Published on and written by Cyril Jarnias
The Rise of Industrial Real Estate in Costa Rica
In Costa Rica, the rise of industrial real estate is symbolized by the growing appeal of free trade zones, these dynamic economic spaces that offer attractive tax and operational benefits.
Benefits of Free Trade Zones
Known for their crucial role in stimulating the economy, these strategically located zones facilitate the establishment of international companies, providing direct access to modern and competitive infrastructure.
Good to Know:
Free trade zones often offer tax exemptions and simplified administrative procedures, making them a preferred choice for foreign investors.
Opportunities for Investors
For investors, understanding these free trade zones becomes an unmissable opportunity, revealing the best real estate options that combine profitability and growth potential within an economically advantageous and strategically located framework.
Introduction to Free Trade Zone Benefits in Costa Rica
Free trade zones in Costa Rica are designated geographic areas where companies benefit from particularly advantageous tax and customs regimes, designed to attract foreign investment, stimulate innovation, and boost the national economy.
Main Benefits for Companies:
- Tax Incentives:
- Full or partial corporate tax exemption for 8 to 12 years, renewable under certain conditions.
- Exemption from VAT and customs duties on imports of raw materials, equipment, and intermediate goods.
- Exemptions from various local and municipal taxes.
- Modern Infrastructure:
- Industrial parks equipped with state-of-the-art facilities, integrated logistics solutions, enhanced security, and shared services.
- Access to efficient transportation networks (proximity to ports, international airports, strategic highways).
- Sustainable development integrated into business park design.
- Facilitated Access to International Markets:
- Free trade agreements with over 50 countries, including the United States, European Union, and China.
- Simplified customs procedures and reduced export times.
Role in the National Economy:
- Attraction of Foreign Direct Investment (FDI)
- Creation of Skilled Jobs: over 80,000 direct jobs generated by more than 330 companies operating under this regime.
- Stimulation of Strategic Sectors: life sciences, medical technologies, technology services, advanced manufacturing, etc.
- Increase in Exports: over $8.6 billion USD in annual medical technology exports.
Examples of Successful Companies and Sectors:
| Company | Sector | Main Activity |
|---|---|---|
| Medtronic | Life Sciences | Medical Devices |
| Abbott | Life Sciences | Pharmaceutical Products |
| Boston Scientific | Medical Technologies | Implants and Equipment |
| Cardinal Health | Medical Technologies | Distribution and Logistics |
| Phillips | Technology | Medical Equipment |
Other Beneficiary Sectors: business services, engineering, electronics, smart manufacturing.
Location of Free Trade Zones and Real Estate Impact:
- Main free trade zones are located around the Central Valley (San José, Heredia, Alajuela), near major ports (Caldera, Limón) and Juan Santamaría International Airport.
- Notable examples: Coyol Free Zone (specialized in medical devices, recognized as the best in the Americas), Evolution Free Zone (new technology park under development).
- Their presence stimulates industrial real estate development: construction of business parks, warehouses, modern offices, and related infrastructure, leading to land value appreciation in the affected areas.
Summary of Benefits for Companies:
- Major tax optimization
- Access to specialized labor
- State-of-the-art logistics and technological infrastructure
- Export platform to international markets
- Stimulation of innovation and sector growth
In summary
Costa Rican free trade zones are a pillar of economic development, offering companies an optimal fiscal, technological, and logistics environment to grow, export, and innovate, while actively participating in job creation and transforming the country’s industrial landscape.
Good to Know:
Free trade zones in Costa Rica offer companies attractive tax incentives, such as income tax exemptions and other tax breaks, while modern infrastructure and facilitated access to international markets make them a preferred choice for foreign investors. These zones significantly contribute to local job creation and attract thriving sectors like technology and medical manufacturing, with companies such as Intel and Boston Scientific thriving here. Primarily located near the capital San José and along the Pacific coast, these free trade zones support rapid industrial real estate development, thereby strengthening the country’s competitiveness in the region.
Why Invest in Industrial Real Estate in Costa Rica?
Costa Rica offers growing economic opportunities, particularly in the industrial sector, thanks to an attractive legislative framework and an ambitious tax incentive policy.
Main factors favoring industrial investment in Costa Rica include:
- A stable and business-friendly legislative framework
- Major tax incentives through free trade zones
- Continuous development of logistics and energy infrastructure
- Remarkable accessibility to renewable natural resources
- Political stability recognized regionally
- A dynamic industrial real estate market supported by the rise of international trade
Tax Incentives and Free Trade Zones
The free trade zone regime is a central asset of Costa Rica’s economic strategy.
| Advantage | Detail |
| Profit tax exemption | Up to 100% for several years depending on the project |
| Import duty exemption | On raw materials, machinery, equipment |
| Administrative simplification | Accelerated procedures for company creation |
| Privileged access to international markets | Over 50 trade agreements in effect |
Over 760 international companies are established in these zones, including Intel (microprocessors), Boston Scientific (medical devices), and Procter & Gamble (shared services). In 2024, industrial exports from free trade zones accounted for over 60% of the national total.
