EN 
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PT As globalization evolves, Free Trade Zones (FTZs) across Central America and the Caribbean have become powerful engines for economic development, foreign investment, and workforce relocation. These zones not only attract multinational companies but also create continuous demand for international talent movement, executive mobility, and relocation services.
What Are Free Trade Zones and Why Do They Matter?
Free Trade Zones (FTZs) are designated areas that offer preferential tax and regulatory conditions to incentivize foreign investment and promote export-led growth. Typically, FTZs provide:
- Exemptions from import and export duties
- Streamlined customs and immigration processes
- Fast-track permits for business and labor operations
- World-class industrial infrastructure
For multinational companies, FTZs mean reduced operational costs, easier access to global markets, and a more competitive business environment. For global mobility and HR teams, FTZs generate a consistent need for skilled labor movement, family relocation support, and compliant immigration services. Navigating these demands is essential to ensure smooth transitions for employees and maintain business continuity.
Free Trade Zones in LATAM & The Caribbean
Key players in the region include Panama, Honduras, the Dominican Republic, El Salvador, and Costa Rica—each offering distinct advantages and sector specializations. From logistics hubs and manufacturing parks to pharmaceutical and tech-driven zones, these FTZs serve as catalysts for regional development and economic integration.
In the following sections, we’ll take a closer look at each country’s Free Trade Zones and explore what makes them stand out.
Dominican Republic
The Dominican Republic has developed one of the region’s most extensive Free Trade Zone systems, boasting 92 industrial parks with over 820 companies operating within them, according to the Consejo Nacional de Zonas Francas de Exportación (CNZFE, 2023). These parks support diverse sectors including textiles, electronics, pharmaceuticals, and business process outsourcing (BPO), making the Dominican Republic one of the Caribbean’s leading export economies.
In 2023, the country’s FTZ sector generated over US $8.06 billion in exports, representing more than 60% of all national exports (CNZFE, 2023). Additionally, FTZ operations provided direct employment to approximately 198,450 workers, strengthening the country’s position as a regional leader in manufacturing and services (ADOZONA, 2023).
The growing sophistication of FTZs has also amplified the need for international talent mobility. Companies operating in Dominican FTZs continually relocate plant managers, bilingual supervisors, logistics experts, and supply chain specialists to support expanding operations and meet global standards. As a result, demand for specialized relocation services, immigration management, and cultural adaptation support has surged in recent years.
Costa Rica
Costa Rica’s Free Trade Zone (FTZ) regime is a cornerstone of the country’s export-led growth model. As of 2023, there were 567 multinational companies operating across 68 designated industrial parks under the FTZ regime (PROCOMER, 2023). The majority of these companies are service-based (65.8%), with industrial manufacturing (25.6%) and agro-industrial firms (8.6%) also strongly represented.
The economic impact of the FTZ sector is substantial. In 2023, Costa Rica’s FTZs contributed approximately US $12.276 billion to national GDP, accounting for around 14% of total economic output (PROCOMER, 2023). Furthermore, FTZ companies attracted about 40% of Costa Rica’s total foreign direct investment (FDI) in the same year, totaling US $1.542 billion (PROCOMER, 2023).
In terms of global mobility, Costa Rica’s dynamic FTZ landscape has created an ongoing need for specialized expatriate labor. Companies consistently relocate engineers, life sciences experts, and corporate service professionals to operate in medical device manufacturing hubs like Coyol Free Zone and service centers like Zona Franca América. This trend has increased the demand for sophisticated relocation, immigration, and family support services in the country.
Honduras
Honduras has positioned itself as a regional leader in the textile and apparel industries, largely fueled by its Free Trade Zones, including major players like ZIP San José and Grupo Elcatex. These zones are integral to the country’s export economy, providing streamlined customs operations and tax benefits that attract global brands.
The maquila sector — primarily operating within FTZs — generated a trade surplus of US $1.385 billion in 2022, according to the Banco Central de Honduras (Banco Central de Honduras, 2023). This surplus highlights the importance of FTZs in balancing Honduras’s external accounts and sustaining manufacturing employment.
Global mobility is a crucial aspect of this ecosystem. Due to the close relationships with U.S. and European fashion brands, Honduras consistently sees the relocation of quality control experts, textile designers, logistics coordinators, and compliance officers. Companies operating in Honduran FTZs require relocation programs that include bilingual support, cross-cultural training, and assistance for expatriate families to ensure smooth integration.
El Salvador
El Salvador’s Free Trade Zones play a key role in industrial sectors such as textiles, electronics, and food processing. Notable FTZs like American Industrial Park and San Marcos Free Zone have attracted significant foreign investment, especially from North America.
In 2023, the country’s total exports reached US $6.498 billion, with Free Trade Zones contributing heavily to this figure (Banco Central de Reserva de El Salvador, 2024). Despite an overall 8.7% decrease in total exports compared to 2022, the FTZ sector remained resilient and continued to anchor much of the country’s industrial output (Banco Central de Reserva de El Salvador, 2024).
