Countries › Costa Rica › Guide › 14. Disputes › Commercial arbitration in Costa Rica: one Model Law statute for domestic and international cases, the clause, tribunal, interim measures and annulment

Commercial arbitration in Costa Rica: one Model Law statute for domestic and international cases, the clause, tribunal, interim measures and annulment

Last verified: 2026-10-29 · Status: Changing

Since 2 April 2025 every arbitration seated in Costa Rica, domestic or international, is governed by Ley 8937, the UNCITRAL Model Law statute reformed by Ley 10535. The parties choose the rules and arbitrators; by default a domestic case has one arbitrator and an international case three. The only recourse is annulment before the Sala Primera, filed within 15 days for domestic awards and three months for international ones, and it does not suspend enforcement.

USD figures use the Banco Central de Costa Rica reference selling rate of ₡454.82 per US dollar published for 29 October 2026 (indicator 318 on bccr.fi.cr), rounded to the cent.

Key facts

Arbitration statute	Ley 8937 as reformed by Ley 10535 textLey 8937, as of 2026-10-29 · in force
UNCITRAL Model Law based	yes yes or noLey 8937, as of 2026-10-29 · in force
Default number of arbitrators, domestic	1 arbitratorsLey 8937 art. 10, as of 2026-10-29 · in force
Default number of arbitrators, international	3 arbitratorsLey 8937 art. 10, as of 2026-10-29 · in force
Annulment court	Sala Primera, Corte Suprema de Justicia textLey 8937 art. 6, 34, as of 2026-10-29 · in force
Annulment term, domestic award	15 daysLey 8937 art. 34, as of 2026-10-29 · in force
Annulment term, international award	3 monthsLey 8937 art. 34, as of 2026-10-29 · in force
Annulment suspends enforcement	no yes or noLey 8937 art. 35, as of 2026-10-29 · in force
Tribunal may order interim measures	yes yes or noLey 8937 art. 17, as of 2026-10-29 · in force
Extension to non signatories	yes, by participation or benefit textLey 8937 art. 7 A, as of 2026-10-29 · in force
Proceedings confidential	yes; final award public with parties by initials textLey 8937 art. 39, as of 2026-10-29 · in force

The rule

1. Ley 8937 applies to national and international arbitrations seated in Costa Rica; an arbitration is international when the parties' places of business are in different states, the seat or the main place of performance is outside the state of the parties, or the parties agree it relates to more than one state; otherwise it is domestic and the law applies to it save stated exceptions.Ley 8937, Ley de Arbitraje, art. 1, 2024-09-18 official text · verified 2026-10-29 · changed: Ley 10535 (in force 2 April 2025) renamed Ley 8937 as Ley de Arbitraje, extended it to domestic arbitration and repealed chapter III (arbitration) of Ley 7727; pending cases may by agreement keep the old rules, failing which the tribunal decides.

2. Disputes over matters of free disposal and settlement under civil and commercial law are arbitrable.Ley 8937, Ley de Arbitraje, art. 38, 2024-09-18 official text · verified 2026-10-29

3. The arbitration agreement must be in writing, which includes any recorded form, electronic communications and a reference to a document containing a clause; it extends to non signatories who took part decisively in negotiating, performing or terminating the contract, and to those who claim benefits under it.Ley 8937, Ley de Arbitraje, art. 7 and 7 A, 2024-09-18 official text · verified 2026-10-29

4. A court seised of a matter covered by an arbitration agreement must refer the parties to arbitration if a party asks no later than its first submission on the merits; courts may still grant interim measures before or during the arbitration.Ley 8937, Ley de Arbitraje, art. 8 and 9, 2011-04-27 official text · verified 2026-10-29

5. Absent agreement, a domestic arbitration has one arbitrator and an international arbitration three; if a party or the co arbitrators fail to appoint within 30 days, the agreed appointing authority or, failing that, any entity authorised to administer arbitrations in Costa Rica appoints.Ley 8937, Ley de Arbitraje, art. 10 and 11, 2024-09-18 official text · verified 2026-10-29

6. In domestic arbitrations of law, arbitrators must be lawyers with at least five years in the Colegio de Abogados and authorisation from the Ministerio de Justicia y Paz; international arbitrators follow international standards; institutions administering domestic ADR need prior authorisation from that ministry, which does not apply to international arbitrations.Ley 7727, as amended by Ley 10535, art. 71 bis and 72, 2024-09-18 official text · verified 2026-10-29

