Companies operating under Costa Rica’s Free Trade Zone Regime may purchase certain goods in the local market using the tax exemptions granted under Law No. 7210 and its implementing regulations. However, this tax benefit does not mean those goods can later be freely diverted to the domestic market without reviewing the tax consequences.
When a locally purchased good that benefited from an exemption stops being used within the regime, or the company intends to dispose of it in a way that effectively brings it into the domestic market, it may be necessary to settle the taxes that were originally not paid.
In local practice, this process is generally referred to as “nationalizing” locally purchased goods.
Why does this procedure exist?
The Free Trade Zone Regime allows its beneficiaries to purchase certain goods and services under special tax conditions. Law No. 7210 grants significant exemptions for goods required for the operation of companies under the regime, while its implementing regulations govern purchases made in the local market.
The key point is that the exemption is tied to the good’s authorized use.
For that reason, when that use changes, the original exemption should not be assumed to remain in place automatically.
The regulations to the Free Trade Zone Law establish that improper use of exempt materials, goods or services allows the Ministry of Finance to settle the taxes that went unpaid, in addition to pursuing any other actions available under the law.
Not every local purchase requires nationalization
This is probably the most important point.
Before starting any procedure, it is necessary to determine how the good was acquired and what is intended to be done with it.
The following situations are not equivalent:
- Selling an asset in Costa Rica.
- Transferring it to another company under the regime.
- Exporting it.
- Destroying it.
- Returning it to a supplier.
- Writing off inventory.
- Disposing of a fully depreciated asset.
- Or disposing of a good that was originally purchased with all taxes paid in full.
For example, if the good was purchased locally without using an exemption, there would, in principle, be no originally exempted taxes that need to be settled in connection with that purchase.
For that reason, the first question should not be “how do we nationalize the asset?” but rather:
Was this good actually acquired using a tax benefit, and what is the applicable legal treatment for the way we now intend to dispose of it?
That distinction avoids unnecessary tax settlements and, at the same time, reduces the risk of improperly disposing of goods that remain subject to the regime.
What should be reviewed before filing the request?
A proper review should reconstruct at least four elements.
- Origin of the good. The original invoice, supplier, purchase date and the mechanism used to apply the exemption must be identified.
- Tax benefit received. Which tax or taxes were originally exempted must be determined.
- Current status. Whether the good remains in inventory, is still a fixed asset, has been depreciated, is damaged, or will be sold, transferred, destroyed or put to another use must be established.
- Proposed destination. The tax consequence can vary substantially depending on what will happen to the good.
This documentary reconstruction is particularly important because Free Trade Zone companies have specific control obligations over goods that benefit from exemptions. Article 19 of Law No. 7210 requires keeping records of transactions involving those goods and allowing them to be audited by the competent authorities.
How is it currently processed?
According to information published by PROCOMER and current regulations issued by the Tax Administration (Dirección General de Tributación), the process is currently carried out through the Virtual Office of the Tax Administration System, TRIBU-CR.
The procedure corresponds to the:
“Request for verification of the settlement of exempted taxes on local purchases.”
Resolution No. MH-DGT-RES-0018-2025, issued by the Dirección General de Tributación, established the guidelines for filing requests, petitions and tax inquiries through TRIBU-CR, replacing the previous scheme based on TRAVI. The resolution took effect with the rollout of TRIBU-CR in October 2025.
This matters because historical documents and references to TRAVI are still in circulation. For current filings, the applicable channel should always be verified rather than relying automatically on older instructions.
What does the Tax Administration do in this procedure?
This procedure should not be understood as a simple authorization to remove an asset from the regime.
Its purpose is to allow the Tax Administration to verify the settlement of taxes that were originally exempted, when applicable.
Depending on the case, the Tax Administration may therefore request documentation to substantiate:
- The original acquisition.
- The exemption applied.
- The identification of the good.
- The tax originally unpaid.
- The basis used to calculate the settlement.
- The intended use of the asset.
- And any other element necessary to validate the calculation.
