Explore the Benefits of Operating in Evolution Free Zone.
Discover the tax advantages, connectivity, and skilled talent pool offered by Evolution Free Zone in Costa Rica
January 2025. – In an increasingly competitive business landscape, free trade zones have emerged as vital components in the strategy of numerous companies. In Costa Rica, these special economic areas not only offer significant tax and operational advantages, but also create unique opportunities for growth and expansion. According to the Costa Rican Foreign Trade Promotion Agency, by 2023 86 companies had established operations in free trade zones beyond the Greater Metropolitan Area.
Located in the Western Region of Alajuela, Evolution Free Zone is home to six global leaders in the Medical Device and Smart Manufacturing sectors. Beyond our state-of-the-art facilities, this region offers strategic advantages, such as economic benefits, exceptional connectivity and logistics, and access to a highly skilled talent pool.
Economic Advantages
One of the primary attractions of operating in a free trade zone is the array of tax exemptions available to businesses. In 2022, Costa Rica enacted the “Law for Strengthening Territorial Competitiveness to Promote Investment Attraction Outside the Great Metropolitan Area,” which provides bonus incentives for companies establishing operations outside the Central Valley.
At Evolution Free Zone, Smart Manufacturing and Medical Device companies can benefit from special tax incentives that can provide up to 12 years of full income tax exemption, plus an extra 6 years of partial exemption for qualifying companies. Some of the benefits include:
- 100% exemption from customs duties on imports and exports.
- 100% exemption from withholding tax on royalties and fees (statutory tax up to 25%).
- 100% exemption from income tax on interest (statutory tax is 8%).
- 100% exemption from sales tax on local purchases of goods and services (statutory tax is 13%).
- 100% exemption from stamp duty (statutory tax is 1%).
Connectivity and Logistics
Trade routes, ports, and airports are crucial for companies that rely on logistics for their operations. Evolution Free Zone is strategically located with direct access to the North Inter-American Highway (Route 1), enabling seamless connectivity to the country’s primary highways and ports.
Additionally, our park is just 15 minutes from Juan Santamaría International Airport, and within 30 minutes of key cities in the Western Region, home to a growing pool of skilled talent. This connectivity facilitates efficient logistics, time savings, and supply chain management, enhancing operational efficiency.
Top-Tier Talent Pool and Quality of Life
Located in Alajuela, Costa Rica, Evolution Free Zone is positioned in a region celebrated for its exceptional talent pool, where highly skilled people are trained to deliver innovative solutions for global companies. The area is strengthened by renowned public universities that have significantly increased the number of STEM graduates since 2014, enriching the local workforce.
Additionally, a variety of private educational institutions contribute to a well-rounded technical and academic foundation, cultivating top-tier talent for industry needs.
Moreover, areas beyond the urban core tend to be less congested, thus creating a more balanced living environment for employees. These regions often offer a more accessible cost of living, supporting competitive salaries, and enhancing employee well-being.
According to El Financiero, a well-regarded Costa Rican media outlet, new free trade zones in the Western Region of Alajuela are drawing increased real estate development to meet the rising demand.
A Strategic Decision
Numerous companies have flourished by establishing operations in free trade zones outside the metropolitan core. This is clearly exemplified by the six global companies currently setting up operations in Evolution Free Zone.
If you are considering expanding your business, our High-Tech Business Park can be the strategic decision that propels your success.
