Costa Rica

Employment taxes

As an employee in Costa Rica, you’ll pay:

• Income tax:
• Progressive rates from 0% to 25%, depending on your monthly income
• Income under CRC 941,000/month ($1,700 USD) is tax-free
• Employee social security contributions: Around 10.5% of your salary

Employers cover about 26.33% of gross salary in payroll taxes.

Leave policy

• Vacation: 2 weeks (after 50 weeks of work) + 10 national holidays.
• Sick leave: Unlimited paid sick leave, paid jointly by social security and your employer
• Maternity leave: 4 months paid (1 month before + 3 months after birth)
• Paternity leave: 1 month of paid paternity leave for the public sector only
• Parental leave: Not officially recognized beyond maternity/paternity

Employment termination

• Employers must provide advance notice - minimum one week and increasing according to the length of work.
• Severance pay may apply, depending on time worked
• Dismissals with cause must be based on valid reasons like misconduct, repeated absences, insubordination, dishonesty, or breach of trust, and must follow legal procedures.

Hiring and contracts

• Contracts must be in writing and signed by both parties. They must be in Spanish and can be bilingual.
• A contract must include salary, working hours, duties, benefits, and termination terms
• Probation periods allowed for up to 3 months

Payroll and salary payment

• Paid monthly (some roles weekly or bi-weekly)
• Mandatory 13th-month bonus (called aguinaldo) paid in December
• Minimum wage: Varies by job, but for most office roles, it’s around CRC 342,000–402,000/month ($650–$760 USD).

Benefits

Mandatory:

• Caja (social security)
• Aguinaldo (13th-month salary)
• Occupational risk insurance
• Vacation and holiday pay

Optional:

• Private health insurance
• Transportation or food stipends
• Training or development perks

Monthly living cost (San José Edition)

• Rent (1-bed apartment): $500–$900 USD/month
• Groceries: $250–$350/month
• Eating out & coffee: $150/month
• Utilities & internet: $100–$150/month
• Local transport: $40–$80/month

How to get a local ID number

You’ll need a DIMEX (residence permit card):

For employees:

• Once your residency application is approved, you’ll get a DIMEX card and Cedula (ID number)

For remote workers:

• Apply for the Digital Nomad Visa
• Show income of at least $3,000/month (or $4,000 for families)
• After approval, you’ll get a temporary residence permit and ID number

Social security registration

Everyone working legally must be registered with Caja Costarricense de Seguro Social (CCSS):

• Done by your employer
• Covers public healthcare, pensions, disability, and sick leave
• Monthly contributions deducted automatically

Banking

Opening a bank account? You’ll need your ID (DIMEX) and proof of address.

Popular banks:

• Banco Nacional de Costa Rica (BNCR)
• BAC Credomatic
• Banco de Costa Rica (BCR)
• Scotiabank Costa Rica

Housing and rental process

• Lease agreements typically require 1 month’s deposit and 1 month’s rent
• Most apartments are furnished
• Tenant rights are protected and landlords can’t evict without cause and must give 3 months' notice
• Contracts should be in Spanish (or bilingual)

Healthcare system

You’re covered under Caja, which includes:

• Primary care
• Specialist visits
• Hospitalization and surgeries
• Prescriptions

Many expats also buy private insurance for faster access and English-speaking doctors. INS and Blue Cross are common private options.

Driving and public transport

• You can drive with your foreign license for 90 days, then must get a Costa Rican license
• Public transport is cheap and decent in cities
• Buses are widespread
• Uber is available in most urban areas
• Taxis are red and metered

Emergency and important contacts

• Police, ambulance, fire - 911
• INS (National Insurance) – 800-800-8000

Work permit and visa requirements

Employer‑sponsored temporary work permit (permiso de trabajo):

• For those joining a Costa Rican company, your employer applies on your behalf.
• This process includes work permit + temporary residence and it takes several months to process.

Digital nomad visa:

• For remote work with foreign clients, not for local employment.
• You must show a stable monthly income of at least  $3,000 USD (or $4,000 if you have dependents), plus valid international health insurance.
• This visa grants 1-year stay, and it's renewable for another year

Other residency options: Available for investors, retirees, or individuals with passive income.