Market Comparisons → Costa Rica
An objective overview of Costa Rica as a manufacturing destination, drawing from PROCOMER, CINDE, and U.S. Department of State Investment Climate Statements.
Costa Rica is a signatory to the Dominican Republic–Central America Free Trade Agreement (CAFTA-DR), in force with the United States since January 2009. CAFTA provides duty-free access to the U.S. market for qualifying Costa Rican manufactured goods, subject to rules of origin requirements.
Costa Rica’s free trade zone regime operates under Law 7210 (1990), updated by Law 8794 (2010) and most recently by Law 10234 (2022), which expanded incentives for investments located outside the Greater Metropolitan Area (GMA) (PROCOMER).
Free Zone Tax Structure (CINDE)
Large manufacturing projects (investment exceeding $10M USD, minimum 100 employees): 0% corporate income tax for a defined initial period, with renewal provisions.
Standard free zone operations: Preferential 6% corporate income tax rate for 8 years, followed by 15% for an additional 4-year period — compared to Costa Rica’s statutory rate of 30%.
Outside the GMA: Enhanced incentives apply under Law 10234 (2022) for operations established in regions outside Greater San José.
Costa Rica has built a high-value manufacturing ecosystem over three decades of targeted investment promotion. Global operators with established operations include Boston Scientific, Abbott, Medtronic, Baxter, and Establishment Labs in medical devices; DHL, Amazon, and Western Union in services; and multiple aerospace component manufacturers. The medical device sector is Costa Rica’s largest goods export category.
Strengths
Limitations
Sources: PROCOMER Free Trade Zone Guide (2025); CINDE Free Trade Zone Regime Documentation; U.S. Department of State 2024 Investment Climate Statement — Costa Rica.
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