The expansion of El Salvador’s FTZ sector has spurred increasing mobility demands, particularly from U.S.-based companies. Operational teams, IT specialists, and plant managers are frequently relocated to El Salvador. To remain competitive, companies have had to enhance their relocation strategies by offering end-to-end support, including immigration processing, schooling solutions for expatriate children, and cultural adjustment services.
Panama
Panama is globally recognized for its strategic Free Trade Zones, notably the Colón Free Zone, which is the second-largest FTZ worldwide, and Panama Pacífico, a specialized logistics and high-tech manufacturing hub. These FTZs provide unparalleled connectivity between North and South America.
In the first two months of 2024 alone, the Colón Free Zone reported economic activity totaling US $2.986 billion, marking a 36% increase over the same period in 2023 (Zona Libre de Colón, 2024). Furthermore, the services sector — which includes logistics, banking, and trade — accounted for more than 70% of Panama’s GDP in 2024 (Ministerio de Economía y Finanzas de Panamá, 2024).
The proliferation of multinational corporations, including Dell, 3M, and Procter & Gamble, has driven an ongoing wave of executive relocations and international staff movements. Companies operating in Panama’s FTZs require advanced relocation support, often integrating immigration management, executive housing solutions, and family assistance programs to support the smooth transition of their international employees.
Free Trade Zones & Their Influence on Global Mobility and Relocation
Free Trade Zones (FTZs) play a critical role in accelerating global mobility and corporate relocation strategies. By offering regulatory and economic advantages, FTZs create powerful ecosystems that require companies to move talent internationally at an unprecedented pace. Here are five key ways FTZs directly influence global mobility and relocation:
- Increased Demand for Expatriate Talent
FTZs attract industries like advanced manufacturing, life sciences, and logistics that require highly specialized skills. Since local labor markets may not always meet these niche demands, companies frequently relocate engineers, operations managers, and technical experts from abroad to launch and manage FTZ operations. - Establishment of Regional Headquarters
Many multinational corporations use FTZs as strategic hubs for regional operations. For example, Panama’s Colón Free Zone and Costa Rica’s Coyol Free Zone have become vital bases for overseeing Latin American activities. This drives long-term executive relocations and increases the need for housing, schooling, and integration support for relocated families. - Streamlined Immigration and Labor Procedures
FTZs often feature simplified immigration processes and special visa categories for foreign workers. Fast-track work permits and business-friendly customs procedures allow companies to deploy talent more efficiently, reducing the bureaucratic hurdles typically associated with international relocation. - Expansion of Corporate Mobility Programs
As companies scale operations in FTZs, they invest more in comprehensive global mobility programs. Relocation now extends beyond simple moves to include cultural training, family support, tax advisory, and repatriation planning, making employee experience a strategic advantage in talent retention. - Two-Way Career Mobility
FTZs not only bring foreign workers into host countries but also open international career paths for local employees. Professionals who gain experience working alongside global teams within FTZs often move on to international assignments elsewhere, creating a two-way flow of talent that strengthens multinational operations.
How LARM Supports Companies in Free Trade Zones
Operating within Free Trade Zones (FTZs) demands fast, compliant, and employee-focused relocation solutions. LARM Group helps companies meet these challenges through specialized support services tailored to the dynamic needs of FTZ environments:
- Full Relocation Management:
From settling-in services (home-finding, school-finding, tenancy management, and more) to departure services, LARM ensures smooth transitions for expats and their families across Latin America and the Caribbean.
To see the full suite of services LARM provides click here. - Immigration and Compliance:
Expert handling of visas, work permits, and local regulatory requirements to keep global assignments compliant and efficient. - Cultural and Family Support:
Customized programs including cultural adaptation training, spousal assistance, and language assistance to improve experience and assignment success. - Tailored Solutions Every Step of the Process:
LARM adapts services to each client’s unique needs, offering scalable support for single moves, group relocations, or regional expansions into FTZs. - Local Expertise in 32 Countries Across Latin America and the Caribbean:
Our network of in-country specialists ensures efficient personalized service that aligns with local regulations and cultural expectations.
With LARM as a partner, companies can confidently expand into Free Trade Zones, relocating global talent with speed, precision, and care. Contact us at info@larmgroup.com or visit larmgroup.com to learn how we can support your global mobility needs.
Sources:
- Banco Central de Honduras. Boletín Estadístico Diciembre 2022. Banco Central de Honduras, 2023, www.bch.hn.
- Banco Central de Reserva de El Salvador. Informe de Comercio Exterior 2024. Banco Central de Reserva de El Salvador, 2024, www.bcr.gob.sv.
- CNZFE (Consejo Nacional de Zonas Francas de Exportación). Informe Estadístico 2023. CNZFE, 2023, www.cnzfe.gob.do.
- Ministerio de Economía y Finanzas de Panamá. Presentación a Inversionistas Mayo 2024. Ministerio de Economía y Finanzas de Panamá, 2024, www.mef.gob.pa.
- PROCOMER (Promotora del Comercio Exterior de Costa Rica). Régimen de Zonas Francas en Costa Rica: Resultados 2023. PROCOMER, 2023, www.procomer.com.
- Zona Libre de Colón. Reporte Anual de Actividades 2024. Zona Libre de Colón, 2024 www.zonalibredecolon.com
