Marchamo in Costa Rica: Guide for Expats & Vehicle Owners

Marchamo 2025 Costa Rica: Essential Guide for U.S. & EU Expats

Understand what the Marchamo is, who needs to pay it, how much it costs, and why it matters for vehicle owners and foreign investors in Costa Rica.

🔎 What Is the Marchamo Tax?

The Marchamo is a mandatory annual vehicle tax required by the government of Costa Rica. It includes:

  • SOA Insurance: Compulsory third-party liability coverage.
  • Vehicle Property Tax: Based on the fiscal value of the vehicle.
  • Additional Charges: Such as traffic fines, unpaid penalties, and municipal taxes.

👤 Who Is Required to Pay Marchamo?

  • All residents and non-residents with registered vehicles in Costa Rica.
  • Imported vehicles once they are officially registered.
  • Cars, motorcycles, ATVs, scooters, and all motorized vehicles.

Marchamo applies regardless of nationality. Registration with COSEVI or the National Registry activates the obligation.

📅 Marchamo Deadlines & How to Pay

  • Payment Period Opens: November 1, 2025
  • Deadline: December 31, 2025

Delays result in automatic fines starting January 1, 2026.

You can pay your Marchamo through several official channels:

⚠️ What Happens If You’re Late?

If you fail to pay the Marchamo before the deadline, you may face:

  • Daily interest on outstanding payments
  • Traffic police may impound your vehicle
  • Inability to renew other legal documents or vehicle permits

💵 Cost Breakdown of Marchamo

The total Marchamo cost is calculated based on:

  • The fiscal value of your vehicle
  • The model year and vehicle class
  • Any unpaid fines or pending violations

For example, a standard sedan may pay around $300 USD, while high-end SUVs or imported luxury vehicles may pay up to $8,000 USD.

🌍 Why the Marchamo Matters for Expats & Foreign Investors

  • Ensures compliance with Costa Rican traffic and fiscal laws
  • Avoids future legal complications or driving restrictions
  • Maintains your vehicle’s legal status for resale or import

📝 Frequently Asked Questions (FAQs)

How much is Marchamo for a U.S. expat?

It depends on the fiscal value. Use the INS portal to estimate your fee.

Can I pay Marchamo from abroad?

Yes. Online payment is available via international cards on the INS website.

Do I need to pay if I don’t use the car?

Yes, the Marchamo is mandatory for all registered vehicles, regardless of use.

Is the payment transferable?

No. Marchamo is specific to each vehicle registration per year.

What if I sell my car?

The Marchamo remains valid for the new owner for the same calendar year.

Is full insurance included?

No. Only basic SOA coverage is included. Full or additional coverage is optional.

Attorneys in Costa Rica | Corporate, Real Estate & Immigration Experts

Attorneys in Costa Rica: Trusted Legal Services for Foreign Investors

When you’re investing, relocating, or launching a business in Costa Rica, the legal landscape shouldn’t be a hurdle—it should be your launchpad. At AG Legal, we specialize in guiding foreign investors, expats, and entrepreneurs through every legal step with clarity, confidence, and care.

 

🇨🇷 Real Estate, Immigration & Corporate Attorneys in Costa Rica

Why Choose AG Legal?

We provide real estate, immigration, and corporate legal services in Costa Rica with a deep understanding of local laws and international expectations. Whether you’re investing, relocating, or launching a business, our expert team ensures legal certainty.

📘 Learn About Buying Land

Our Legal Services

🧱 Real Estate Law

From due diligence and contract review to title registration, we handle every step of the property purchase process.

🛂 Immigration Law

We assist with pensionado, rentista, digital nomad, and investor residency applications in Costa Rica.

🏢 Corporate Law

Start your business in Costa Rica with confidence. We help with entity formation, compliance, and legal support.

Useful External Resources

Pay your Marchamo (vehicular tax) directly on the Instituto Nacional de Seguros (INS) website.

Check your legal status on the Registro Nacional.

Get a Personalized Consultation

Let us help you navigate the legal landscape in Costa Rica. Our team is ready to guide you every step of the way.

📩 Contact Us Now

Is Costa Rica Safe?

Is Costa Rica Safe? Essential Safety Tips and Insights for Travelers in 2025

Costa Rica is considered safe for travelers, ranking as one of the safest Latin American countries on the Global Peace Index. The Costa Rican government has abolished its army and focused on environmental protection and social welfare, creating a peaceful atmosphere for locals and visitors alike. The Costa Rican authorities have also introduced proactive measures to ensure national safety, especially in tourist areas. However, as in every country, it’s essential to remain cautious and avoid isolated areas, particularly in San José and unfamiliar places.

1. What is the Crime Situation in Costa Rica?

While Costa Rica is generally safe, the country does experience certain types of crime, especially petty crimes like theft and pickpocketing, which are common in high-traffic tourist zones. Violent crime is less frequent but can include purse snatching and armed robberies, often related to illegal drugs. Visitors should monitor their belongings and supervise valuables, especially on the beach or busy areas. The Costa Rican government has recently implemented more robust safety measures in popular areas to curb crime rates and ensure travelers’ peace of mind.

2. How Safe is San José and Other Urban Areas?

San José, Costa Rica’s capital, offers cultural attractions but is known for higher petty crime rates than rural areas. Exercise caution, especially in crowded spaces, to stay safe and be aware of your surroundings. Secure your accommodation by ensuring that doors and windows have appropriate locks and avoid isolated or unfamiliar areas at night. To ensure safety, reliable transportation, such as Uber, is recommended for getting around urban areas.

3. Is Costa Rica Safe for Female and Solo Travelers?

Costa Rica is generally safe for solo and female travelers who can enjoy exploring the country. However, to ensure personal safety, it’s recommended to avoid isolated areas, travel in groups where possible, and trust your intuition. Be mindful of your belongings in busy tourist spots and avoid attracting unwanted attention. Female travelers should also consider staying in accommodations with high safety standards and letting someone know their travel plans.

4. Do You Need Travel Insurance for Costa Rica?

Travel insurance is essential for anyone planning to travel to Costa Rica. Comprehensive travel insurance covers medical expenses, emergency evacuation, and potential theft, ensuring travelers feel protected. Costa Rica’s natural hazards, such as the rainy season and occasional flooding, make travel insurance especially important. In emergencies, travel insurance can provide much-needed support, including assistance for health-related incidents and coverage for unexpected cancellations or interruptions.

