Globalaw - Home
ContactMember Login
Our social network
Free Trade Zones in Costa Rica: Growth Engine Under New Challenges
Insights

Free Trade Zones in Costa Rica: Growth Engine Under New Challenges

By Philip André, Partner, Lexincorp , 24 Mar 2026

Costa Rica has established itself as an attractive destination for foreign investment thanks to its political stability, qualified human capital, and a solid legal framework that provides security to investors. According to the Costa Rican Foreign Trade Promotion Agency (PROCOMER), 89% of employment related to free trade zones comes from companies with foreign capital, highlighting the direct impact of international investment on local job creation. This model not only promotes economic development but also strengthens Costa Rica’s competitiveness.

Between 1990 and 2024, the number of companies operating under the free trade zone regime increased from 56 to 626, demonstrating significant sector expansion. During this period, free trade zone companies generated a cumulative economic value of USD 13.893 billion, representing 15% of Costa Rica’s national GDP. In comparison, in 1990 their contribution amounted to only USD 215 million (1% of GDP), underscoring the growing strategic importance of free trade zones for the Costa Rican economy.

“Between 1990 and 2024, the number of companies under the free trade zone regime increased from 56 to 626, demonstrating significant sector expansion.”

A Success Model in Continuous Development

Since its introduction in the 1990s, Costa Rica’s free trade zone regime has evolved from an export-oriented industrial system into an advanced ecosystem for innovation, services, and high-tech manufacturing. According to the PROCOMER study “Free Trade Zone: 35 Years Building Value for Costa Rica”, the country has experienced sustained growth under this system.

Innovation and Technological Security

Over the past three decades, high-tech sectors within free trade zones have experienced exponential growth, bringing new regulatory challenges. Maintaining a balance between openness, innovation, and technological sovereignty requires close cooperation between the public and private sectors to safeguard national security without undermining international competitiveness.

This approach ensures that technological development and foreign investment continue contributing sustainably to economic growth.

Legal Framework and Tax Incentives

The Free Trade Zone Regime Law in Costa Rica establishes several categories of companies eligible for incentives, including manufacturing and export-oriented companies, service providers, research institutes, healthcare and audiovisual companies, as well as enterprises that promote economic development outside the Greater Metropolitan Area of San José.

The legal framework aims to attract new investment, foster technological innovation, and strengthen regional competitiveness—under modalities that ensure real job creation and modernization of production processes.

For national manufacturing companies operating under this regime, legislation allows access to tax exemptions and benefits regardless of export levels. According to Article 20, subsection d) of Law No. 7210 (Free Trade Zone Regime Law), companies are exempt for a period of ten years from the start of operations from capital taxes, net worth taxes, property taxes, and real estate transfer taxes.

In other words, incentives are not tied to export performance but to the strategic or territorial importance of the investment.

However, if goods produced under the free trade zone regime are sold in the domestic market, all corresponding taxes must be paid, applying the same customs procedures as imports from abroad.

In this context, the law introduces a key customs principle: tariffs apply only to imported raw materials used in production, not to the total value of the final product. This differentiated treatment—regulated under Article 21, subsection a) of the Free Trade Zone Law—ensures that tariffs reflect only the imported portion of the production process, in line with Costa Rica’s international obligations, and promotes a balanced, competitive, and transparent investment policy.

“Tax incentives are not linked to export performance, but to the strategic or territorial importance of the investment.”

Internal Competitiveness: Structural Challenges

According to the Costa Rican Free Trade Zone Association (AZOFRAS), in order to maintain growth within the regime, the country must address key national competitiveness factors, including:

  • Flexible labor regulations that allow operational adaptability in key industries;
  • Exchange rate fluctuations affecting financial planning for exporting companies;
  • Energy costs, which directly impact industrial production;
  • High social security contributions influencing wage competitiveness and talent planning;
  • Logistics and digital infrastructure, essential for efficiency and global market connectivity;
  • Human capital development, crucial for innovation and productivity in high-tech sectors.

Free trade zones represent a central pillar of Costa Rica’s economic model. Their future depends on the country’s ability to anticipate risks, adapt to global changes, and strengthen cooperation between government, business, and society. They represent more than a special tax system; they embody a development vision based on innovation, stability, and openness.

