Salary Structure and Compensation Rules Under Costa Rican Labor Law
Costa Rican labor law adopts a broad and protective definition of salary, which goes beyond fixed base pay. For legal and compliance purposes, salary generally includes any cash or in-kind compensation received in exchange for services, such as bonuses, overtime, commissions, and profit-sharing arrangements. This expansive concept has important implications for payroll structuring, social security […]
Labor Documents in Costa Rica
Properly drafted employment documents help prevent disputes, serve as a clarifying frame legal rights, and ensure compliance with Costa Rica’s protective labor laws.
Residency Options in Costa Rica: Pensioner, Annuitant, and Investor Regimes
Costa Rica offers several residency options designed for foreign individuals seeking to relocate to the country, whether for retirement, investment, or long-term living purposes. Among the most commonly used regimes are the Pensionado (pensioner), Rentista (annuitant), and Inversionista (investor) categories. Each of these regimes is based on demonstrating a specific type of financial capacity or […]
Immigration Considerations for Multinational and Free Trade Zone Companies in Costa Rica
Costa Rica’s immigration framework recognizes the importance of foreign investment and the need for companies to relocate key personnel in order to establish and operate successfully in the country. In this context, certain categories of companies benefit from more streamlined processes for obtaining work permits and residency for foreign employees, particularly those occupying highly technical […]
Strategy and Advice for Requesting an Extension of a Free Trade Zone License in Costa Rica
In Costa Rica, Free Trade Zone (FTZ) companies have the option of applying for a new Free Trade Zone License, under Article 20 BIS of the Free Trade Zone Law, if a new project is to be implemented or a significant new investment is to be made, starting said license from zero, including tax exemptions, […]
Investment Under the Free Trade Zone (FTZ) Regime
FTZ beneficiaries can be located inside or outside the Greater Metropolitan Area of San Jose (GMA) and inside or outside FTZ Parks (Park Administrator Companies). Their investment obligations and certain benefits will depend on the location, making the investment requirements more lenient for those situated outside of the GMA and inside an FTZ Park. Further, […]
Requirements for a Free Trade Zone (FTZ) Approval for Companies in the Trading Sector
1. Investment commitment (GMA being understood as the Greater Metropolitan Area of San Jose): Inside an Industrial Park: âś“ Within GMA: US$150Kâś“ Outside GMA: US$100K Outside an Industrial Park: âś“ Within GMA: US$2Mâś“ Outside GMA: US$250K 2. Monthly payment to PROCOMER for the use of the FTZ status. Corresponding to 0.30% of the monthly sales’ […]
Requirements for a Free Trade Zone (FTZ) Approval for Companies in the Services Sector
1. Investment commitment (GMA being understood as the Greater Metropolitan Area of San Jose): Inside an Industrial Park: âś“ Within GMA: US$150Kâś“ Outside GMA: US$100K Outside an Industrial Park: âś“ Within GMA: US$2Mâś“ Outside GMA: US$250K 2. Not having previous direct operations in the country. 3. Belonging to a Strategic Sector per predetermined list. 4. […]
Requirements for a Free Trade Zone (FTZ) Approval for Companies in the Manufacturing Sector
As a Regular Project: 1. New Investment (GMA being understood as the Greater Metropolitan Area of San Jose): Inside an Industrial Park: âś“ Within GMA: US$150Kâś“ Outside GMA: US$100K Outside an Industrial Park: âś“ Within GMA: US$2Mâś“ Outside GMA: US$250K 2. Not having had previous direct operations in the country. 3. Belonging to a Strategic […]
Main Benefits Under the Free Trade Zone (FTZ) Regime
The incentives under the Free Trade Zone Regime are divided into two categories: Exemptions from: a) Import duties on raw materials and other items required for production and operations.b) Import duties on equipment, machinery, spare parts, among others.c) Taxes on importation of fuels. d) Taxes on the exportation and re-exportation of products. e) National value added tax […]