5. What Should You Know About Petty Crime in Costa Rica?

Petty crime, including pickpocketing and purse snatching, is most common in high-traffic tourist areas. To minimize risks, keep valuable items such as passports, wallets, and electronics out of sight and avoid leaving valuables unattended in public places or tourist areas. Costa Rica’s busiest spots, particularly in San José, Puntarenas, and Limón, see the most instances of petty theft, so travelers should be cautious in these locations.

6. Tips for Staying Safe on Costa Rica’s Beaches

Costa Rica’s beaches are famous for their stunning beauty, but they can also have strong currents and a limited lifeguard presence. Therefore, always swim in designated areas and avoid strong rip currents. Beach safety also includes watching out for petty crime.

In popular areas like Puerto Viejo in Limón or Jacó in Puntarenas, the party scene can be intense, with frequent drug use and heavy alcohol consumption, which can increase the risk of theft or scams. To stay safe, it’s best to be cautious on these beaches, go with a group, and avoid leaving personal belongings unattended. If you’re staying in an Airbnb, only invite trusted people and remain aware of your surroundings. In San José, the capital, be mindful at night, particularly in busy areas like Barrio Escalante, as some spots are less secure. Always check with your hotel staff for local safety tips.

7. How to Prepare for Natural Hazards in Costa Rica

Costa Rica’s rich landscape includes active volcanic areas, frequent earthquakes, and a rainy season that can cause flooding and landslides, particularly in rural areas. During the rainy season, exercise caution if traveling to regions prone to flooding, such as Limón and Puntarenas, and stay updated on local advisories. Understanding evacuation routes and safety instructions is essential, particularly when visiting areas near volcanic sites or prone to landslides. Costa Rica’s government provides frequent updates and safety guidelines to ensure travelers’ safety during these natural events.

8. Health and Safety Tips for Travelers

Health precautions are essential when visiting Costa Rica. In some rural areas, mosquito-borne illnesses, including Zika, can pose a risk, so mosquito repellent and proper clothing are recommended to reduce exposure. Tap water is generally safe in cities, but bottled water is advisable in remote areas. Travel health insurance can help cover medical emergencies and provide peace of mind throughout your trip.

9. Are Travel Advisories in Place for Costa Rica?

The U.S. and other embassies occasionally issue travel advisories for Costa Rica, typically encouraging travelers to be mindful of petty theft and health risks like mosquito-borne illnesses. To stay informed of any safety changes, it is always advisable to check your home country’s latest advisories before travel. Travelers are also encouraged to register with their embassy to ensure extra security and access to updated safety information. Our Legal Firm is a qualified supplier to the US and UK Embassies.

Key Tips for Staying Safe

  • Stay Informed on Crime: Keep valuables out of sight and secure your belongings, particularly in crowded areas.
  • Prepare for Natural Hazards: Know evacuation routes and be cautious during the rainy season and in areas near active volcanoes.
  • Beach Safety: Swim only in designated areas with lifeguards, and do not leave valuables unattended on the beach.
  • Invest in Travel Insurance: Comprehensive insurance can cover health emergencies, theft, and other unexpected incidents.
  • Health Precautions: Use mosquito repellent in rural areas and bottled water in remote locations.
  • Check Travel Advisories: Stay updated on government recommendations and register with your embassy for additional security.

These guidelines can ensure a safe and enjoyable experience for travelers planning to visit, live in, or invest in Costa Rica. By following these tips, visitors can enjoy all that Costa Rica offers with peace of mind, knowing they’re well-prepared for their journey.

Contact us: info@aglegal.com

Starting a Business in Costa Rica: Tips and Steps

How to Start a Business in Costa Rica by AG Legal

If you’re considering starting a business in Costa Rica, you’re making a smart move! Our country offers a favorable business environment, political stability, and unique investment opportunities. As a leading hub for foreign investment, AG Legal has helped countless entrepreneurs navigate the company registration process, and we’re here to guide you every step of the way.

Why Choose Costa Rica to Open a Business?

Costa Rica is a top destination for entrepreneurs worldwide; it’s a thriving hub for businesses expanding into Latin American markets. With a favorable business climate, robust free trade agreements, and a skilled workforce. At AG Legal, we’ve seen a surge in business ventures ranging from tech startups to eco-tourism enterprises, all seeking to tap into Costa Rica’s rich potential.

So why should you start a business in Costa Rica? The reasons are clear:

  • Strategic location: Access to North and South American markets.
  • Political stability: A long-standing democracy with a pro-business government.
  • Sustainability: A global leader in eco-friendly initiatives that appeal to businesses with a green focus.

Legal Requirements for Company Registration in Costa Rica

Understanding the legal requirements to start a business can be overwhelming, especially if you must familiarize yourself with local regulations and legal entities. We specialize in helping companies comply with Costa Rica’s legal framework, ensuring a smooth and hassle-free setup process.

Here are the essential legal steps:

  • Registering the company: Your business must be registered with the National Registry. This step also involves preparing the Articles of Incorporation, the company name, which outlines the company’s structure, shareholders, and objectives.
  • Social Security registration: All businesses must be registered with the Costa Rican Social Security Fund (CCSS), Caja Costarricense de Seguro Social. This is mandatory for employing staff and contributing to the country’s healthcare and pension systems.
  • Tax registration: You must register with the Costa Rican Tax Administration (Ministerio de Hacienda) to obtain a corporate tax ID. This ensures your business complies with tax regulations and that you pay all of them.

By working with AG Legal, you can rest assured that you’re following all the necessary steps and not missing any critical details.

Types of Business Structures in Costa Rica

One of the first decisions you’ll make when you set up a business in Costa Rica is choosing the proper business structure. This decision affects everything from taxation to personal liability, so it’s crucial to get it right. Here are the most common structures:

  • Sociedad Anónima (S.A.): This is a corporation where the shareholders have limited liability. It’s ideal for larger businesses that require flexibility.
  • Sociedad de Responsabilidad Limitada (SRL): This is a Limited Company (LTDA) with limited liability to the capital invested. Smaller businesses often prefer this due to its straightforward structure.

Each structure has its pros and cons, and at AG Legal, we can help you decide which option best suits your business needs.

Foreigners Starting a Business in Costa Rica

Are you a foreigner looking to start a business in Costa Rica? Good news! The process is open to foreigners, but there are specific requirements to be aware of. For instance, while residency is not mandatory for owning a business, it is required if you plan to work directly in your enterprise. But let’s be clear: you can consider living in Costa Rica with the risk that you may not want to return to your country.

At AG Legal, we are experts in guiding foreign investors through the business registration process. We understand the nuances of local regulations and can help you navigate immigration and legal requirements smoothly so you can focus on growing your business. Our clients have praised us for making their transition to Costa Rica seamless, and we’re here to do the same for you.

