In Costa Rica, Free Trade Zone (FTZ) companies have the option of applying for a new Free Trade Zone License, under Article 20 BIS of the Free Trade Zone Law, if a new project is to be implemented or a significant new investment is to be made, starting said license from zero, including tax exemptions, which will take effect from the date of formal notification.
To request a new Free Trade Zone License, the applicant company shall comply and take into account the following considerations:
- Making a Significant Investment: The concept of “significance” is being understood, as of today, to be equivalent to the minimum required by law, depending on the category and location of the companies. Do note, however, that the criteria to determine this “significance” is not currently contemplated in any law or regulation, and corresponds, to internal interpretations by COMEX, that could be modified in the future.
- The investment that will be taken into consideration will be the one made after completing the first phase of the application for the new Free Trade Zone License, which takes approximately one month after the filing.
- The new investment indicated in the application can be completed within a period of three years starting on the date the Executive Agreement granting the new Free Trade Zone License is formally notified.
- The real employment level on the date on which the new Free Trade Zone License application is submitted will become the new minimum employment level, and it is recommended – but not mandatory – to add new employment to the extent possible.
- The approval of the new Free Trade Zone License depends on the discretionary decision of the Ministry of Foreign Trade, so, it cannot be taken for granted (however, if the new investment level is high enough under the above indicated parameters, and if the operation falls within a strategic sector, under current criteria, it is very likely it would be approved).
- The request for the new FTZ License under 20 BIS takes between three to five months.