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Employer of Record Costa Rica

Hire staff and expand your business in Costa Rica with our fully-managed EOR Service

How we can help

Unrivalled Employer of Record Service in Costa Rica designed to expand your business seamlessly

Agility EOR delivers services for business’s looking for an Employer of Record in Costa Rica. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.

We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in Costa Rica takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.

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Employer of Record in Costa Rica

A Brief Guide to Costa Rica

Costa Rica is renowned for its extraordinary biodiversity, coffee production, and vibrant culture. Known for its “Pura Vida” lifestyle, which translates to “pure life,” this Central American nation offers a perfect blend of serene beaches, impressive volcanoes, and rich wildlife. As a democratic republic, Costa Rica has been recognized by various international organizations such as the United Nations and the Organization of American States.




Central America


San José

Official Language



51,100 square kilometers


Approximately 5 million


Costa Rican Colón (CRC)

Major Cities

San José, Limón, Alajuela, Heredia

GDP (2022)

$60 billion USD

Major Industries

Electronics, pharmaceuticals, financial outsourcing, software development, ecotourism

Business Culture

Business Culture in Costa Rica

Business in Costa Rica is a blend of formality and friendliness. Relationships play a vital role, and initial meetings may focus on getting to know each other rather than diving into business straight away. Respect and politeness are cherished, and while timekeeping is considered important, locals may sometimes be a little behind schedule. Business cards are customarily exchanged at the beginning of meetings, and a warm, firm handshake is the standard greeting.

employer of record costa rica
Payroll and Taxes

Payroll and Taxes in Costa Rica

In Costa Rica, the “Aguinaldo” or 13th-month pay is a common feature, usually paid in December.

Employee Taxation

Costa Rica operates under a progressive tax system, with higher-income individuals taxed at a greater rate.

Gross Annual Income (CRC)

Tax Rate (%)

Up to 941,000


941,001 – 1,381,000


1,381,001 – 2,423,000


2,423,001 – 4,845,000


4,845,000 +



Employer Taxation

Employers in Costa Rica are also responsible for various employer costs, which may include:

Cost Type


Healthcare and Maternity Insurance (SEM)


Oldage, disability and death program (IVM)


Unemployment insurance


Family allowances


Complementary pensions


Learning National Institute (INA)


Joint Institute for Social Aid (IMAS)


Banco Popular Employer Fee


Banco Popular Employer Contribution



Pension and Healthcare

Costa Rica Pensions

The pension system in Costa Rica is administered by the Costa Rican Social Security Fund (CCSS), also known as Caja Costarricense de Seguro Social. The IVM system is primarily funded through contributions from both the employee and the employer, as follows:

  • Employees: 4.17% of their insurable earnings
  • Employers: 7.42% of their employee’s insurable earnings

Healthcare in Costa Rica

Costa Rica boasts one of the best healthcare systems in Central America, which is accessible to both residents and foreign nationals. The healthcare services are divided into public and private sectors.

The public healthcare system is overseen by the Costa Rican Social Security Fund (CCSS). All employers and employees are required to contribute a portion of their income to fund the public healthcare system. The public system provides comprehensive healthcare services including but not limited to:


  1. Primary care services at EBAIS (Equipos Básicos de Atención Integral en Salud) clinics scattered around the country.
  2. Hospital services including emergency care, surgeries, maternity care, and more.
  3. Pharmacy services providing prescription and over-the-counter medications.

Furthermore, the CCSS operates the CENARE (Centro Nacional de Rehabilitación) that offers specialized care for people with disabilities.

On the other hand, the private healthcare sector, often preferred by foreigners and locals seeking immediate care, offers high-quality medical services and is equipped with state-of-the-art facilities. Private healthcare centers typically have shorter wait times and provide a wider range of services compared to the public system.

employer of record costa rica
Employment Law

Employment Law in Costa Rica

Relevant Legislation: Costa Rican Labor Code outlines the regulations for employment in the country.

