Costa Rica (CR)
Costa Rica is Central America's most stable democracy — a small, lush republic that abolished its army in 1948 and instead invested in education, healthcare, and the environment.
Capital: San José
Region: Americas
Language: Spanish
Currency: CRC (₡)
Cost of living: Affordable (index 48)
Emergency: 911
Premium
Business Setup
Start a business or go freelance in Costa Rica.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 1. Register with Ministerio de Hacienda (Tributación Directa) — obtain your Número de Identificación Tributario Especial (NITE) if non-citizen, or use your cédula number if you have a DIMEX. Complete the "Solicitud de Inscripción en el Registro de Contribuyentes" form.
- 2 2. Register with CCSS as asegurado voluntario (voluntary insured) if not employed by a Costa Rican entity — visit any CCSS office with DIMEX and passport. You will pay a monthly premium based on declared income.
- 3 3. Obtain a Factura Electrónica (e-invoice) system — mandatory for registered taxpayers carrying out taxable economic activities. Register with an authorised provider or use Hacienda-linked tools where available. Choose from free or paid systems.
- 4 4. Determine your tax category at Hacienda — most freelancers register as "Trabajador Independiente" or register a company (SRL/SA) for more complex operations.
- 5 5. Set up a business bank account — most Costa Rican banks require DIMEX + Hacienda registration letter. BCR, Banco Nacional, BAC San José all serve freelancers.
- 6 6. Issue electronic invoices (facturas electrónicas) for all services to clients in Costa Rica. For foreign clients, you may use your foreign contract/invoice system but must report income to Hacienda.
- 7 7. Pay quarterly advance tax payments (pagos a cuenta) — 2% of net revenue in each quarter (Q1: March 31, Q2: June 30, Q3: September 30, Q4: December 31).
- 8 8. File annual income tax declaration (D-101) by March 15 for the prior calendar year.
Tax registration
Register at the Ministerio de Hacienda ATV (Administración Tributaria Virtual) portal at atv.hacienda.go.cr. For non-residents and residents without a cédula: obtain a NITE (Número de Identificación Tributario Especial) from Hacienda in person with DIMEX and passport. Hacienda will determine your tax regime (Renta Neta — standard deductions, or Renta Fija — simplified 25% on gross if elected for certain activities).
VAT threshold
13% IVA (VAT) applies immediately — there is no IVA registration threshold for freelancers working in regulated service sectors. However, if your services are purely professional (abogado, doctor, accountant, engineer — regulated professions), the IVA is 4% not 13%. Digital services to Costa Rican clients: 13% IVA. If exclusively providing services to foreign clients (income deemed foreign-source), IVA may not apply. Consult a contador público autorizado (CPA) for your specific situation.
Invoicing
Electronic invoicing (factura electrónica) is mandatory for registered taxpayers in scope. Invoices must include: date, invoice number, seller's NITE/cédula, buyer's name and ID, description of service, net amount, IVA breakdown, and total. Invoices must be generated through a Hacienda-authorised electronic invoicing system. Physical receipts (tiquetes) are no longer accepted for most purposes. Foreign clients: you may issue invoices in your client's preferred format but must report and declare the income in Costa Rica if it is locally sourced — foreign-source income is generally not required to be invoiced under Costa Rican law.
Social security
Freelancers without a Costa Rican employer must enrol as asegurado voluntario (voluntary insured) with the CCSS. Monthly premium is based on your declared monthly income from all sources and the CCSS assessment table, not a simple flat payroll rate. The CCSS can audit your actual income if declared amounts seem implausibly low versus lifestyle. Consider also enrolling in the OPC supplementary pension voluntarily for retirement savings.
💡 Costa Rica's territorial tax system means freelancers serving only foreign clients with foreign-source income pay 0% Costa Rican income tax on those earnings. However, this requires clear documentation that services were rendered for foreign clients from outside Costa Rica. If you serve Costa Rican clients, that income is locally sourced and fully taxable. Minimum tax payment: even with zero taxable income, freelancers registered with Hacienda may owe a minimum annual tax contribution. Having a Costa Rican contador público autorizado (CPA/accountant) — fee ₡200,000–₡600,000/year for small freelancers — is strongly recommended to navigate Hacienda's digital reporting requirements and avoid penalties.
🏢 Business Structures
SRL · Sociedad de Responsabilidad Limitada
Limited Liability Company (LLC)
No legal minimum (traditionally ₡10,000 symbolic, but no mandated minimum since 2012 reforms)
Min. capital
2–4 weeks for Registro Nacional inscription; additional time for CCSS, Hacienda, municipality registrations
Setup time
Liability: Limited to capital contributed. Members (socios) are not personally liable for company debts.
Setup cost: USD $500–1,500 (notary/lawyer fees, Registro Nacional fees, fiscal stamps)
Best for: Most expat businesses, small to medium enterprises, rental property holding companies, investment vehicles. The most popular structure for expats buying property through a company. Flexible management, no minimum capital, and lower accounting requirements than SA.
SA · Sociedad Anónima
Corporation / Joint Stock Company
No legal minimum (shares can be issued at any value)
Min. capital
2–5 weeks
Setup time
Liability: Limited — shareholders not personally liable beyond their share investment
Setup cost: USD $700–2,000 (slightly more complex structure than SRL)
Best for: Larger enterprises, companies with multiple shareholders, businesses seeking external investment, or companies that may list publicly in the future. The SA issues shares (acciones) which are more easily transferable than SRL quotas. Traditional structure for medium-to-large Costa Rican companies. Board of directors (junta directiva) structure required.
Empresa Individual · Empresa Individual de Responsabilidad Limitada (EIRL)
Single-Member Limited Liability Company
No minimum (must be registered with a stated capital)
Min. capital
1–3 weeks
Setup time
Liability: Limited — separates personal assets from business assets
Setup cost: USD $400–900
Best for: Solo entrepreneurs who want liability protection but operate as an individual. Less common than SRL for expats — most choose SRL even for solo ventures due to familiarity and flexibility.
Sociedad en Nombre Colectivo · Sociedad en Nombre Colectivo (General Partnership)
General Partnership
No minimum
Min. capital
1–3 weeks
Setup time
Liability: Unlimited joint and several liability for all partners — very risky
Setup cost: USD $300–700
Best for: Rarely used by expats due to unlimited personal liability. Professional partnerships (law firms, accounting firms) occasionally use this structure. Strong personal trust between partners required.
Sucursal · Sucursal de Sociedad Extranjera
Branch of a Foreign Company
No minimum — parent company capital applies
Min. capital
4–8 weeks
Setup time
Liability: Parent company bears full liability
Setup cost: USD $1,500–4,000 (more complex due to foreign document authentication requirements)
Best for: Multinational companies establishing a Costa Rican presence without incorporating a local entity. Requires authentication of all parent company documents, apostille, and Spanish translation. Regulated by the Registro Nacional de Personas Jurídicas.
Business Setup
Unlock the complete Business Setup guide for Costa Rica — including every detail, document, tip and link you need.
Become a SupporterSupport the guide on Ko-fi · Unlocks every premium section, everywhere