How to Obtain a Business License

Once your company is registered, you need to secure a business license (known locally as a “patent”) from the local municipality. This license allows your business to operate legally within the chosen jurisdiction. The process involves:

  • Application submission: Documents proving company registration, tax ID, and local permits.
  • Additional permits: Depending on your type of business, extra licenses are required, especially in regulated industries like food service or construction.

For example, if you plan to open a restaurant, you’ll need health and safety permits. AG Legal can help you understand exactly what your business needs to stay compliant and fully operational.

Opening a Bank Account for Your Business

A bank account for your business is essential for handling daily operations, managing payroll, and receiving payments. To open an account in Costa Rica, you must present proof of company registration, tax information, and valid identification.

AG Legal has partnerships with local banks, including Banco de Costa Rica, to simplify this process. We’ll ensure you meet all legal requirements and make the banking setup as smooth as possible.

Tax Requirements and Obligations

All companies in Costa Rica must comply with Costa Rican tax regulations. This includes paying corporate taxes, which vary based on your company’s revenue. Additionally, businesses must contribute to the Costa Rican Social Security System (CCSS), which funds healthcare and pensions for employees.

Our sister’s company, AG BPO Services, has experienced accountants who will ensure your business practices comply with local laws and help you avoid penalties and fines.

Business Environment: Opportunities and Challenges

Costa Rica’s business environment is one of the most dynamic in Latin America. The country provides excellent business opportunities with a stable economy, a strong focus on education, and a thriving tourism sector. However, like any market, it has its challenges.

The bureaucratic processes involved in company registration and obtaining licenses can be complex. Additionally, while Costa Rica’s cost of living and doing business can be higher than in some neighboring countries, the benefits of operating here—such as political stability, safety, and a well-educated workforce—often outweigh these challenges.

Register a company in Costa Rica with a good lawyer includes a good reputation in international trade. Costa Rica is part of the OECD, which gives peace of mind and, at the same time, compliance with obligations such as filing an ultimate beneficial owner, all against money laundering.

If you want to start a Costa Rica adventure with a specific business and would like expert guidance, contact us at AG Legal for your business success.

We have extensive experience helping companies of all sizes succeed in this vibrant market, and we’re ready to assist you at every step.

Feel free to contact us: info@aglegal.com

Expat Living in Costa Rica: What You Need to Know Before You Move

Expatriate in Costa Rica: “Pura Vida” Expat Living

Costa Rica has become a magnet for expats worldwide for the high standard of living, but before you pack your bags and book your flight, there are a few things you need to know about living as an expat in Costa Rica.

What is the meaning of expatriates?

An expatriate has left their country of origin to reside in another country.

What is the difference between a foreigner and an expat?

  • Foreigner: citizen of another country.
  • Expat: a foreigner who lives in a foreign country long term as a non-immigrant. Usually, it is a business or work assignment. For example, the Japanese Toyota staff at a Toyota plant in Germany stays in Germany for 5- 10 years at a time.

Why do many expats live in Costa Rica?

There are many reasons why Costa Rica is such a popular destination for expats. Here are just a few:

  • Stunning natural beauty: Costa Rica is a small country with an enormous punch for natural beauty. From lush rainforests and volcanic mountains to beautiful beaches and coral reefs, there’s something everyone can enjoy.
  • Affordable cost of living: Compared to many other developed countries, the cost of living in Costa Rica is relatively low. This makes it an attractive option for retirees and budget-minded travelers alike.
  • Laid-back lifestyle: Costa Ricans are known for their relaxed and laid-back attitude. This Pura Vida lifestyle is infectious, and it’s one of the things that makes living in Costa Rica so special for many expats.
  • Friendly people: Costa Ricans are known for their warm hospitality. You’re sure to feel welcome from the moment you arrive and into your plan to live.
  • Costa Rican government: Costa Rica is a democratic and stable government. This makes it a safe and secure place to live.
  • Establishment of foreign companies: Companies from the United States, Spain, Canada, and India establish operations in Costa Rica, and managers fall in love with the country.
  • Public healthcare: Costa Rica is the Central American country with the best social security service, among the best in Latin America. Private healthcare is excellent and has world-class clinics and private hospitals, but it is more expensive; you will find both in Guanacaste and San José.
  • International education: If you should bring your children to Costa Rica, there are international schools with international validity, excellent English levels, and premier universities.
  • Real Estate Investments: Expats seeking to be a real estate agency; many business opportunities serve to continue generating money; whether you are a retiree or investor, it is always a source of income in Costa Rica and attracts expats.
  • Safety: Costa Rica is ranked in the Top 20 in the world and the safest in Latin America. Also, it is one of the safest countries for travel and backpacking in Central America, but that doesn’t mean you should let your guard down.

Planning Your Move to Costa Rica

Once you decide that Costa Rica is the right place for you, it’s time to start planning your move. Here are a few things to keep in mind:

  • Visas: You must obtain a visa to live in Costa Rica; the U.S. and Canada do not require a visa, just a passport.
  • Residency: Expats are attracted to staying for over a few months, so you may want to consider applying for residency in Costa Rica as a rentist, investor, or retired expat. This will give you the right to live and work permanently. Also, your wife is covered as a dependent of an expat living in Costa Rica, with a new high quality of life!
  • Finding a place to live: Various housing options are available to buy a property in Costa Rica, from beachside condos to mountain cabins. The best place to live for you will depend on your budget and lifestyle; if you like surf can be Tamarindo o Jaco in the Pacific Ocean; if you like the city, it can be San José, and if you like relaxed and tropical beaches live in the Caribbean Sea, AG Legal can help you find the perfect place to call home.

Adjusting Plan to Life in Costa Rica

Once you’ve arrived in Costa Rica, giving yourself time to adjust to your new life is essential. Here are a few tips:

  • Learn some Spanish: While you can get by in some tourist areas without speaking Spanish, learning the language will make your life in Costa Rica much easier. There are many Spanish language schools in Costa Rica, so you can find one that fits your needs and budget.
  • Embrace the culture: Take some time to learn about the local customs and traditions. You can do this by attending festivals, visiting museums, and talking to local people in friendly communities. Wherever you go
  • Get involved in the community: Costa Rica has many expat communities. Getting involved in one of these communities is a great way to meet new people and make friends.
  • Be patient: Adjusting to a new life in a new country takes time. Don’t get discouraged if things don’t happen overnight. Just be patient and enjoy the journey.

Living as an expat in Costa Rica can be an enriching experience. With careful planning and preparation, you can ensure that your transition to life in paradise is smooth and successful.

AG Legal can help you with expat living—residency, visa, and property in Costa Rica.

