In May 2020, the Costa Rican Congress approved, through a formal interpretation of the law, that the beneficiary companies of the Free Trade Zone (herein FTZ) are exempt from the Property Tax for ten years from the start of operations.

In 1990, the FTZ Law established the exemption from Real Estate tax. However, in 1995 that tax was transformed into the Property Tax. In light of the above, some municipalities took advantage of this confusion to collect this tax from the FTZ companies.

After many years of conflicts, the discussion has been resolved by the congressmen, and it was determined that the companies of the FTZ are exempt from this tax. Consequently, those companies that have paid the tax may claim the amount paid retroactively from the respective municipalities.

The Free Trade Zones team of Dentons Muñoz can advise and give you the necessary legal support to claim these tax benefits. Do not hesitate to contact our Tax Department for more information about the scope and implications of this new interpretation.