It has become increasingly common for new service-oriented projects in Costa Rica, such as software development operations, shared services centers, and support centers, to begin operating from coworking spaces. Although the use of these facilities is not a legal requirement, it often responds to the need to launch operations quickly, without waiting for the construction, buildout, or setup of more permanent premises.
This approach is frequently adopted by businesses operating both within and outside Costa Rica’s Free Trade Zone Regime. In many cases, coworking facilities serve as temporary premises, allowing companies to commence their activities sooner and subsequently relocate to a permanent location.
Although these two arrangements share certain structural similarities, they also present significant differences that should be considered during the planning stages to ensure the successful establishment of the business in Costa Rica.
Companies operating under the Free Trade Zone Regime benefit from substantial tax, permitting, and immigration incentives. However, the regime requires a significant portion of their workforce to perform their duties on-site, meaning that fully remote operations are not permitted. Consequently, the selected coworking premises must comply with specific legal requirements regarding area and autonomy; merely occupying desks or workspaces shared with other tenants is insufficient. To accommodate businesses under this regime, some coworking centers have adapted their traditional models to meet these and other regulatory requirements. Nevertheless, not every facility, or every area within a particular center, is suitable for free trade zone activities.
By contrast, businesses operating outside the Free Trade Zone Regime may have all or most of their employees working remotely, making the traditional coworking model a suitable option.
Regardless of the applicable regime, companies selecting coworking premises must understand that this decision does not exempt them from obtaining the permits required for their specific operations at that location. A common misconception is that the health and municipal operating permits required for business premises in Costa Rica are covered by those already issued to the coworking center. In fact, each company must apply for and obtain its own permits separately. Failure to comply with these requirements may result in substantial penalties and the risk of closure.
Ultimately, whether a coworking space is intended as a temporary or permanent location, companies should carefully assess the legal requirements applicable to their specific operations and establish the necessary structures to ensure a solid foundation, stability, and continuity of their business activities.