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What is normal abroad but works differently in Costa Rica

Argentina. For full detail on Argentina, go to The Argentine Thread.

Last verified: 2026-10-30 · Status: Changing

Costa Rica is an open, rules based market, but several habits foreign investors bring from home work differently, and each has a cost, cap or deadline in law. Employers pay a thirteenth month by 20 December and notice plus cesantía on dismissal without cause, overtime costs 50% extra, and lending of any kind is capped by BCCR published ceilings. Dollar debts in local deals can be paid in colones, every company pays an annual entity tax, leases run three years, consumers can cancel off premises and online sales, and accepted e invoices are tradable executive titles.

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; conversions are for orientation only. Amounts tied to the salario base use the 2026 figure of ₡462,200 (Circular 246-2025 of the Consejo Superior del Poder Judicial, under Ley 7337 art. 2).

Key facts

Aguinaldo (thirteenth month)	One month of salary, paid within the first 20 days of December textLey 2412 art. 1 and 4, as of 2026-10-30 · in force
Cesantía cap	8 yearsCódigo de Trabajo art. 29(4), as of 2026-10-30 · in force
Maximum annual interest, colones, July to December 2026	36.48 %Ley 7472 art. 36 bis; CP-BCCR-017-2026, as of 2026-07-03 · in force
Minimum lease term	3 yearsLey 7527 art. 70, as of 2026-10-30 · in force

The rule

1. Thirteenth month: every private employer pays one month of salary (12 month average to 30 November) within the first twenty days of December, exempt from income tax and outside the CCSS base.
Cost to do it: One extra month of payroll.
Example: ₡900,000 salary: ₡900,000 aguinaldo. / About US$1,978.80.Ley 2412, art. 1, 2, 4, 7 and 9, 1959-10-23 official text · verified 2026-10-30

2. No free dismissal: ending an indefinite contract without cause requires up to one month of notice (or pay) and cesantía of up to 22 days per year, capped at the last eight years.
Example: Five years at ₡40,000 a day: cesantía ₡4,248,000. / About US$9,339.96.Ley 2, Código de Trabajo, as reformed by Ley 7983, art. 28 and 29, 2000-02-16 official text · verified 2026-10-30

3. Hours: 48 hours a week by day (36 at night), overtime at 50% more, and no more than twelve hours a day including overtime.Ley 2, Código de Trabajo, art. 136, 139 and 140, 1943-08-27 official text · verified 2026-10-30

4. Interest ceiling: any lender's annual rate, fees included, is capped by the BCCR semester ceiling; for July to December 2026, 36.48% in colones and 30.11% in dollars.
Example: ₡10,000,000 loan: at most ₡3,648,000 interest a year. / About US$8,020.76.Ley 7472 art. 36 bis; BCCR CP-BCCR-017-2026, art. 36 bis, 2026-07-03 official text · verified 2026-10-30

5. Dollar contracts: valid, but in local deals the debtor may pay in colones at the BCCR average market rate on the payment date; cross border, trade and abroad funded deals are paid in the agreed currency.Ley 7558, art. 48 and 49, 1995-11-03 official text · verified 2026-10-30

6. Annual entity tax: every registered company, EIRL and branch pays 15% to 50% of a salario base each January; three unpaid years lead to dissolution.
Cost to do it: ₡69,330 to ₡231,100 in 2026.
Example: Top rate ₡231,100. / About US$508.11.Ley 9428, art. 3, 4 and 7, 2017-03-21 official text · verified 2026-10-30

7. Leases: minimum three years, automatic three year renewal absent three months' notice, housing rents in colones indexed up to CPI and housing rents in foreign currency frozen for the term.Ley 7527, art. 67, 70 and 71, 1995-07-10 official text · verified 2026-10-30

8. Consumers: implied warranty with at least thirty days to claim, and eight business days to cancel off premises and online sales with refund within eight calendar days.Ley 7472; DE 37899-MEIC, Ley 7472 art. 40 and 43; DE 37899 art. 72 and 75, 2013-07-08 official text · verified 2026-10-30

9. Invoices: accepted electronic invoices are executive titles that can be recorded and traded; a payer that ignores a confirmation request for ten business days is deemed to accept.Código de Comercio art. 460 bis and 460 ter (Ley 10039), art. 1 and 2, 2021-09-30 official text · verified 2026-10-30

Habit abroad	Costa Rican rule	Page
Discretionary year end bonus	Mandatory aguinaldo by 20 December	normal-abroad/aguinaldo-thirteenth-month
Dismissal at will	Notice up to 1 month plus cesantía, 8 year cap	normal-abroad/no-dismissal-at-will
Salaried staff exempt from overtime	48 hour week, overtime at 150%, 12 hour cap	normal-abroad/working-hours-and-overtime
Freely priced interest	BCCR ceiling every semester	normal-abroad/interest-rate-ceiling
Pay in contract currency	Local dollar debts payable in colones	normal-abroad/dollar-debts-payable-in-colones
Dormant shells nearly free	Annual entity tax, dissolution after 3 unpaid years	normal-abroad/annual-tax-on-legal-entities
Any lease term and indexation	3 year minimum, frozen dollar housing rent	normal-abroad/three-year-minimum-leases-and-fixed-dollar-rents
Store return policy	8 business day withdrawal off premises and online	normal-abroad/consumer-warranty-and-withdrawal-rights
Invoice only evidence	Accepted e invoice is a tradable executive title	normal-abroad/invoice-acceptance-and-factoring

Normal abroad versus the Costa Rican rule (sources in the rules above).

Worked example

A foreign company hiring 20 staff at an average ₡1,000,000 a month should budget one extra month for the aguinaldo (₡20,000,000, US$43,973.44), the annual entity tax (up to ₡231,100) and cesantía exposure, and price any local credit within the BCCR ceiling.

Step by step

Run each home market template (employment, credit, lease, consumer terms) against the pages in this section.
Calendar January (entity tax), early January and July (interest ceilings) and December (aguinaldo).
Review dollar denominated local contracts for the colón payment option.

Common traps

Contract clauses cannot override the statutory minimums described here.
Groups also active in Argentina should not carry over Argentine FX, tax treaty or trade assumptions; Costa Rica has no income tax treaty with Argentina. See The Argentine Thread guide for the Argentine side.

Sources

← Who pays after a Costa Rican company closes: directors, liquidators, legal representatives and partnersA thirteenth month salary paid by 20 December, free of income tax and CCSS contributions →

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