Category: General

Marchamo in Costa Rica: Guide for Expats & Vehicle Owners

Jun 5, 2025 | General

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

Your company, investment or lifestyle in Costa Rica may hinge on vehicle compliance. The Marchamo tax is mandatory each year and applies to all registered vehicles.

In this guide you’ll understand what Marchamo includes, who must pay it, estimated costs, legal consequences of delay, and why it’s essential for expats and foreign investors.

🔎 What Is the Marchamo Tax?

  • SOA Insurance: Compulsory third‑party liability insurance.
  • Vehicle Property Tax: Based on fiscal value assigned by COSEVI.
  • Additional Charges: Unpaid fines, municipal fees, registration infractions.

👤 Who Must Pay Marchamo?

  • All residents & non‑residents with vehicles registered in Costa Rica.
  • Imported vehicles once officially registered under COSEVI or National Registry.
  • Cars, motorcycles, ATVs, scooters, trucks and all motorized transport.

📅 Payment Deadlines & How to Pay

The Marchamo payment window for 2025:

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

Late payments trigger automatic fines and interest starting January 1, 2026.

Payment methods include:

⚠️ Consequences of Late Payment

  • Daily interest applies to outstanding balance.
  • Possibility of vehicle impoundment.
  • Cannot renew vehicle permits or legal documents.

💵 Estimated Cost of Marchamo

Cost depends on:

  • The vehicle’s fiscal value
  • Model year and classification
  • Unsettled fines or violations

Typical costs: standard sedans around $300 USD, while imported luxury or utility vehicles may reach up to $8,000 USD.

🌍 Why This Matters for Expats & Investors

  • Ensures compliance with traffic and fiscal obligations.
  • Avoids legal complications, driving bans or impoundment.
  • Protects resale value and legal status of vehicles.
  • This is the annual cost of living in Costa Rica. You can learn more about the cost of living at the following link: Cost of Living in Costa Rica

📝 Frequently Asked Questions

How much is Marchamo for a U.S. expat?
It depends on the vehicle’s fiscal value—use the INS portal to estimate your fee.
Can I pay Marchamo from abroad?
Yes—international cards are accepted via INS Marchamo site.
Do I pay if I don’t use the car?
Yes—Marchamo applies to all registered vehicles regardless of usage.

Need Legal Help with Your Marchamo?

AG Legal offers expert guidance for vehicle tax compliance, penalties, and procedures. Don’t risk fines or delays—let us handle it for you.


Contact AG Legal Today

Lawyers in Costa Rica: Real Estate, Immigration & Corporate Specialists

May 28, 2025 | General

🇨🇷 Lawyers in Costa Rica: Real Estate, Immigration & Corporate Specialists

At AG Legal, we provide strategic legal solutions for foreign investors, expats, retirees, and entrepreneurs relocating or doing business in Costa Rica. Our attorneys combine deep local expertise with international standards, ensuring you receive reliable, personalized service every step of the way.

🔍 Why Hire a Lawyer in Costa Rica?

Whether you’re buying property, applying for residency, or starting a business, the Costa Rican legal system can be complex. A knowledgeable attorney helps you:

  • Avoid legal pitfalls and ensure compliance.
  • Protect your assets and investments.
  • Simplify immigration procedures.
  • Incorporate and operate your business legally.

💼 Our Legal Services

🧱 Real Estate Law

We conduct full due diligence, title verification, contract drafting, and registry processes to protect your real estate investment.

🛂 Immigration Law

Whether you’re applying as a pensionado, rentista, investor, or digital nomad, we streamline your residency application with precision.

🏢 Corporate Law

We guide entrepreneurs and corporations in business registration, shareholder structures, compliance, contracts, and ongoing legal support.

🔗 Useful Links for Foreigners in Costa Rica

📚 FAQs About Attorneys in Costa Rica

Do I need a lawyer to buy property in Costa Rica?

Yes. An attorney ensures clear title, prepares contracts, and handles due diligence to prevent fraud or ownership disputes.

Can AG Legal help me get residency?

Absolutely. We manage all immigration filings for retirees, digital nomads, investors, and families relocating to Costa Rica.

Is it hard to start a company as a foreigner?

Not with the right legal guidance. We help you incorporate quickly, meet all tax requirements, and protect your liability.

Ready to Invest, Relocate, or Launch a Business in Costa Rica?

AG Legal is your trusted partner for legal certainty in real estate, immigration, and corporate law.


📩 Contact Our Legal Team


Starting a Business in Costa Rica: Tips and Steps

Nov 5, 2024 | Commercial Law, General

Company Formation · Costa Rica

How to Start a Business in Costa Rica – Complete Legal Guide (2025)

Starting a business in Costa Rica is a smart move for entrepreneurs targeting the U.S.–LatAm corridor. With political stability, strong rule of law and FTA access, Costa Rica is a prime destination for company registration, business licenses and nearshore operations. AG Legal has guided hundreds of foreign founders through incorporation, tax, social security and banking—end‑to‑end. Schedule a Consultation

Why Choose Costa Rica for Your Business?

