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Costa Rica's political system and how laws are made: what investors need to know

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

Costa Rica is a presidential republic under the 1949 Constitution with a single chamber, the 57 member Asamblea Legislativa; presidents and deputies serve four years and neither may be re-elected consecutively. In the 1 February 2026 election the Pueblo Soberano candidate won the presidency in the first round and the party took 31 of 57 seats, the first single party absolute majority since 1990, but still short of the 38 votes needed for two thirds matters such as foreign loans, constitutional reforms and veto overrides. Taxes, budgets and loans cannot go to referendum, and every law needs two debates and publication in La Gaceta.

Key facts

Presidential term	4 yearsConstitución art. 134, as of 1949-11-07 · in force
Start of current presidential term	2026-05-08 dateConstitución art. 136, as of 2026-05-08 · in force
End of current presidential term	2030-05-08 dateConstitución art. 134 and art. 136, as of 2026-05-08 · in force
Last general election	2026-02-01 dateConstitución art. 133, as of 2026-02-01 · in force
Next general election (first Sunday of February 2030)	2030-02-03 dateConstitución art. 133, as of 2026-10-29 · in force
Share of valid votes needed to win the presidency in the first round	40 %Constitución art. 138, as of 1949-11-07 · in force
Seats in the Asamblea Legislativa	57 seatsConstitución art. 106, as of 1961-05-12 · in force
Deputy term	4 yearsConstitución art. 107, as of 1949-11-07 · in force
Seats held by the President's party (Pueblo Soberano), 2026 to 2030	31 seatsEU Election Expert Mission final report, as of 2026-05-04 · in force
Executive veto period	10 business daysConstitución art. 126, as of 1949-11-07 · in force
Vote needed to override a veto	two thirds of all members (38 of 57) votesConstitución art. 127, as of 1949-11-07 · in force
Vote needed to approve loans contracted abroad	two thirds of all members (38 of 57) votesConstitución art. 121(15), as of 1968-05-31 · in force
Voter signatures needed to call a referendum	5 % of registered votersConstitución art. 105, as of 2002-05-28 · in force
Vote needed for a partial constitutional reform	two thirds of all members in two legislatures votesConstitución art. 195, as of 2002-05-28 · in force

The rule

1. Executive power is exercised by the President of the Republic and the ministers. The President and two Vice Presidents are elected together on the first Sunday of February of the election year and need more than 40 percent of valid votes; if no ticket reaches it, a runoff between the top two is held on the first Sunday of April. They take office on 8 May for a four year term. Anyone who held the presidency in the previous eight years cannot be elected, so there is no consecutive re-election.Constitución Política, art. 130, 132(1), 133, 134, 136 and 138, 1949-11-07 official text · verified 2026-10-29

2. Legislative power is delegated by the people to the Asamblea Legislativa, made up of 57 deputies elected by province for four years, who cannot be re-elected consecutively. The Tribunal Supremo de Elecciones reallocates seats among provinces in proportion to population after each census; on 24 July 2025 it moved seats from San José, Cartago and Heredia to Guanacaste, Puntarenas and Alajuela.Constitución Política, art. 106 as reformed by Ley 2741 of 12 May 1961, art. 105, 106 and 107, 1961-05-12 official text · verified 2026-10-29

3. The Assembly meets in ordinary sessions for six months a year, from 1 August to 31 October and from 1 February to 30 April; a legislature runs from 1 May to 30 April. Its exclusive powers include passing laws, approving treaties (two thirds of all members for treaties that transfer powers to a community legal order), passing the ordinary and extraordinary budgets, setting national taxes and authorising municipal ones, approving public credit loans (two thirds of all members for loans contracted abroad or financed with foreign capital) and legislating on the currency and credit after hearing the monetary authority.Constitución Política, art. 116 as reformed by Ley 9850 of 22 June 2020; art. 121 as reformed by Ley 4123 of 31 May 1968, art. 116 and art. 121(1), (4), (11), (13), (15) and (17), 2020-06-22 official text · verified 2026-10-29

4. A bill becomes law after two debates on different, non consecutive days, approval by the Assembly, sanction by the Executive and publication in La Gaceta. Bills may be delegated to permanent committees with full legislative power by a two thirds vote, but not bills on elections, creating or modifying national taxes, treaties, budgets, public loans, currency and credit or constitutional reforms.Constitución Política, art. 124 as reformed by Ley 7347 of 1 July 1993 and Ley 8281 of 28 May 2002, art. 124, 2002-05-28 official text · verified 2026-10-29

5. The Executive may veto a bill within ten business days of receiving it; if it does not, it must sanction and publish it. The Assembly overrides a veto with two thirds of all its members; if it fails, the bill is archived until the next legislature. The ordinary budget law cannot be vetoed. A veto on constitutional grounds goes to the Constitutional Chamber, which has 30 calendar days to decide.Constitución Política, art. 125, 126, 127 and 128, 1949-11-07 official text · verified 2026-10-29

