Countries › Costa Rica › Guide › 14. Disputes › Disputes in Costa Rica: courts, arbitration, enforcing foreign judgments and awards, and investment protection

Disputes in Costa Rica: courts, arbitration, enforcing foreign judgments and awards, and investment protection

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

Costa Rican commercial disputes go to the civil courts under the oral Código Procesal Civil of 2016 (in force 8 October 2018), with appeals to collegiate tribunals and cassation before the Sala Primera of the Supreme Court. Since 2 April 2025 a single Model Law based statute, Ley 8937 as reformed by Ley 10535, governs both domestic and international arbitration seated in the country. Foreign judgments and awards are recognised by the cassation chambers, and Costa Rica is party to the New York Convention (since 1988) and ICSID (since 1993).

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

New York Convention party	yes yes or noLey 6157, as of 2026-10-29 · in force
New York Convention in force for Costa Rica	1988-01-24 dateLey 6157, as of 2026-10-29 · in force
ICSID contracting state	yes yes or noLey 7332, as of 2026-10-29 · in force
ICSID Convention in force for Costa Rica	1993-05-27 dateLey 7332, as of 2026-10-29 · in force
Arbitration statute	Ley 8937 (Model Law based, domestic and international since 2 April 2025) textLey 8937, Ley 10535, as of 2026-10-29 · in force
Loser pays costs	yes, by default textLey 9342 art. 73, as of 2026-10-29 · in force
Código Procesal Civil in force	2018-10-08 dateLey 9342, as of 2026-10-29 · in force

The rule

1. The Civil Procedure Code governs civil and commercial cases; it is oral and organised around a preliminary hearing and a complementary hearing, and it repealed the 1989 code (save transitional articles), the Ley de Cobro Judicial 8624 and the Ley de Monitorio Arrendaticio.Ley 9342, Código Procesal Civil, art. 2, 102 and 183, 2016-02-03 official text · verified 2026-10-29

2. Ordinary claims of mayor cuantía go to collegiate first instance civil tribunals, other civil and commercial claims to the juzgados civiles, appeals to the collegiate appeal tribunals, and cassation (only in ordinary cases of mayor cuantía or of inestimable value) to the Sala Primera.Ley 9342, reforming Ley 7333 Ley Orgánica del Poder Judicial, art. 184 (LOPJ art. 54, 95, 95 bis, 105); CPC art. 69, 2016-02-03 official text · verified 2026-10-29

3. Costa Rican courts have jurisdiction when the defendant is domiciled in Costa Rica (a foreign company with a local branch or subsidiary is presumed domiciled for its local acts), the obligation is performed there, the claim arises from facts with effects there, or the parties agreed it and one is Costa Rican with a local connection; they have exclusive jurisdiction over rights in rem on local property and over the constitution, validity, dissolution and resolutions of companies registered in Costa Rica.Ley 9342, Código Procesal Civil, art. 11, 2016-02-03 official text · verified 2026-10-29

4. Ley 8937 applies to domestic and international arbitrations seated in Costa Rica; an arbitration is international when the parties have their places of business in different states or the seat or main place of performance is abroad; the chapter on arbitration of Ley 7727 was repealed.Ley 8937 as reformed by Ley 10535, art. 1 (Ley 8937); art. 7 (Ley 10535), 2024-09-18 official text · verified 2026-10-29 · changed: Ley 10535 (La Gaceta 182, 1 October 2024, in force 2 April 2025) extended Ley 8937 to domestic arbitration and repealed the arbitration chapter of Ley 7727.

5. Foreign judgments and awards are recognised by the cassation chamber competent for the subject matter (the Sala Primera for civil and commercial matters) through an incidental procedure with no appeal; recognised decisions have res judicata effect and are enforced by the court of the debtor's domicile.Ley 9342, Código Procesal Civil, art. 99, 2016-02-03 official text · verified 2026-10-29

6. Costa Rica ratified the New York Convention, approved by Ley 6157; UNCITRAL records signature on 10 June 1958, ratification on 26 October 1987 and entry into force on 24 January 1988, with no declarations or reservations.Ley 6157, art. 1, 1977-12-02 official text · verified 2026-10-29

7. Costa Rica approved the ICSID Convention by Ley 7332 (La Gaceta 72, 16 April 1993); ICSID lists signature on 29 September 1981, ratification on 27 April 1993 and entry into force on 27 May 1993.Ley 7332, art. 1, 1993-03-30 official text · verified 2026-10-29

8. The losing party is ordered to pay costs (lawyer fees, the time spent attending acts and necessary expenses) in every decision ending the case, subject to reasoned exemptions such as exaggerated claims or reciprocal partial success.
Cost to do it: Minimum lawyer fees under the official tariff for a claim of ₡45,482,000 are ₡7,647,300 (20% to ₡16.5 million, 15% above).
Example: Claim of ₡45,482,000: minimum fee ₡7,647,300. / Claim of US$100,000.00: minimum fee US$16,813.90.Ley 9342, Código Procesal Civil, art. 73, 2016-02-03 official text · verified 2026-10-29

Dispute	Forum	Final review
Commercial contract claim, mayor cuantía	Tribunal colegiado de primera instancia civil	Appeal tribunal, then cassation at the Sala Primera
Debt on a document or lease eviction	Juzgado civil, monitorio process	Appeal tribunal
Arbitration seated in Costa Rica	Arbitral tribunal (Ley 8937)	Annulment only, at the Sala Primera
Foreign judgment or award	Sala Primera (civil and commercial)	No appeal
Claim against the State or a public entity	Tribunal Contencioso Administrativo	Cassation at the Sala Primera
Fundamental rights violation by a public body	Sala Constitucional (amparo)	No appeal
Investor and State under a treaty	ICSID or UNCITRAL tribunal	ICSID annulment or seat courts

Which forum hears what (Ley 9342, Ley 8937, Ley 8508, Ley 7135)

Worked example

A foreign supplier wins a US$100,000.00 (₡45,482,000) ordinary case in San José. The court orders the buyer to pay costs; the supplier's recoverable lawyer fees are fixed by reference to the official tariff, at least ₡7,647,300 (US$16,813.90).

Step by step

Choose the forum in the contract: Costa Rican courts, arbitration seated in Costa Rica under Ley 8937, or a foreign seat whose award will be recognised under the New York Convention.
If litigating, file with a Costa Rican lawyer (patrocinio letrado is required) and estimate the claim, which sets the court and access to cassation.
If a foreign judgment or award must be enforced, prepare an apostilled copy and an official Spanish translation for the Sala Primera.
For disputes with a public body, check the one year filing deadline under the Código Procesal Contencioso Administrativo.

Common traps

Costa Rican courts keep exclusive jurisdiction over disputes on local real estate and on the validity and resolutions of Costa Rican companies, so a foreign forum clause will not cover them (CPC art. 11.2).
A claim filed abroad does not create lis pendens in Costa Rica unless a treaty says so (CPC art. 8.6).
Since 2 April 2025 the old Ley 7727 arbitration rules no longer apply; clauses drafted for the old regime are read under Ley 8937.
Cassation is only available in ordinary cases of mayor cuantía or of inestimable value (CPC art. 69).

Sources

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