Employment Contracts: The Labor Code states that employment contracts should be written, specifying key details such as terms of employment, working hours, wages, and provisions for termination. It’s common for professional and long-term positions to be under a contract, although it’s not mandatory for all employment.

Working Hours: The standard working week in Costa Rica is 48 hours, spread across six days. The maximum working hours in a day should not exceed eight hours, although there are exceptions for certain sectors.

Leave: Costa Rican employees are entitled to several types of leave. These include annual leave of two weeks after a year of continuous employment, maternity leave of 17.5 weeks, and sick leave. Costa Rica doesn’t have a statutory paternity leave policy, but some companies may offer it as part of their benefits package.

Overtime: Any work performed beyond the standard 48 hours per week is considered overtime. Overtime pay should be at least 1.5 times the regular wage for weekdays and double the wage for Sundays and holidays.

Termination: Termination notice varies depending on the length of service. For less than three months of service, no notice is required; between three months and six years, one month’s notice is required; for more than six years, two months’ notice is required.

Severance Pay: In case of unjust dismissal, employees may be entitled to severance pay, depending on the length of service.


Work Permits in Costa Rica

The General Directorate of Migration and Foreigners manages the immigration system in Costa Rica. The country provides several visa categories, suitable for individual needs such as employment, education, or family reunification.

Costa Rica offers several types of work permits for foreign nationals who wish to work in the country. The specific type of work permit required depends on the applicant’s qualifications, the nature of the job, and the intended duration of the stay. Some of the main types of work permits in Costa Rica include:

  • Work Visa: Non-citizens planning to work in Costa Rica need to secure a work visa. This requires a job offer from a Costa Rican employer, who will take care of the necessary paperwork, including submitting an employment contract with the immigration authorities.
  • Permanent Residence Visa: After three years of legal residency, individuals can apply for permanent residence. They must show proof of financial stability, either through employment, pension funds, or other financial resources.
  • Family Reunification Visa: Foreign nationals with immediate family members (spouse, minor children, or parents) who are Costa Rican residents or citizens can apply for this visa. The Costa Rican family member must provide evidence of their relationship and their capacity to support the applicant.
  • Student Visa: International students accepted into a Costa Rican educational institution can apply for a student visa. The duration of the visa usually matches the length of the study program. Student visas don’t automatically allow the holder to work in Costa Rica, but they may seek part-time work permissions.

Residents planning to stay in Costa Rica for more than 90 days must apply for a Temporary Residence Permit, which serves as a form of identification.

employer of record costa rica
Public Holidays

Costa Rica Public Holidays

Holiday Name

Holiday Name


New Year’s Day

1st January

Juan Santamaria Day

11th April

Labor Day

1st May

Guanacaste Day

25th July

Virgin of Los Angeles Day

2nd August

National Day

15th September

Cultures National Day

12th October

Christmas Day

25th December



Wondering if expanding
in Costa Rica is right for you?

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The Benefits

Costa Rica Employer of Record Benefits

When you choose Agility EOR to expand in Costa Rica, we guarantee an Employer of Record Service tailored to the needs of your business


We are on top of regulatory changes in Costa Rica so you can relax.

Cost reduction

Allow our economies of scale to work in your favour.

High Service Levels

You and your employees have a dedicated account manager.

Fixed Cost Pricing

We will agree our professional fees up front based on your needs - no nasty surprises!

Consolidated Invoicing & Payments

Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.

Fast delivery

You can have 'boots on the ground' within days on our infrastructure.

Reduced Risk

All wage taxes are remitted in full to the Costa Rican authorities by professionals ensuring liabilities are met, giving you peace of mind.

Supply Chain Transparency

We only pay employees through local full employed solutions meaning Costa Rica payroll tax is paid on all funds.

Save Time and Money

Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.

Without Agility EOR, our ability to move quickly and scale would be extremely limited. Superb work from A to Z.

Carol Oliveira