6. Laws and partial constitutional reforms may be approved or repealed by referendum called by 5 percent of registered voters, by two thirds of the Assembly, or by the Executive with an absolute majority of the Assembly. No referendum may be held on budget, tax, fiscal, monetary, credit, pension, security, loan approval or administrative contract matters. Results bind the State with turnout of at least 30 percent for ordinary laws and 40 percent for constitutional reforms and qualified majority matters.Constitución Política, art. 105 and art. 102(9) as reformed by Ley 8281 of 28 May 2002, art. 105 and art. 102(9), 2002-05-28 official text · verified 2026-10-29

7. A partial constitutional reform must be proposed in ordinary sessions by at least ten deputies or 5 percent of registered voters, approved by two thirds of all members in a first legislature, and approved again by two thirds in three debates in the next legislature; it may also go to referendum if two thirds of the Assembly agree.Constitución Política, art. 195 as reformed by Ley 6053 of 1977 and Ley 8281 of 2002, art. 195, 2002-05-28 official text · verified 2026-10-29

8. Results of the 1 February 2026 general election: the Partido Pueblo Soberano presidential ticket won the first round with 48.3 percent of valid votes against 33.4 percent for the Partido Liberación Nacional, with turnout of about 70 percent of 3.7 million voters, the highest since 2010. In the Assembly, Pueblo Soberano won 31 seats, Liberación Nacional 17, Frente Amplio 7, and Coalición Agenda Ciudadana and Unidad Social Cristiana one each. The new government took office on 8 May 2026.European Union Election Expert Mission, final report on the 1 February 2026 presidential and legislative elections, published by the Tribunal Supremo de Elecciones, Summary and section on results, 2026-05-04 official text · verified 2026-10-29

9. The national territory is divided for administrative purposes into provinces, cantons and districts. New provinces need a partial constitutional reform plus a plebiscite in the affected provinces; municipal governments run each canton.Constitución Política, art. 168 and art. 169, 1949-11-07 official text · verified 2026-10-29

Party	Seats	Share of 57
Pueblo Soberano (PPSO)	31	54.4%
Liberación Nacional (PLN)	17	29.8%
Frente Amplio	7	12.3%
Coalición Agenda Ciudadana (CAC)	1	1.8%
Unidad Social Cristiana (PUSC)	1	1.8%

Asamblea Legislativa 2026 to 2030, seats by party (EU Election Expert Mission final report, published by the TSE)

Matter	Threshold	Article
Quorum to hold a session	Two thirds of all members present (38)	art. 117
Ordinary law, budget law	Absolute majority of votes present, two debates	art. 119 and 124
Loans contracted abroad or financed with foreign capital	Two thirds of all members (38)	art. 121(15)
Treaties transferring powers to a community legal order	Two thirds of all members (38)	art. 121(4)
Veto override	Two thirds of all members (38)	art. 127
Delegating a bill to a committee	Two thirds of all members (38)	art. 124
Partial constitutional reform	Two thirds of all members, in two legislatures	art. 195

Votes needed in the Asamblea Legislativa (Constitución Política)

Worked example

Counting votes for a reform. A bill lowering a tax needs only an absolute majority of votes present (art. 119), which the 31 seat governing party can supply alone, but it cannot be delegated to a committee and cannot go to referendum (Constitución art. 105 and 124). A loan from a multilateral lender to finance the budget needs 38 votes, so at least seven opposition deputies must agree (art. 121(15)).
Timing a change in law. Even after a bill passes its second debate, the Executive has ten business days to sanction or veto it, and the law takes effect only after publication in La Gaceta (art. 124 and 126). Build that lag, plus any start date set in the law itself, into deal timetables.

Step by step

1. Track bills by expediente number on the Asamblea Legislativa site and note whether they need a simple or two thirds majority.
2. Watch the ordinary session calendar (1 August to 31 October and 1 February to 30 April); in extraordinary sessions called by the Executive, the Assembly may only deal with the matters listed in the convening decree (art. 116 and 118).
3. Check La Gaceta and SCIJ for the published text and effective date before acting on a new law.
4. For constitutional challenges to a law, follow the Sala Constitucional; see disputes/constitutional-amparo.
5. Put the 3 February 2030 general election and the 8 May 2030 change of government in long range planning; see /calendar/ and /country/costa-rica/.

Common traps

Assuming a majority government can do everything. Sessions need 38 members present (art. 117), and with 31 of 57 seats the governing party controls ordinary laws and the budget, but external loans, treaty transfers of powers, veto overrides and constitutional reforms need 38 votes.
Expecting a referendum to deliver tax or budget changes. The Constitution bars referendums on budget, tax, fiscal, monetary, credit, pension and loan matters (art. 105).
Reading a second debate vote as the law. A bill is not law until sanctioned and published in La Gaceta, and the Executive may veto it within ten business days (art. 124 and 126).
Relying on press figures for election results. Use the TSE's declarations and official reports; percentages differ depending on whether blank and null votes are counted (the 40 percent threshold uses valid votes only).

Sources

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