zone Law and its regulations contemplate the possibility of adjusting deadlines, investment levels, and employment commitments, among other aspects, without altering the spirit of the regime.
Moreover, certain modifications may be implemented without requiring approval from the Executive Branch. These include changes to compliance timelines, relocation of facilities, or variations in operational area. The regulations expressly recognize that reasonable fluctuations in employment and investment may occur due to the nature of the business.
These adjustments are not discretionary concessions. They are tools designed to allow companies to adapt and continue operating sustainably in the country, protecting investment and employment in the long term, without compromising the transparency or credibility of the regime.
Ultimately, this reflects a vision grounded in competitiveness and economic realism. Costa Rica competes with many countries to attract and retain investment. Achieving this requires clear rules, legal stability, and, at the same time, the ability to adapt. The Free Trade Zone Regime does not seek only to attract investment; it is also designed to accompany and sustain it in a constantly evolving global environment, ensuring that Costa Rica remains a reliable and competitive destination for productive development.
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