7. Challenges to arbitrators are filed within five days (domestic) or fifteen days (international); a rejected challenge may be taken to the Sala Primera within five or thirty days; a tribunal's ruling upholding its own jurisdiction may be reviewed by the Sala Primera if requested within ten or thirty days.Ley 8937, Ley de Arbitraje, art. 6, 13 and 16, 2024-09-18 official text · verified 2026-10-29

8. The tribunal may grant interim measures; by agreement the parties may constitute a tribunal before the arbitration solely to hear interim measure requests; Costa Rican courts have the same power to order interim measures in support of arbitrations seated in Costa Rica or abroad.Ley 8937, Ley de Arbitraje, art. 17 and 17 J, 2024-09-18 official text · verified 2026-10-29

9. The tribunal decides under the law chosen by the parties, and ex aequo et bono only if expressly authorised; hearings may be held in person or by videoconference; the award must be written, signed and reasoned.Ley 8937, Ley de Arbitraje, art. 24, 28 and 31, 2024-09-18 official text · verified 2026-10-29

10. The proceedings are confidential; unless agreed otherwise, the final award is public, naming arbitrators and lawyers and identifying the parties only by initials.Ley 8937, Ley de Arbitraje, art. 39, 2024-09-18 official text · verified 2026-10-29

11. Annulment before the Sala Primera is the only recourse against an award, on the Model Law grounds (incapacity or invalid agreement, lack of notice, excess of mandate, irregular composition or procedure, non arbitrability, public policy); the term is 15 days for domestic and three months for international awards; the Sala cannot remit the case to the tribunal once it annuls.Ley 8937, Ley de Arbitraje, art. 34, 2024-09-18 official text · verified 2026-10-29

12. Awards are enforced in court under the rules for enforcing judgments; a pending annulment request does not suspend compliance with the award.Ley 8937, Ley de Arbitraje, art. 35, 2024-09-18 official text · verified 2026-10-29

13. Lawyer fees in arbitral proceedings with a determinable value follow the general tariff for proceedings of knowledge (20%, 15% and 10% bands).
Cost to do it: Minimum party lawyer fee on a ₡45,482,000 claim: ₡7,647,300 (US$16,813.90); arbitrator and institution fees follow the chosen centre's published schedule (Ley 7727 art. 73).Decreto Ejecutivo 41457-JP, art. 16, 2018-10-17 official text · verified 2026-10-29

Step	Domestic	International
Default arbitrators	1	3
Challenge filed with tribunal	5 days	15 days
Challenge taken to the Sala Primera	5 days	30 days
Review of jurisdiction ruling	10 days	30 days
Correction or interpretation request	5 days	30 days
Additional award request	10 days	30 days
Annulment request	15 days	3 months
Reply to annulment	5 days	15 days

Domestic versus international terms under Ley 8937 as reformed by Ley 10535

Worked example

A Costa Rican buyer and a Colombian seller arbitrate a US$100,000.00 (₡45,482,000) claim seated in San José: the case is international, so absent agreement there are three arbitrators and the losing party has three months to seek annulment. If both parties were Costa Rican with local performance, the case would be domestic: one arbitrator and 15 days to seek annulment.

Step by step

Name the seat, the rules or institution, the number of arbitrators and the language in the clause.
For domestic cases, check the institution is authorised by the Ministerio de Justicia y Paz and that arbitrators of law meet the five year requirement.
If urgent relief is needed before the tribunal exists, apply to the court or agree on a pre arbitral interim tribunal.
After the award, calendar the annulment term and seek court enforcement; annulment does not stop it.

Common traps

The domestic or international label now changes every term; a case between two local subsidiaries of foreign groups is usually domestic.
A party that does not invoke the clause in its first merits filing in court loses the right to have the case referred (art. 8).
Ex aequo et bono decisions need express authorisation (art. 28.3).
Final awards become public with party initials unless the parties agree otherwise (art. 39).
Cases filed before 2 April 2025 may run under either regime; agree the applicable law early (Ley 10535 transitorio).

Sources

← Debt collection in Costa Rica: the monitorio, executory titles, mortgage and pledge foreclosure, attachments and auctionsEnforcing arbitral awards in Costa Rica: local awards, foreign awards under the New York and Panama Conventions, and the Sala Primera →

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