Infrastructure Development
The state is heavily investing in:
- Port expansion (notably Moín on the Caribbean coast)
- Modernization of the road network
- Strengthening of the electrical grid powered by over 98% renewable energy
These efforts significantly improve industrial logistics while reducing operational costs.
Accessibility to Natural Resources
Abundant availability of green energy and water positions Costa Rica as a competitive site for industries requiring a reduced carbon footprint. This orientation aligns with its international image focused on sustainability.
Political Stability and Industrial Real Estate Growth
The country’s solid democracy ensures legal security and regulatory predictability. The industrial real estate market directly benefits:
- Annual growth projected higher than that of main trading partners (+3.9% expected for 2025)
- Continuous increase in rental demand linked to the establishment of international players
- Rapid development of new industrial parks meeting global standards
Recent concrete examples:
- Expansion of the Coyol industrial park dedicated to the medical sector
- Construction of modern logistics warehouses around San José facilitating regional integration
Synthesized List of Major Assets for Foreign Investors
- Powerful tax incentives (free trade zones)
- Transparent legislative environment
- High-performance infrastructure adapted to international trade
- Accessible clean energy resources
- Enduring political stability
- High potential of the industrial real estate market
This context positions Costa Rica as a strategic, unmissable destination for any company seeking to establish or expand industrial operations in the heart of Central America.
Good to Know:
Investing in industrial real estate in Costa Rica offers significant economic opportunities thanks to an attractive legislative framework and tax incentives in free trade zones, which reduce business burdens. The country has experienced rapid infrastructure development, facilitating access to natural resources and improving logistics. In 2023, Costa Rica recorded a 10% increase in foreign investment in its industrial sector, reflecting political stability and the country’s growing appeal in international trade in Central America. For example, the Coyol Free Zone, specialized in medical devices, continues to attract large companies thanks to these advantages, ensuring promising profitability for savvy investors.
The Best Free Trade Zones for Logistics Warehouses
The best free trade zones for logistics warehouses in Costa Rica stand out for their strategic positioning, quality infrastructure, and the tax benefits they offer.
Key Geographic Locations of Free Trade Zones
| Free Zone | Province | Airport Proximity | Port Proximity | Major Road Access |
|---|---|---|---|---|
| Coyol Free Zone | Alajuela | Juan Santamaría | Pacific/Atlantic Ports | Inter-American Highway |
| The Green Park Free Zone | Alajuela | Juan Santamaría | Pacific/Atlantic Ports | FMA Highway Network |
| Metro Free Zone | Heredia | Juan Santamaría | Pacific/Atlantic Ports | GMA Highway Network |
| Puntarenas Free Zone | Puntarenas | Distant | Puerto Caldera (10 km) | Pacific Highway |
Transport Infrastructure Accessibility
- Airports: Main free trade zones, such as Coyol and The Green Park, are located near Juan Santamaría International Airport, facilitating rapid import-export of goods.
- Seaports: Puntarenas Free Zone stands out for its proximity to Puerto Caldera port, the main access point for maritime freight on the Pacific coast.
- Road Network: All these zones benefit from direct access to major national highways, optimizing domestic distribution and export.
Accessibility to Public Services
- Electricity, Water, Telecommunications: Free trade zones offer modern infrastructure, with reliable supply of electricity, water, and high-speed telecommunication services, ensuring continuity of logistics operations.
- Integrated Logistics Support: Several zones, like Coyol, integrate customs management and advisory services, facilitating the entire logistics chain.
Availability of Skilled Labor
- Collaboration with local universities to train specialized labor.
- Abundant and qualified labor for logistics, industrial, and technology sectors.
- Facilitated access to continuous training programs tailored to company needs.
Tax and Commercial Incentives
- Full or partial exemption from customs duties, income taxes, import/export taxes, and local taxes for up to 12 years, renewable based on investment criteria.
- Simplified customs procedures and reduced export times.
- Facilitated access to support services and shared infrastructure.
Examples of Reference Industrial Parks or Free Trade Zones
- Coyol Free Zone (Alajuela): Hosts global leaders like Medtronic, Abbott, and Philips. Stands out for its modern facilities, airport proximity, and environmental and social commitment.
- The Green Park Free Zone (Alajuela): Awarded for its LEED and EDGE certifications, it targets logistics industries seeking sustainable solutions.
- Metro Free Zone (Heredia): Offers a diversity of services, from storage to logistics subcontracting, with quick access to the capital.
- Puntarenas Free Zone: Ideal for maritime logistics due to its direct proximity to Caldera port.