This documentation should be prepared before filing the request, not reconstructed only after the Tax Administration raises an objection.
Does a fully depreciated asset stop generating taxes upon nationalization?
Not necessarily.
One of the most common mistakes is assuming that an asset fully depreciated for accounting purposes can be removed from the regime without tax consequences.
Book depreciation and the determination of taxes linked to an exemption follow different rules.
Important warning
The fact that the book value is zero does not, by itself, mean that the amount of tax to be settled is also zero.
The applicable rule for the good, the benefit originally used, and the appropriate methodology for determining the tax liability must all be analyzed.
What happens if the good is sold in Costa Rica?
Two situations that are frequently confused must be distinguished here.
One is the sale, into the local market, of merchandise coming directly from the Free Trade Zone Regime, for which specific customs procedures exist.
A different one is the disposal of a good that was originally purchased locally with an exemption.
The regulations establish that sales of goods from a Free Trade Zone into the national customs territory are subject to the taxes and procedures applicable to an import and, when applicable, require customs declarations for exit from the regime and for definitive importation.
However, that rule should not be automatically applied to every exempted local purchase. The correct path depends on the origin of the good and the transaction being carried out.
Six questions we recommend answering before nationalizing
From a tax and Free Trade Zone control standpoint, the following questions should be answered before filing a request:
- Was the good actually acquired with an exemption?
- Which tax or taxes were exempted?
- Is the good properly identified in the Free Trade Zone records and in the accounting records?
- What exactly is intended to be done with it?
- Is there an alternative applicable procedure — export, transfer, destruction or other — instead of nationalization?
- Can the settlement that was prepared be reconciled with the original invoice, the accounting records and the regime’s controls?
If any of these answers is not clear, it is advisable to resolve it before filing the request.
Risks that are often overlooked
The risk of an incorrect nationalization is not limited to the amount of tax involved.
It can also create inconsistencies between:
Accounting records ↔ fixed asset ledger ↔ inventory ↔ exempted goods control ↔ PROCOMER ↔ Tax Administration.
That lack of consistency can later surface in a tax audit, a PROCOMER review, a financial audit, or even a due diligence process.
For that reason, the file should preserve not only the request filed with the Tax Administration, but also the documentation explaining why that was concluded to be the correct procedure.
A simple control can prevent a future contingency
A good practice is to maintain a dedicated log for goods acquired under exemption that identifies, at a minimum, the following fields:
| Purchase date | Supplier | Invoice | Description | Asset or serial number | Exempted tax | Location | Current status | Final destination | Settlement document |
|---|
This significantly facilitates any subsequent disposal, nationalization, destruction or transfer process.
It also helps demonstrate that the company maintains the control required over goods that benefit from the regime.
Conclusion
Nationalizing goods purchased locally by a Free Trade Zone company should not be viewed as a simple administrative formality.
The procedure begins well before logging into TRIBU-CR.
It must first be confirmed that the good was in fact acquired using an exemption, exactly what tax benefit was received must be determined, and what its new destination will be must be established.
Only afterward should the corresponding settlement be prepared and the “Request for verification of the settlement of exempted taxes on local purchases” be filed with the Dirección General de Tributación, following the procedures currently in force under TRIBU-CR.
Best practice is to maintain full traceability between the original invoice, the exemption, the record of the good, the accounting entries, and its final disposition.
In a Free Trade Zone, traceability does not end when the asset is acquired: it ends when the company can properly demonstrate what its final destination was and what tax treatment was applied.
Main sources
This publication is based primarily on the Free Trade Zone Regime Law No. 7210, its implementing regulations, the regulations issued by the Dirección General de Tributación in connection with TRIBU-CR, and Resolution No. MH-DGT-RES-0018-2025.
Professional notice: This publication is general in nature and does not replace the legal, accounting and tax analysis of each taxpayer’s specific circumstances.
At HG Sertricon we closely follow the regulations applicable to the Free Trade Zone Regime in Costa Rica. If you have questions about how to apply these criteria in your company, contact us.