We have a team of experienced lawyers who specialize in immigration law. We can help you with everything from obtaining a visa to applying for residency. We also offer other legal services, such as real estate and business law.

If you live in Costa Rica, you can contact AG Legal today. We’ll be able to help you. info@aglegal.com

Costa Rica Gun Laws: What a Expatriate Need to Know

Exploring Strict Gun Laws in Costa Rica

Costa Rica boasts some of the strictest gun laws in Central America. Unlike the United States, where gun ownership is a constitutional right, Costa Rica’s gun control is rooted in its unique history and cultural values. Following a bloody civil war in 1948, the country abolished its military and opted for a demilitarized democracy, prioritizing peace and social harmony. This commitment to peace is reflected in its stringent gun laws.

This article will delve into various aspects, from gun ownership and control laws to obtaining a gun permit. Whether you’re a Costa Rican citizen, a permanent resident, or an expat, navigating the intricacies of firearm regulations is essential.

Outline:

  • Gun Ownership Laws in Costa Rica
  • Restrictions and Prohibited Firearms: Knowing the Limits
  • Bringing Firearms to Costa Rica: Crossing the Border with Caution
  • Self-Defense in Costa Rica: Beyond the Gun
  • Important Things to Remember: Your Costa Rican Gun Law Cheat Sheet
  • The process to apply for a permit to carry a gun in Costa Rica

Gun Ownership Laws in Costa Rica

Costa Rica has firearms and explosives laws and regulations, and the Ministry of Security, which regulates and grants permits to gun ownership in Costa Rica, registers them, reports their sale or loss, and others.

The possession of weapons allowed in the domicile is permitted for its inhabitants’ security and legitimate defense, who must take all indispensable security measures to avoid accidents and for sporting use.

Restrictions and Prohibited Firearms in Costa Rica: Strict gun control laws

Even if you manage to obtain a permit, Costa Rica imposes strict limitations on gun ownership:

  • Number of firearms: Individuals are restricted to owning a maximum of two guns.
  • Types of firearms: Assault weapons, automatic firearms, and high-caliber rifles are prohibited.
  • Ammunition: The purchase of ammunition is strictly controlled, with limits exclusively for the weapon registered in your name.
  • Criminal Record: Persons with a criminal or police record for crimes against property, domestic violence, sexual crimes, crimes against life, crimes against freedom, and infractions to the Law of Narcotics, Psychotropic Substances, Drugs of Unauthorized Use, and Related Activities, Organized Crime and any other crime where violence is involved.
  • Domestic Violence: as of 2019, authorities may seize weapons and objects used to intimidate or assault, as well as any other weapons found in possession of the alleged aggressor or registered in his or her name, and will order the cancellation of gun carrying permits. This applies equally to foreigners even with a valid permanent residency card.

Bringing Firearms to Costa Rica: Crossing the Border with Caution

Traveling to Costa Rica with your firearm is a complex procedure before a Costa Rican Entity:

  • Prior authorization: Obtaining written permission from the Costa Rican government months in advance is mandatory; you have to contact comercializacionydesalmacenajedga@seguridadpublica.go.cr or entry to https://www.controlpas.go.cr for a digital request.
  • Temporary import permit: Securing a temporary license upon arrival is essential.
  • Strict compliance: Failure to comply with regulations can result in confiscation and legal repercussions.
  • In case of being a foreigner, their migratory condition must be a permanent resident of free status in force.

Sporting Permission for foreigners to enter weapons and shots into Costa Rica.

Foreigners who temporarily enter the country with weapons permitted for the exclusive use of sporting competitions may import up to five hundred shots free of duty as part of their luggage. They may also temporarily enter the country with up to four weapons allowed for the exclusive use of sporting competitions or for hunting purposes. They must inform the customs authorities at the time of entry.

Self-Defense in Costa Rica: Beyond the Gun

While gun ownership might seem like the ultimate self-defense tool, Costa Rica offers alternative options:

  • Pepper spray: Carrying for self-defense is legal and readily available.
  • Alarm systems: Investing in a reliable home or business alarm system provides an extra layer of security.
  • Community watch programs: Participating in local community watch programs fosters collective safety and vigilance.

Essential Things to Remember: Your Costa Rican Gun Law Cheat Sheet

  • Costa Rica has strict gun laws compared to most countries, including jail consequences.
  • Expats in Costa Rica must have a valid permanent residency.
  • Owning a firearm requires a permit, extensive background checks, and a mental evaluation.
  • Certain types of firearms are prohibited.
  • Bringing your gun into Costa Rica involves a complex authorization process.
  • Alternative self-defense options like pepper spray and community watch programs are viable.

By understanding and complying with Costa Rica’s gun laws, you can ensure a safe and enjoyable experience in this beautiful country. Responsible gun ownership and respect for local regulations are vital to preserving Costa Rica’s peaceful Pura Vida way of life.

The process to apply for a permit to carry a gun in Costa Rica:

Gun Ownership and Registration:

  • A positive mental fitness report issued by a competent professional (psychologist) must be included in the CONTROLPAS system.
  • To have passed the theoretical-practical examination on the use of firearms conducted by the National Police School, which must be included in the CONTROLPAS system.
  • Have an updated fingerprint record in the Police File of the Ministry of Public Security, which must be included in the CONTROLPAS system.

The steps you must follow to apply for the registration of your firearm in the system www.controlpas.go.cr are as follows:

If you are an individual, you must:

  • Enter the site Government Information
  • Have a Digital Signature device.
  • Register as a user on the platform.
  • Complete the application at www.controlpas.go.cr.
  • The system verifies criminal records, updates fingerprints in police files and mental suitability, and approves theoretical-practical exams.
  • Verifies the document of ownership of the weapon.

Purchase a new gun: It is also important to remember that before purchasing a firearm in an official gun shop in Costa Rica, you must already be registered and have a gun permit.

We invite you to contact our law firm to proceed with the appropriate procedure to carry guns in Costa Rica. We’ll be happy to help you. info@aglegal.com

Drinking Age in Costa Rica for 2024: What People Need to Know

Drinking Age in Costa Rica: Drinking Laws, Penalties and Culture

We have good news: Costa Rica´s legal drinking age is 18 years old. Costa Rica’s drinking laws and culture can be confusing, especially for first-time visitors. Worry not, thirsty adventurers!

Sun, Sand, and Sipping Responsibly: Legal Drinking Age in Costa Rica

The minimum legal drinking age in Costa Rica is 18 years old, as in many Latin American countries. This applies to both the purchase and consumption of alcoholic beverages. In addition, many stores are prohibited from selling alcoholic drinks before 11:00 am.