Why These Zones Stand Out
- Strategic positioning between the country’s main transportation axes.
- Integrated logistics ecosystem with high-value-added support services.
- Stable and favorable regulatory environment for foreign investment.
Statistics and Recent Case Studies
- Coyol Free Zone has generated over 20,000 direct jobs and hosts more than 30 international companies in logistics and advanced manufacturing.
- The Green Park Free Zone, although newer, attracts companies seeking to combine logistics performance and environmental sustainability.
- Companies such as Medtronic and Philips cite proximity to the airport and ports, infrastructure quality, and speed of customs procedures as key factors for their success in Costa Rica.
Key Strengths to Remember
- World-class infrastructure for logistics and distribution.
- Facilitated access to international markets via ports and airports.
- Abundant skilled labor adapted to logistics needs.
- Attractive tax incentives favoring company establishment and expansion.
- Concrete success examples illustrating the attractiveness and competitiveness of Costa Rican free trade zones for logistics operations.
Good to Know:
In Costa Rica, the Coyol Free Zone stands out for its exceptional logistics infrastructure, benefiting from strategic proximity to Juan Santamaría International Airport and the ports of Caldera and Limón, thus facilitating goods transport. Coyol also offers connectivity to major highways and has reliable public services such as electricity and water. Skilled labor is abundant here, which, combined with attractive tax incentives, makes this zone a preferred choice for companies like Moog Medical and Medtronic, which have achieved notable growth here. Additionally, the Zona Franca Metropolitana industrial park, located near the capital San José, is prized for its access to advanced technological infrastructure and its innovation environment, supported by unique commercial advantages that strengthen the country’s logistics competitiveness.
Optimizing Industrial Real Estate Yield in Costa Rica
Key strategies to optimize the yield of industrial properties in Costa Rica’s free trade zones:
- Select a strategic location:
Proximity to ports, international airports, and major logistics routes maximizes exchange speed and reduces transport costs. Zones like Coyol, recognized as the best free trade zone in the Americas, illustrate the advantage of a strategic location for attracting medical and technology sector companies. - Invest in high-quality infrastructure:
Investors favor state-of-the-art industrial facilities offering:
- Advanced digital connectivity
- 24/7 security
- Access to sustainable water and energy management services
- Spaces adapted to high-tech manufacturing
- Leverage tax incentives:
Free trade zones offer major tax benefits:
- Full or partial corporate tax exemption
- VAT exemption on imported goods and services
- Elimination of customs duties
- Reduction of other local taxes for several consecutive years
- Align real estate offerings with market trends:
- Sustainability: Strong demand for eco-certified buildings (LEED, smart energy management, carbon footprint reduction).
- Advanced Technology: Growing demand for spaces compatible with automation, robotics, and smart manufacturing.
- Flexibility: Modular layouts to accommodate rapidly evolving industrial needs.
Summary Table of Optimization Factors:
| Key Factor | Impact on Yield | Implementation Examples |
|---|---|---|
| Strategic Location | Reduced logistics costs, increased attractiveness for investors | Port proximity, road access, Coyol Zone |
| Quality Infrastructure | Rental value appreciation, tenant retention | LEED-certified buildings, technological equipment |
| Tax Incentives | Improved net profitability | Tax exemptions, elimination of customs duties |
| Sustainable and Tech Trends | Real estate asset appreciation | Installation of solar panels, facility automation |
Examples of Companies That Maximized Their Yield:
- Medtronic, Abbott, Phillips, Boston Scientific, Cardinal Health
These international groups have established their production units in the Coyol Free Zone. They leveraged:
- logistics proximity,
- state-of-the-art infrastructure,
- advantageous tax regime,
- and availability of skilled labor specifically trained for high-tech industries.
- Technology Services and Life Sciences Companies
Over 330 companies in these sectors utilize the free trade zone regime to optimize their exports and cost management.
Important Points to Highlight:
The success of an industrial investment in Costa Rica’s free trade zones relies on the synergy between an optimal location choice, access to high-end infrastructure, smart utilization of tax incentives, and continuous adaptation to global industrial market trends.
Good to Know:
To optimize the yield of industrial properties in free trade zones in Costa Rica, it is essential to choose a strategic location that maximizes access to major transportation networks and seaports, which improves logistics efficiency. The quality of infrastructure, such as well-maintained roads and modern facilities, plays a crucial role in attracting and retaining tenants. Tax incentives offered by the government, such as exemptions from customs duties and corporate taxes, are significant assets for reducing operational costs and stimulating profitability. With increased demand for sustainable and technologically advanced facilities, it is beneficial to invest in eco-friendly buildings and smart factory solutions. Companies like Intel have successfully leveraged these advantages by developing production sites within these free trade zones, thereby optimizing their competitiveness in the global market.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