--

For more information, contact:

Image

Philip André, Partner

Lexincorp Central American Law Firm, San José

www.lexincorp.com

Latest News

news
22 Mar 2026

Member Spotlight: Ulysses, Ukraine

When a law firm consistently wins over 95% of its cases, people take notice.

Ulysses, an independent law firm based in Kyiv, Ukraine, operates at the intersection of global legal systems to help national and multinational clients reach their goals in high-stakes disputes, public policy issues and complex transactions.

Known for precision, agility, and strategic depth, Ulysses lawyers skillfully apply both domestic and international law, as well as dispute-resolution mechanisms, to deliver effective outcomes.

Bold Thinking, Client-First Strategy

Ulysses defines itself through bold, results-driven representation.

Its ethos? “We win disputes. We close deals.”

Clients turn to Ulysses when the stakes are high politically, commercially, or reputationally. Many choose the firm because their legal issues cross borders or involve complex regulatory challenges.

Ulysses’ client relationships showcase its client-first approach. Whether helping a global corporation navigate a multibillion-dollar M&A deal or representing an investor in a dispute involving international banking regulations, Ulysses is known for relentlessly pursuing outcomes that serve the client’s best interests.

Globally Recognized Dispute & Transaction Expertise

Ulysses’ Disputes practice is built around cases that often influence public policy or international relations, including arbitration and alternative dispute resolution, complex litigation, investor-state disputes, and public international law.

The firm’s transactions and regulatory practice supports major commercial activities, including corporate and M&A, banking and finance, regulatory, and taxation for companies like Porsche Ukraine, EnergoGroup, and DPWorld.

The firm’s excellence has been recognized by leading authorities such as Chambers & Partners, IFLR1000, The Legal 500, WWL, and Liga Zakon.

A Leader in International Law

Ulysses is a leading expert in public international law and treaty-based disputes, garnering recognition in national and international media. Perhaps the strongest testament to the firm’s capabilities is its track record in investor-state matters:

Ulysses has negotiated and finalized 75% of publicly known investor–state settlements with Ukraine. These cases often involve delicate diplomatic issues, requiring a combination of legal knowledge, strategic negotiation skills, and a nuanced understanding of governmental processes.

The firm’s cross-border practice supports clients in the United States, the United Kingdom, the Netherlands, and other jurisdictions, advising on financial transactions, navigating regulatory frameworks, or structuring innovative banking services in Ukraine. Its team continuously monitors regulatory shifts, ensures compliance, and helps clients build internal policies and product standards that meet both domestic and international requirements.

Expanding International Capabilities Through Globalaw

Ulysses’ experience in multijurisdictional matters made its 2022 entry into Globalaw a natural step. The firm’s capabilities align seamlessly with the network’s mission: connecting top independent firms to help clients operate effectively across borders.

Through Globalaw, Ulysses has strengthened its ability to serve corporations, public policy stakeholders, and international entities whose matters often span multiple jurisdictions and regulatory frameworks. It allows Ulysses to support clients with deep local knowledge and coordinated global insight.

For more information, visit ulysses.law.

Insights
14 Mar 2026

Ireland: A Premier Legal Hub for Global Business

Ireland has established itself as one of the world’s most attractive jurisdictions for companies seeking legal certainty, efficiency, and internationally recognised dispute resolution mechanisms. Its combination of a common law foundation, EU membership, specialist courts, and growing technological capability makes it a compelling choice for international business.

A Stable, Predictable Common Law System

Ireland’s common law framework provides reliability through the doctrine of precedent, giving businesses clarity and reducing legal ambiguity. As an English-speaking jurisdiction, Ireland also offers seamless communication and a familiar legal environment for global companies.

An EU Member with Strong Cross-Border Enforceability

As part of the European Union, Ireland benefits from the supremacy of EU law and automatic EU-wide recognition of Irish judgments, with limited exceptions. The country is also a party to key international agreements, including the Lugano and Hague Conventions, thereby enhancing enforceability beyond the EU.

Efficient Courts and Cost-Competitive Litigation

Ireland offers a competitive cost regime compared with jurisdictions such as the UK and the US. The “costs follow the event” principle allows successful parties to recover fees, helping manage financial exposure.

The court structure supports efficient dispute resolution, with the High Court handling major commercial matters and the Circuit and District Courts managing lower-value disputes.