While sipping a cerveza on the beach sounds tempting, consuming alcohol in public places is not allowed; the police on the beach will hardly notice you, but if you are on the street with a beer in your hands and do not behave properly, you will get into trouble. You can stick to designated bars and restaurants to avoid any unwanted attention.

Beyond the Legal Age: Understanding Costa Rican Drinking Culture

Costa Ricans like socializing over a drink but prioritize responsible consumption. There are party areas to drink alcohol and dance all night, like La California in the capital, Tamarindo in Guanacaste Beach, and Jaco Beach. Still, most other places are where you will see a lot of drinking among friends and family.

Local brews are a must-try! Sample Imperial, a crisp lager, or Pilsen, a refreshing pilsner. Indulge in Guaro Cacique, made from sugar cane; this liquor is often enjoyed in cocktails to taste Costa Rica’s spirit.

Tipping is not customary in Costa Rica, but a small gratuity for good service is always appreciated. The Costa Rican service’s goal is for the tourists to have a pleasant experience so that they come back. They don’t push for a tip as they do in other countries in Latin America.

Driving under the influence of alcohol in Costa Rica: Drinking Laws

You can also drive at the age of 18 in Costa Rica if you have a driver’s license from your country, but do not do it if you have been drinking; if the police catch you, they will do a breathalyzer test, if you have a blood alcohol concentration higher than zero point seventy-five grams (0.75 g) per liter of blood or with an air alcohol concentration higher than zero point thirty-eight milligrams (0.38 mg) per liter, it will be considered reckless driving, according with our criminal law with the following penalties:

  1. Prison sentence of one to three years (usually, you will be taken to jail and free the following day).
  2. disqualification to drive all types of vehicles in Costa Rica, from two to four years.
  3. Hefty fine: Traffic ticket for an approximate amount of $700

The same penalties apply if you drive at a speed of more than 150 kilometers per hour on any road. It´s important to respect the speed limits and to pay attention to the authorities if you are stopped.

Essential Tips for Drinking in Costa Rica:

  • Always carry an accepted form of identification, even if you look older than 18. It is a good idea to carry your Passports or government-issued IDs to confirm your age.
  • Respect the age restriction. You’ll be hard-pressed to find a bartender willing to serve minors or a store selling alcohol to minors.
  • Drink responsibly. Pace yourself, stay hydrated, and avoid overindulgence. Remember, you’re on vacation, not in a drinking competition.
  • Public drinking is a no-go. Enjoy your beverages in designated areas and avoid open containers in public spaces.
  • Embrace the local vibe, vibrant culture, and tropical climate. Savor the relaxed atmosphere, try local brews, appreciate the slower pace of Costa Rican drinking culture, and share the experience with locals and tourists.

So, raise a glass to responsible fun in Costa Rica! Buen provecho!

P.S. Enjoy your time in Costa Rica responsibly; explore beyond the beach! San Jose, the capital, offers a vibrant nightlife scene with trendy bars and craft breweries. Just remember to keep your wits about you and enjoy the night responsibly.

If you have any problems as a tourist and require legal representation, we will gladly help you.

We are the number one firm for legal representation of tourists and foreigners in Costa Rica.

info@aglegal.com/2257-0006

Government of Costa Rica: Learn about the freedom, benefits and others.

Exploring Costa Rica Government

Costa Rica in Central America is often hailed as a beacon of freedom in the world; we will delve into the intricate workings of Costa Rica’s government and the robust democratic principles that shape its identity.

1. Costa Rica: A Democratic Republic Unveiled

  • What makes Costa Rica stand out in the realm of democracy?
  • How has the absence of a military influenced Costa Rican governance?

Despite its modest size, Costa Rica is a democratic republic, which stands as a testament to the resilience of democratic values. The absence of a military is a distinctive feature; yes, you wrote right, Costa Rica has no military, fostering a unique political landscape emphasizing diplomacy and peaceful coexistence.

2. Costa Rica’s Political Landscape

Costa Rica’s commitment to free and fair elections is a cornerstone of its democratic foundation. Additionally, robust government oversight mechanisms contribute to a transparent and accountable political landscape.

You will not see dictatorships, totalitarianism, or abusive decrees. The country’s policies are based on human rights, environmental rights, and equality.

3. Electoral Process:

  • How are deputies (members of Congress) elected in Costa Rica?
  • What role do political parties play in the electoral process?

Suppose you have the opportunity to be in Costa Rica. In that case, you will see a big party of various political parties, families gathered, real-time news about vote counting, schools are the voting centers, and all people can enter; it is an experience of total democracy.

Voting on the first Sunday of February every four years defines the President and 57 legislative assembly deputies for each of the 7 provinces by a majority of valid votes exceeding forty percent. Suppose none of the formulas reaches this majority. In that case, a second round shall be held on the first Sunday of April of the same year between the two formulas that received the most votes, and the formulas with the highest number of votes shall be elected. Legislative Assembly Deputies are elected for a four-year term and elected by proportional representation. There also are two vice presidents, but these are appointed with the President’s election.

4. Functioning of Government: Checks and Balances in Action

  • How do constitutional checks and balances contribute to Costa Rica’s governance?
  • What is the role of the Supreme Electoral Tribunal in ensuring a fair political process?

Costa Rica boasts a constitutional solid checks and balances system, ensuring power is not concentrated in one Branch of government.

Political parties are governed under the restrictions and supervision of the Supreme Tribunal of Elections, the public entity in charge of the entire electoral process, transparency, and counting.

5. Political Parties: The Pillars of Costa Rican Democracy

Political parties are the lifeblood of any democracy, and Costa Rica is no exception. This is the list of the last six presidents, along with their political parties in Costa Rica:

Rodrigo Chaves Robles- Social Democratic Progress, 2022-2026 (actually)

Carlos Alvarado Quesada- Citizen Action Party, 2018-2022

Luis Guillermo Solís Rivera- Citizen Action Party, 2014-2018

Laura Chinchilla Miranda- National Liberation Party, 2010-2014

Oscar Arias Sánchez- National Liberation Party, 2006-2010, 1986-1990 (Nobel Peace Prize)

Abel Pacheco de la Espriella- Social Christian Unity Party, 2002-2006

6. Branches of Government: A Symphony of Governance

  • How does power alternate in Costa Rica?
  • What is the role of the Constitutional Chamber in shaping the legal landscape?

Costa Rica’s governance is orchestrated by multiple branches of government, ensuring a dynamic and inclusive decision-making process. Power regularly alternates, and the Constitutional Chamber plays a pivotal role in interpreting and upholding the Constitution.

