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Economy is mostly based on agriculture, although the tourism sector grew notably in the past decades.

Capoterra is one of the Sardinian town councils that, in the last 10 years, had one of the highest population increases in the island and a considerable transformation of town planning. Now it is identified by a set of inhabited settlements distributed in three different localities, about five kilometers apart.

The first urban site, the oldest one, was developed from a seventeenth-century village and lies at the foot of the hills of Montarbu, Punta Sa Loriga and Mount Arrubiu. The second was started in the early 60s in the coastal strip that runs from Maddalena as far as Cala d'Orri; the third village took form in 1966, in the lower-hilled area of Sa Birdiera and Pauliara, at the foot of Mount Santa Barbara.

 

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