Doing Business in Costa Rica (2025): Government Websites, Key Policies, Step-by-Step Process and Practical Tips

This guide compiles up-to-date 2025 information for overseas companies that want to operate in Costa Rica. It lists the main government agencies and web portals you will use for company registration, tax filings, labor compliance and visas, summarizes relevant policy points and interpretations, and provides concrete operational steps plus practicalNotes (precautions).

Main government portals and their roles

Key policy points and recent interpretations to watch in 2025

• Electronic invoicing and digital tax compliance: Hacienda continues to expand mandatory electronic invoicing and online filing requirements. Expect full compliance demands for invoices, withholding records and VAT returns through Hacienda platforms.
• Labor protections remain robust: Courts favor employees in disputes involving dismissal, overtime and severance. Employers must follow strict notification, cause documentation and procedural safeguards.
• Immigration scrutiny for foreign hires: Work permits and residency are subject to review of local hiring practices. Authorities expect local-first hiring justifications for some positions and clear evidence of specialized skills for foreign workers.
• AML and beneficial ownership transparency: Costa Rica enforces anti-money laundering standards; companies should be ready to disclose ultimate beneficial owners and maintain AML-compliant KYC records.
• Environmental and sectoral authorizations: Manufacturing, agro-industry, tourism and some services require sector permits (environmental impact, health, sanitary). Early engagement with MINAE and municipal authorities avoids delays.
• Transfer pricing and international tax rules: Large related-party transactions typically need documentation. Costa Rica aligns increasingly with international transfer pricing norms; maintain contemporaneous files if thresholds apply.

Step-by-step operations for a foreign company (practical workflow)

1. Choose legal vehicle and prepare documentation
   • Decide between a local limited liability company (Sociedad de Responsabilidad Limitada, SRL), a stock corporation (Sociedad Anónima), or a branch of a foreign entity. SRL is common for SMEs; a branch ties the parent company directly to liabilities.
   • Prepare articles of incorporation, appoint managers/directors and collect IDs. Contracts and corporate documents should be prepared in Spanish or officially translated.
2. Name verification and notarization
   • Perform a name availability check at the Registro Nacional. Notarize statutes and powers of attorney as required; Apostille foreign documents when requested.
3. Register the company at Registro Nacional
   • File incorporation documents with the Mercantile Section of the Registro Nacional to obtain the cédula jurídica (legal ID for the company).
   • Typical timing: 1–4 weeks depending on document completeness and notary processing.
4. Tax registration with Ministerio de Hacienda
   • Obtain the tax ID and register for VAT (IVA) and corporate income tax. Enroll in Hacienda’s electronic invoicing (factura electrónica) system if your activity is covered.
5. Register as employer and social security with CCSS and MTSS
   • Before payroll, enroll the company and employees with CCSS, which secures healthcare and pension contributions. Register the workforce with MTSS and comply with occupational safety rules.
6. Apply for municipal license and sector permits
   • Request municipal patent (patente municipal) and business operation licenses from the local municipality. For regulated activities, secure sector-specific permits (health, environment, food safety).
7. Open a local bank account and register foreign investment if applicable
   • Banks usually require the cédula jurídica, copies of corporate minutes and ID of signatories. If sizable capital inflows occur, register with the BCCR for regulatory reporting.
8. Hire staff and address immigration needs
   • Post jobs locally where possible. For foreign hires, apply for work permits and temporary residency via Migración. Start immigration applications early—processing can take several weeks to months.
9. Ongoing tax and labor compliance
   • Submit monthly VAT and payroll declarations, withhold employee taxes, remit CCSS contributions and keep accurate accounting records in Spanish. Prepare annual corporate tax returns and any required transfer pricing documents.

Practical timeline and estimated checkpoints

• Company formation to cédula jurídica: 1–4 weeks.
• Tax registration and e-invoicing enrollment: a few days to 2 weeks.
• Social security and employer registration: immediate to 2 weeks (must be done before payroll obligations).
• Work permits/residency for employees: 1–3 months depending on case complexity.

Notes (Precautions and best practices)

• Register social security before the first payroll: Failure leads to fines and back payments.
• Comply with e-invoicing and electronic tax returns: Hacienda enforces penalties for late or missing digital filings.
• Contract language and dispute forum: Draft employment and commercial contracts in Spanish and include clear clauses on termination, severance and applicable law.
• Respect labor protections: Dismissals without just cause can trigger significant severance and court-ordered penalties.
• Maintain AML and beneficial owner records: Financial institutions and authorities increasingly request detailed ownership and KYC information.
• Budget for municipal and sector permits: Municipal patent, zoning and environmental approvals often add steps and fees.
• Use local counsel and accountants: Costa Rican practice and administrative interpretation can differ from written law; a local advisor reduces risk.

Illustrative cases

Case A: US software firm hires Costa Rican developers

A US SaaS company established an SRL to hire local developers and manage contracts. They prioritized quick Registro Nacional registration, immediate CCSS enrollment and Hacienda e-invoicing setup. Key lessons: prepare Spanish employment contracts, ensure correct payroll withholding and classify independent contractors carefully to avoid reclassification by MTSS.

Case B: European manufacturer opens a branch

A manufacturing branch required environmental impact assessment and trade permits. Early dialogue with MINAE and the local municipality prevented costly redesigns. They also completed foreign investment registration with BCCR to enable currency remittances.

Where to get help

For HR and cross-border employment support, SailGlobal provides out-of-sea human services including visa guidance, local payroll setup and employer-of-record options to simplify hiring in Costa Rica. Using a specialized provider can accelerate hiring while maintaining compliance.

Final recommendations

1. Start early: immigration and sectoral permits are the usual critical path items.
2. Document everything in Spanish and keep certified translations of foreign documents.
3. Engage local lawyers and accountants to interpret administrative practices and reduce unexpected risks.
4. Stay current with Hacienda’s e-invoicing updates and with MTSS rulings on employment practices.

Before taking any binding steps, verify the current rules on the agencies’ official websites listed above and consult local professional advisors for tailored legal and tax advice.