Costa Rica’s organization is based on the Executive, Legislative, and Judicial branches. The Unicameral Legislative Assembly makes and proposes the laws of the country, the Executive Branch approves them as head of government and enforces them, and the Judicial Branch is in charge of the administration of justice.

State agencies enjoy considerable operational independence; this is important since communication and paperwork are sometimes a problem in these public entities, and if you do not speak Spanish, even more so.

Costa Rica used to protect workers who attempted to form unions; this freedom of movement is constitutionally protected.

7. Costa Rica’s Global Freedom Impact

  • How has Costa Rica positioned itself on the global stage regarding freedom?

Costa Rica stands out worldwide for its freedom of speech and press, human and environmental rights, and not having an army since 1948, when former President José Figueres decreed the abolition of the military on December 1.

Another positive aspect in which Costa Rica stands out is the Social Guarantees, which were a series of progressive political reforms carried out in Costa Rica in the 1940s as a result of the alliance between various political and religious figures for the benefit of the working classes, of which the most transcendental for national life are: the Costa Rican Social Security Fund (1941) and the Labor Code (1943).

Key Takeaways Costa Rica Government:

  • Costa Rica’s democracy is marked by the absence of a military, emphasizing diplomacy and peaceful coexistence.
  • Free and fair elections are pivotal in shaping Costa Rica’s political landscape, ensuring transparency and accountability.
  • The electoral process involves proportional representation and active participation from various political parties.
  • Constitutional checks and balances, overseen by the Supreme Electoral Tribunal, contribute to the functioning of Costa Rica’s government.
  • Political parties, with the National Liberation Party (PLN) as a prominent example, are crucial in influencing Costa Rican governance.
  • Costa Rica’s governance is characterized by multiple branches, with power regularly alternating and the Constitutional Chamber shaping the legal landscape.
  • Costa Rica’s impact on the global stage is significant, with international recognition for its commitment to democracy and freedom.
  • Rallies and protests without government interference.
  • Abortion is illegal in Costa Rica except when a woman is abused.
  • The United States and Costa Rica have a good relationship; many American citizens visit Costa Rica annually to live a Costa Rica vacation.

Our firm will be able to guide you in your next adventure in this beautiful and peaceful country. Do not hesitate to contact us; we will be your guide for business and immigration: info@aglegal.com

Openning a Bank Account in Costa Rica

Opening a Bank Account in Costa Rica: The Complete Guide

Foreigners allowed
to open a bank account
ID + Proof of Income
Required for individuals & companies

The Costa Rican banking system is robust and modern, offering services for both residents and foreigners. Opening a bank account is essential for receiving payments, paying bills, and securing your funds against theft or loss.


Requirements for Opening a Bank Account

Profile Main Requirements
Individual (Resident) – Costa Rican ID (cédula)
– For foreign residents: valid DIMEX card
– “Know Your Client” form
– Proof of income
Individual (Non-Resident) – Valid passport + entry visa/stamp
– “Know Your Client” form
– Proof of income
– (Some banks may also request address or additional references)
Corporate – Certificate of good standing
– Company’s shareholder certificate
– Documentation for corporate reps
– Proof and explanation of origin of funds
– Last fiscal financial statements (audited or certified) or projected cash flow if new

Note: Requirements and procedures may vary between banks; it’s best to check directly. For non-residents, banks increasingly accept passports and select bills/contracts for address verification.

Typical Step-by-Step Process

  1. Choose a reputable bank (public or private, see summary table below).
  2. Gather all documentation required by the institution.
  3. Fill and sign the “Know Your Client” form (anti-money-laundering compliance).
  4. Make the initial deposit (amounts vary by bank/account type).
  5. Wait for compliance approval to activate your account.
  6. Start using online and branch services once approved.
Tip:
If you’re denied an account at one institution, don’t be discouraged—requirements and flexibility differ from bank to bank. Try another bank or consult a legal specialist.

Main Banks in Costa Rica: Public v. Private

Bank Type Features
Banco Nacional Public Largest, high stability, best for secure holdings and broad reach
Banco de Costa Rica Public Solid reputation, strong government backing
BAC Credomatic Private Excellent online services, streamlined for foreigners
Scotiabank (Costa Rica) Private Flexible requirements, competitive digital platforms
Promerica Private Modern branches, strong online experience

AML (Anti-Money Laundering) & Ongoing Compliance

  • All banks must comply with Law 8204 (anti-money-laundering); account holders must periodically update their “Know Your Client” info (at least once a year).
  • Proof of income or source of funds is mandatory for all individual and corporate accounts.
  • If you fail to update your profile or answer compliance requests, the bank can close your account.
Important:
Be transparent with your income sources and respond quickly to bank compliance updates to keep your account active.

Frequently Asked Questions

Can I open a bank account as a non-resident foreigner?
Yes. Most banks will allow foreign nationals to open an account with a passport (often requiring a tourist visa stamp), proof of address, and proof of income, but the process is easier with a residency card.
Is there a minimum deposit?
This varies by bank, but usually starts as low as $20 USD. Check with each bank for specific requirements.
What if my application is rejected?
This is common—simply apply at a different bank. Requirements and policies vary, so persistence pays off.

Requisites to Apply as a Digital Nomad

Welcome to our blog on becoming a digital nomad in Costa Rica! This small country, located in Central America, might be the perfect destination for you if you’re a young adult looking to escape the traditional career path and work remotely while exploring a new country. With its stunning natural beauty, friendly locals, and relatively low cost of living, Costa Rica has become a popular choice for digital nomads of all ages. In this blog, we’ll introduce you to what it’s like to be a digital nomad in Costa Rica as a young adult and provide tips and resources to help you get started. Whether you’re looking to live in Costa Rica long-term or take a short-term working vacation, this guide will help you navigate the challenges and opportunities of life as a digital nomad in this tropical paradise.

There is a New Law for Digital Nomads in Costa Rica

On Monday, July 4, 2022, the Regulation to Law 10008, named “Law to Attract Remote Workers and Providers of International Services,” was signed as the Law of Digital Nomads. With the regulation already in force, the requisites to apply as digital nomads are established. These regulations seek the economic reactivation of the country and encourage foreign workers to work in Costa Rica and to have remote work while enjoying the tourist attractions.

This new regulation allows foreign workers (digital nomads) not to face a tedious procedure before the General Direction of Migration and Immigration, the public institution in charge of processing the applications of digital nomads who want to work in our country.

Articles 2 and 4 of said Regulation are relevant because they establish a new migratory category for digital nomads, called “Worker or Remote Service Provider.” The digital nomad is the foreign person who “provides remunerated services remotely, in a subordinate manner or not, using a computer, telecommunications or similar means, in favor of a natural person or legal entity who is abroad, for which he receives a payment or remuneration from abroad for a minimum amount of three thousand US dollars per month ($3,000.00) and in case of requesting legal stay for their dependents of four thousand dollars per month ($4,000.00) (…).”

