In the first days of April 2018, the Legislative Branch approved the reform of the Free Zones Law (File N ° 20.464), in such a way that the concept of Expanded Metropolitan Area (GAMA for its acronym in Spanish) is replaced by the concept of the Greater Metropolitan Area (GAM).

The Free Zone Law provides greater benefits to companies located outside of Expanded Metropolitan Area (GAMA) than those located within the Central Valley. This new reform entails the reduction of this area by excluding the municipalities of Naranjo, Grecia, Valverde Vega (Sarchí), San Ramón and Palmares, also known as Zona Occidente (West Zone). This new reduced Central Valley section will be known as the Greater Metropolitan area (GAM).

This modification will provide better Free Trade Zone Regime benefits to companies that settle in West Zone. This will allow for many workers located in the area the job opportunities in their own communities, decreasing the daily flow of people moving from these populations to the GAM.

In accordance with the University of Costa Rica´s County Competitiveness Index, Zona Occidente has a high human development, and good schooling among the population. For example, Grecia has one of the highest concentrations of university professionals in Costa Rica, and is only 45 minutes from downtown San Jose. From San Ramón to Grecia there are a large number of companies offering services and goods.

Dentons Muñoz celebrates this news as an opportunity to attract greater development to areas outside the GAM, allowing companies better benefits and provide employment to the inhabitants of the area as well as reducing vehicular congestion from the Zona Occidente to the GAM.

Dentons Muñoz´ team of experts will provide the necessary legal support for you to get access to these Free Trade Zone Regime benefits. Contact our International Trade Department for more information on the implications of this new opportunity.