A Commercial Court Built for Speed and Complexity

Ireland’s Commercial Court is highly regarded for its expertise, strict case management, and fast-track procedures. Complex and high-value business disputes are fast-tracked, and more than 60% of cases conclude within a year. Specialist lists—such as Intellectual Property & Technology and Planning & Environment—ensure cases receive expert judicial attention.

A Modern, Streamlined Appeals Process

The Court of Appeal usually hears appeals within 3–5 months, supported by weekly case management sessions held in person and remotely. The Supreme Court focuses on cases of major public importance, processing applications quickly and listing accepted appeals without delay.

A Global Centre for Arbitration and Mediation

Ireland is a leading destination for alternative dispute resolution.

• Arbitration benefits from confidentiality, finality, the UNCITRAL Model Law, and Ireland’s status as a New York Convention signatory.

• Mediation enjoys success rates of 80% and statutory support via the Mediation Act 2017. Courts can also encourage mediation even after litigation begins.

Other ADR mechanisms, such as conciliation and adjudication, offer additional flexibility.

Innovation Driven Courts and Industry Expertise

Ireland is investing heavily in digital transformation. Legal professionals and judges possess deep expertise in sectors such as pharmaceuticals, life sciences, financial services, and technology—reflecting Ireland’s role as a global business hub.

A Supportive Restructuring Environment

Ireland’s insolvency and restructuring framework is creditor-friendly and flexible, with processes such as Examinership and the Small Company Administrative Rescue Process (SCARP) helping businesses navigate financial difficulty efficiently.

--

For more information, contact:

Image

Eamon Harrington

Partner & Head of CKT’s Healthcare and Litigation Departments

www.ckt.ie

news
24 Feb 2026

Member Spotlight: JJ Roca & Asociados, Dominican Republic

A Strategic Full-Service Firm with Regional & International Reach

Image

Founded in 1998 by Jaime Roca, JJ Roca & Asociados (ROCA) has evolved into one of the Dominican Republic’s leading full-service law firms, recognized for handling complex, high-value matters for both local enterprises and multinational corporations.

Over more than two decades, the firm has grown deliberately and strategically, building a multidisciplinary structure capable of addressing corporate, regulatory, transactional, dispute resolution, and intellectual property matters with equal depth. While mid-sized by market standards, ROCA operates with the sophistication, coordination, and technical rigor expected by international clients operating across multiple jurisdictions.

Today, the firm is trusted by global companies to navigate not only Dominican law, but to act as regional counsel navigating the broader Caribbean and Central American legal landscape.

Purpose Shapes Every Client Experience

ROCA’s culture reflects a firm where excellence is the standard, service is personal, and every client relationship is treated as a long-term partnership.

“Culture is both our identity and our strategy,” said Partner Sharin Pablo de Roca. “We define it as a commitment to excellence, lived through service, collaboration, and genuine human warmth, and as a philosophy that guides every aspect of the client experience.”

ROCA pairs technical expertise with a proactive, solutions-oriented mindset, where clients can expect clarity, responsiveness, and legal work of the highest quality, delivered by a team that understands their business and anticipates their needs.

The firm’s attorneys and staff approach each matter with diligence, integrity, and a deep sense of responsibility to clients’ goals. Responsiveness, precision, and thoughtful guidance are part of their daily discipline.

Sharin says the firm believes that exceptional client service is strengthened by how teams work internally. By fostering an environment where professionals collaborate effectively, support one another, and lead with purpose, the firm ensures that its clients receive not only strong legal representation but also a consistent, high-quality experience across all touchpoints.

A Multidisciplinary Platform Built for Complex Work

ROCA’s practice is anchored in Corporate, Litigation, and Intellectual Property, but its capabilities extend well beyond these pillars. The firm regularly advises on mergers and acquisitions, restructuring and insolvency, banking and finance, capital markets, tax, real estate, administrative and regulatory matters, competition, data protection, foreign investment, free-zone operations, immigration, energy and environmental matters, and sector-specific regulatory frameworks.

This breadth allows the firm to assemble integrated teams tailored to each matter, ensuring that clients receive coordinated advice aligned with their commercial and operational objectives.

Rather than operating in silos, ROCA’s structure enables seamless collaboration across disciplines — a critical advantage when handling cross-border transactions, regulatory strategy, or high-stakes disputes.