Digital nomads will have tax benefits such as exemption from payment of import taxes on personal computer equipment or total exemption from tax on utilities related to the income they receive from abroad.

Requisites for Digital Nomads Visa

Essential requirements to fulfill as a digital nomad are in articles 5, 7, and 8 of the Regulation, among them:

  • Proof of payment of one hundred dollars (USD$100) in favor of the Costa Rican government.
  • Images of the valid passport pages of the foreign person showing his/her photograph, personal data, and entry stamp to Costa Rica if the person has already entered the country.
  • Bank account statements accompanied by an affidavit stating that the financial statements were requested and obtained from the corresponding banking entity and indicating that the person has received an income from abroad for a minimum amount of three thousand dollars monthly during the last year ($3,000.00) or in case of requesting legal permanence for their dependents of four thousand dollars monthly in the previous year ($4,000.00).
  • Every foreign document that is provided must have an official translation into Spanish, made by a Notary Public or official Costa Rican translator.
  • Finally, when the migratory condition is granted, the foreign person will be able to enter Costa Rica and have three months to attend a face-to-face appointment where the photograph of the corresponding migratory document will be taken. For this appointment, the person shall provide the following:
  • Proof of payment of $90 for the issuance of the immigration document.
  • A valid passport and in good condition.
  • Medical Services Policy covers the applicant and his dependents for the entire stay in the country for at least fifty thousand dollars ($50,000.00).

Best Places to Live for a Digital Nomad in Costa Rica

Besides the practical considerations, many digital nomads choose Costa Rica because of its natural beauty and rich culture. The country is home to many national parks, reserves, beautiful beaches, and bustling cities.

Whether you are just starting as a digital nomad or are an experienced remote worker, Costa Rica is a great destination to consider. With its tax exemptions, strong internet connectivity, and natural beauty, it is no wonder that it has become such a popular choice among digital nomads. So, as a new member of the community of digital nomads in Costa Rica, the first question is where I will live and work.

Costa Rica offers beautiful places where to live; whether you want to stay in Costa Rica for the long term or for the short term,

As follow, you can find a suggestion of the best place in Costa Rica, where you can live and work

  • San Jose: As the capital and largest city in Costa Rica, San Jose offers a more urban environment and a wider range of amenities, including coworking spaces and reliable internet connectivity.
  • Manuel Antonio: Located on the Pacific coast, Manuel Antonio is a popular tourist destination known for its beautiful beaches and national park. It has a lively expat community and a variety of accommodation options.
  • Tamarindo: Another popular beach destination on the Pacific coast, Tamarindo is known for its surf culture and has a variety of cafes, restaurants, and coworking spaces.
  • Nosara: Located on the Nicoya Peninsula, Nosara is a small town known for its yoga retreats and eco-tourism. It has a laid-back vibe and a strong expat community.
  • Monteverde: Located in the mountains, Monteverde is known for its cloud forests and outdoor adventure activities. It has a small-town feel and a cooler climate.
  • Puerto Viejo. it is one of the best locations on the Caribbean coast, where you will be surrounded by exuberant nature and beautiful beaches. In this location, You will be part not only of a strong digital nomad community but also, but a strong foreign community

Do I need a Digital Nomad Visa to Enter Costa Rica?

You can enter the country with a Tourist Visa, where usually you will be allowed to stay 90 days in, and later, you then you can apply for digital nomad status for a period of 90 days in Costa Rica

Digital nomads have become a common sight in Costa Rica, with many choosing this Central American country as their destination of choice. The country’s stunning natural beauty, affordable cost of living, and strong internet connectivity make it an attractive place for those looking to work remotely.
One of the major draws for digital nomads in Costa Rica is that they are exempt from most taxes as long as they are not physically present in the country for 183 days or more per year. This means that digital nomads can take advantage of Costa Rica’s low living cost without worrying about paying taxes on their income.

Internet Providers

Those who are already in Costa Rica will find a good number of internet providers available to choose from. The Costa Rican Embassy can provide information on the different providers and help with any issues that may arise.
Internet providers in Costa Rica range from small, local companies to large international corporations, so digital nomads have a wide range of options. Some popular providers include Claro, Liberty, and ICE, all of which offer a variety of packages and speeds to suit different needs and budgets.

Do the Digital Nomads in Costa Rica Need to Pay Taxes?

After you get your digital nomad visa for Costa Rica, you can start to work. Based on the new law for digital nomads, as long as you stay in the Country, you don’t need to pay any income tax or any tax on your salary, which is a very good incentive, adding to the cost of living in Costa Rica, is lower than some other countries.

Can I Bring my Family with Me? 

Yes, you can bring your family with you. In such a case, the rest of the family members must be filed as dependent from the person who shows an income of $4.000 per month. All the members who will apply must comply with the same requisites as the main applicant.

 

 

 

Hiring a Lawyer in Costa Rica

The importance of hiring a lawyer in Costa Rica cannot be overstated. The legal system in Costa Rica can be complex, and having a knowledgeable and experienced lawyer on your side can make a big difference in the outcome of your legal matter.

Whether you are involved in a court case, negotiating a contract, immigrating to this beautiful country, or need advice on a legal issue, having a lawyer who is familiar with the laws and legal processes in Costa Rica can be invaluable. A good lawyer can help you navigate the legal system, protect your rights, and achieve the best possible outcome for your case.

But how do you go about hiring a lawyer in Costa Rica? The process can initially seem intimidating, but it’s pretty straightforward once you know what to do. Here are some critical steps to follow:

  1. Determine your legal needs: Before looking for a lawyer, you must understand what kind of legal assistance you need. Do you need a lawyer to help you with a specific legal issue, such as drafting a will, negotiating a contract, or ongoing legal representation in a court case? Understanding your legal needs will help you find the right lawyer.
  2. Research and compare lawyers: Once you know what kind of legal assistance you need, it’s time to start researching and comparing lawyers. You can do this through online directories, recommendations from friends or family, or by contacting the Costa Rican Bar Association.
  3. Understand the different types of agreements on legal fees: When hiring a lawyer in Costa Rica, you will likely be asked to enter into three different types of agreements: a contingency fee agreement, a flat fee agreement, or an hourly fee agreement.
  4. Sign the agreement: Once you have agreed to the terms of the agreement, it’s time to sign the contract and formally retain the lawyer’s services or at least to have some written support.

