Foreign nationals must obtain temporary residence with work authorization before commencing employment. Employers sponsor work permits and must demonstrate that the role cannot easily be filled locally. Processing times can be several months, and permits are typically tied to the sponsoring employer.

• Employers must register with the Costa Rican Social Security Fund (CCSS) and the tax authority.
• Payroll is processed monthly.
• Employers are responsible for withholding income tax and employee social security contributions and remitting both employer and employee portions.
• Monthly filings and annual income reporting apply.

• Contracts may be indefinite or fixed-term, though indefinite contracts are standard.
• Written contracts are recommended and required in certain cases.
• Probation Period: Up to 3 months.
• Working Hours: Standard workweek is 48 hours (day shifts) and 42 hours (night shifts).
• Overtime: Paid at 150% of the normal rate.
• Termination: Notice or payment in lieu is required unless termination is for cause.‍
• Severance (cesantía): payable based on length of service, capped by law.

• Social Security Contributions (approximate combined rates):
  
  • Employer: ~26%
  • Employee: ~10.5%
• Annual Leave: Minimum 2 weeks of paid vacation per 50 weeks worked.
• Sick Leave: Paid through a combination of employer and social security coverage.
• Maternity Leave: 4 months paid (one month before and three months after birth), funded jointly by employer and social security.
• Paternity Leave: 2 paid days per week for four consecutive weeks following birth.
• Public Holidays: 9 mandatory paid public holidays.

• Tax Residency: Individuals residing in Costa Rica for more than 183 days in a tax year are considered residents.
• Residents: Taxed on Costa Rica–sourced income (territorial system).
• Non-Residents: Subject to withholding tax on Costa Rican–sourced income.
• Tax Year: January 1 – December 31.
• System: Progressive employment income tax rates.