Trusted by Multinational and Institutional Clients

ROCA’s client portfolio reflects the confidence placed in the firm by sophisticated international companies and financial institutions.

The firm serves as regional counsel to The Coca-Cola Company and its affiliates for the management, prosecution and enforcement of their trademark portfolio across all 26 Caribbean jurisdictions, and routinely conducts regional due diligence for major marketing launches.

ROCA acts as multiregional counsel to Western Digital Technologies, Inc., managing trademark portfolios in the Dominican Republic and throughout Central America and the Caribbean, including assignments tied to global corporate reorganization strategies.

The firm acts as local counsel to Les Laboratoires Servier SAS and its subsidiary Biofarma, handling complex opposition and cancellation proceedings and expanding coordinated IP strategies beyond the Dominican Republic.

In the financial sector, ROCA represents Scotiabank in significant litigation matters, and has advised institutional investors in high-value acquisitions and restructurings.

In the restructuring space, the firm acted as local counsel to the fund led by Amzak Capital Management in the acquisition and merger of Tricom, Telecable Nacional, and affiliated companies — the first and largest restructuring of a Dominican company under Chapter 11 of the New York Bankruptcy Code.

In dispute resolution, ROCA represented Swatch AG of The Swatch Group in coordinated global trademark litigation relating to the “IWATCH” mark, aligning Dominican strategy with actions in multiple jurisdictions worldwide.

These matters reflect not only technical capability, but also the trust placed in the firm to manage sensitive, high-stakes, and cross-border work.

ROCA’s capabilities in handling complex, cross-border matters with consistency and sophistication are reflected in its recognition by Chambers, The Legal 500, IFLR, WTR, IP Stars and other leading legal directories.

Globalaw Catalyzes International Reach

Since joining Globalaw three years ago, ROCA has actively contributed to the network’s collaborative initiatives. Sharin Pablo de Roca leads the Globalaw IP Initiative, facilitating coordination among IP practitioners worldwide and strengthening cross-border relationships within the alliance. She also serves on Globalaw’s Membership Committee for the Latin American and Caribbean region.

The firm regularly collaborates with fellow Globalaw members on referrals involving corporate structuring, regulatory compliance, IP protection and strategy, franchise regulation, data protection, and contractual risk management.

As a recent example, ROCA recently advised a well-known international retail chain, introduced through the Globalaw network, on franchise regulatory requirements and the review of its franchise agreement for local compliance. Work on the corresponding trademark license agreement is underway.

“Globalaw membership is central to our ability to deliver seamless cross-border support. The collaboration, knowledge-sharing and referrals generated through the network enhance our international reach, deepen our practice capabilities, and allow us to offer clients truly global solutions with local insight,” Sharin said.

For more information, visit www.jjrocalaw.com.

news
22 Feb 2026

Chambers Guide Ranks Globalaw as a Band 1 Leading Law Firm Network for 6th Year

Globalaw, a leading network of approximately 80 independent law firms in over 60 countries, is pleased to announce it has once again been ranked as a Band 1 Leading Law Firm Network in the Chambers Global Guide for 2026. This is Globalaw’s sixth consecutive recognition. The network has also been ranked as a Leading Regional Law Firm Network in the Asia-Pacific region for the ninth year.

Image

Chambers and Partners is widely regarded as the world’s leading independent legal ranking and research organisation. Rankings are based on in-depth research and interviews with law firms, lawyers and their clients in more than 200 jurisdictions worldwide.

“Globalaw is a strategically assembled network, defined by the high-quality and integrated approach of our member firms,” said Globalaw President Peter J. Brown, Partner at Edwards, Kenny & Bray LLP in Canada. “We are proud to receive international recognition from Chambers and Partners for the network’s capacity to collaborate across jurisdictions and deliver exceptional depth and breadth of legal expertise in a comprehensive range of industries and practice areas.”

About Globalaw

Founded in 1994, Globalaw is a global band one Chambers-ranked leading network of approximately 80 independent law firms and 4,000 lawyers in over 60 countries. Our mission is to foster seamless legal collaboration among member firms and to help them deliver high-quality, cost-effective solutions to their clients worldwide. We take pride in our commitment to excellence, global reach, and innovative approach to legal services. Visit www.globalaw.net to learn more.