By following these steps, you can ensure that you have a qualified and experienced lawyer to help you navigate the legal system in Costa Rica and achieve the best possible outcome for your case. Don’t underestimate the importance of hiring a good lawyer – it can make all the difference in the world.

Is it necessary for the lawyer to be in a Law Firm?

In Costa Rica, a lawyer is not necessarily required to be part of a law firm to practice law. Lawyers in Costa Rica can choose to work independently or as part of both options. Have pros and cons to both options.

Working independently can give a lawyer more flexibility and control over their practice. Still, it can also be more challenging to build a client base and handle complex legal matters without the support of a team.

On the other hand, working as part of a law firm can provide access to resources and expertise that may not be available to an independent lawyer.

What is essential is to hire a good law firm in Costa Rica and verify that the lawyer is duly accepted in the bar of attorneys; sometimes, in our law firm, we have seen cases where because of the lack of verification, the client ended up involved in a big legal mess since that person who you think is a lawyer is not a person licensed to practice law.

We will analyze the most usual areas of law where the attorneys are consulted.

When do I need a Real Estate Attorney?

There are several situations where you may need to hire a real estate attorney in Costa Rica. Some common reasons to seek the services of a real estate attorney include the following:

  • Buying real estate: If you are buying or selling real estate in Costa Rica, the real estate attorney shall check the property before the Public Registry to check the historical movements on the title of the property, review the documents, and represent you in the transaction.
  • Reviewing and negotiating contracts: If you are entering a real estate agreement, such as a lease or purchase agreement, a real estate attorney can review the terms and negotiate any changes on your behalf.
  • Resolving disputes: If you are involved in a real estate dispute, such as a boundary dispute or a dispute over the terms of a contract, a real estate attorney can represent you in court and help you resolve the dispute.
  • Obtaining financing: If you need financing to purchase real estate in Costa Rica, a real estate attorney can help you negotiate the terms of the loan and review any related documents.
  • In Costa Rica, most Real Estate attorneys are notary publics, which means that usually, in any real estate transaction where the property title is transferred, you will need a notary public.

Overall, if you are involved in any real estate transaction or dispute in Costa Rica, it’s a good idea to seek the advice of a real estate attorney to protect your interests and ensure that the transaction is handled correctly.

When do I need an Immigration Attorney?

If you are planning to move to Costa Rica or are already living in, you will need help with immigration issues; you may consider hiring an immigration attorney. Here are some everyday situations in which you might need an good legal service:

  1. Applying for a visa: If you are planning to visit, work, or study in Costa Rica, you may need to apply for a visa. An immigration attorney can help you determine which type of visa is best for your situation, help you gather the required documentation, and guide you through the application process.
  2. Plan permanent residence: Ipermanentlyo live in Costa Rica permanently, you will need permanent residence. Permanently can help you understand the requirements for obtaining permanent residency and assist you with applying.
  3. Renewing your visa or residence permit: If your visa or residence permit expires, you will need to renew it to continue living in Costa Rica. An immigration attorney can help you understand the renewal process and ensure you have all the necessary documentation.
  4. Applying for citizenship: If you are eligible and wish to become a citizen of Costa Rica, an immigration attorney can help you understand the requirements and assist you with the application process.
  5. Resolving immigration problems: If you have problems with your immigration status in Costa Rica, such as being denied a visa or facing deportation, an immigration attorney can help you understand your rights and options and represent you in the legal proceedings.
  6. Retirement plan: if you plan to retire in Costa Rica, hiring a good attorney must be your first step.

The Importance of hiring a good Corporate Lawyer.

Hiring a good corporate lawyer in Costa Rica is essential for businesses of all sizes and types. A corporate lawyer can provide valuable legal guidance, explaining to you the business law and representation for a wide range of business-related issues, including:

  1. Formation of the business: If you are starting a new business in Costa Rica, a corporate lawyer can help you choose the proper legal structure for your business, such as the type of corporation, partnership, and assist you with the formation process.
  2. Compliance with laws and regulations: A lawyer who knows corporate law can help ensure that your business complies with all relevant laws and regulations in Costa Rica, including tax laws, labor laws, and environmental regulations.
  3. Contract review and negotiation: You can review and negotiate contracts for your business, including agreements with vendors and customers.
  4. Risk management: A corporate lawyer can help identify and manage legal risks that may affect your business, such as liability risks or intellectual property issues.
  5. Investment: Also, if you are investing, you need to double-check who you are dealing with; a corporate attorney can help you to decide if it is a good or bad investment.
  6. Trademark: It is essential to register your brand or logo before starting to operate.

Overall, getting the correct legal service, and getting the right legal guide to Costa Rica, can be the difference between having a successful start in a foreign country like Costa Rica.

Embassies Attorneys list

Even though Spanish is the official language, you can find lawyers who speak English, so at least two embassies enlisted a list of law firms and attorneys who speak English that can provide legal consultation for your local or international legal issues.

Some Important Aspects About the Christmas Bonus

Next December, many Costa Rican workers will receive their aguinaldo or “thirteenth month.”

The Christmas bonus is the additional payment received by every salaried worker for having worked for the same employer for more than one calendar month. Their payment is mandatory by law and is applicable to salaried workers in the public and private sectors if they work part-time, full-time, or hourly, of whatever kind they are and whatever the way in which they perform their work.

The maximum date for the payment of the Christmas bonus is the first twenty days of December of each year. If the employer does not comply with the above, he may incur an infraction of undue withholding of salary, which is a serious offense and will be credited with the fine established by law.

For the calculation of the bonus, all ordinary and extraordinary salaries, salary in kind, overtime, commissions, and any other incentive that the worker has accrued, from the period between the first of December of a year to the thirtieth of November of the following year, must be added, the resulting amount is divided by twelve and this result is the amount that must be paid for the bonus.

If the worker does not work the full year, in the same way, the calculation of the Christmas bonus is obtained, d the average of the salaries and other amounts indicated, divided by twelve, the result will be the amount of bonus that corresponds to the salaried worker.

The period during which the worker is incapacitated due to illness, given the suspension of the employment contract, cannot be considered for the purposes of calculating the Christmas bonus.

In the case of women who enjoy disability due to maternity leave, the calculation of the Christmas bonus is made on one hundred percent of their salary and is the only case of a disability that is considered for the purposes of calculating the Christmas bonus.

However, if during her pregnancy, the woman becomes incapacitated due to illness, these periods are not considered for the calculation of the Christmas bonus. The Christmas bonus may not be the subject of compensation, sale, or assignment, nor may it be seized, except for alimony.

To conclude, it is important to know that the Christmas bonus should not be reduced for social charges, taxes, or income tax.