  • Strategic location: access to North & South America; ideal for U.S. investors and nearshoring.
  • Political & legal stability: reliable courts and pro‑business regulatory environment.
  • Sustainability leadership: great fit for eco‑tourism, renewable energy, agtech.
  • Talent & FTAs: bilingual workforce; trade access to U.S., EU and Asia.

Business Structures: S.A. vs SRL (LTDA)

Sociedad Anónima (S.A.)

  • Corporation with limited shareholder liability.
  • Flexible for boards, investors and complex share structures.
  • Good for larger or growth‑oriented operations.

Sociedad de Responsabilidad Limitada (SRL / LTDA)

  • Limited liability company; simpler governance.
  • Common for SMEs and new entrants.
  • Ownership via quotas; straightforward compliance.

Foreign Investors & Immigration

Foreigners may own 100% of a Costa Rican company. Residency isn’t required to own, but is required if you will work in the company. AG Legal supports:
  • Residency / work authorization pathways for founders and executives.
  • Corporate governance, registered address and compliance.
Can I run the business from the U.S. while I set up?
Yes. Many clients start remotely and apply for residency once operations begin. We structure representation so your company can function from day one.

Municipal Business License (“Patente”)

  1. Submit: incorporation docs, corporate tax ID, zoning/health permits if applicable.
  2. Sector permits: e.g., restaurants (health & safety), construction (engineering boards), tourism (ICT).

Open a Corporate Bank Account

You will typically need: company formation documents, corporate tax ID and valid identification. Through partners (e.g., Banco de Costa Rica), we coordinate KYC/AML to expedite onboarding.

Taxes & Social Security (CCSS)

Companies pay corporate income tax (tiered by revenue) and must contribute to the Costa Rican Social Security Fund (CCSS). Our sister firm AG BPO Services manages accounting, payroll and filings for full compliance.

Opportunities & Challenges

Opportunities: tech & shared services, eco‑tourism, renewable energy, specialty agriculture, medical devices. Challenges: permitting timelines, documentation standards and higher operating costs relative to neighbors—mitigated by stability, talent and legal certainty.

Frequently Asked Questions

How long does company registration in Costa Rica take?
Most incorporations can be structured in a few business days once documentation is complete. Sector permits and municipal licenses can add time depending on activity and location.
Do I need to be in Costa Rica to incorporate?
No. With proper powers of attorney and notarizations, we can complete most steps remotely and schedule in‑country tasks when convenient.
Which is better: S.A. or SRL?
SRL (LTDA) is simpler for SMEs; S.A. offers more flexibility for boards/investors. We recommend based on ownership, governance and financing plans.

Start Your Business in Costa Rica with AG Legal

Whether launching a startup or a U.S. subsidiary, our team handles company formation, tax, CCSS, licensing and banking. Speak with our corporate experts today. info@aglegal.com

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

Feb 4, 2024 | General, Inmigration Law

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

Jan 27, 2024 | General, Inmigration Law

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: What People Need to Know

Jan 27, 2024 | General, Inmigration Law

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

We have good news: Costa Rica 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 beach police will hardly notice you, but if you’re on the street with a beer and misbehave, expect 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 enjoy socializing over a drink but prioritize responsible consumption. There are party hotspots like La California in San José, Tamarindo in Guanacaste, and Jaco Beach—known for nightlife and surfing culture.

Local brews are a must-try! Sample Imperial, a crisp lager, or Pilsen, a refreshing pilsner. Indulge in Guaro Cacique, made from sugar cane—often mixed into cocktails that embody Costa Rica’s tropical spirit.

Tipping is not mandatory in Costa Rica, but a small gratuity for good service is appreciated. Hospitality is geared toward making tourists feel welcome—without pressure for tips like in other Latin American countries.

Driving Under the Influence of Alcohol in Costa Rica: Drinking Laws

You can drive at 18 in Costa Rica with a valid driver’s license from your home country. However, do not drive under the influence. If police conduct a breathalyzer and find a blood alcohol concentration above 0.75 g/L or an air alcohol level above 0.38 mg/L, it’s considered reckless driving, according to Costa Rican criminal law. Penalties include:

  • 🚔 Jail sentence of 1–3 years (temporary detainment likely)
  • 🚫 Disqualification from driving in Costa Rica for 2–4 years
  • 💸 Hefty fine: approximately $700

These same penalties apply if you are caught speeding over 150 km/h. Always respect speed limits and comply with traffic officers.

Essential Tips for Drinking in Costa Rica

  • 🆔 Always carry valid ID. A passport or government-issued ID is the best option.
  • 🚫 Respect the drinking age—bartenders rarely serve minors, and shops won’t sell to underage customers.
  • 💧 Drink responsibly. Stay hydrated, pace yourself, and enjoy the moment.
  • ❌ Avoid public drinking. Use designated areas to stay within the law.
  • 🌴 Embrace local culture: slow pace, warm people, and unique drinks. Engage with locals and other travelers respectfully.

So, Raise a Glass to Responsible Fun in Costa Rica! 🍻

Enjoy Costa Rica’s vibrant lifestyle while respecting the law. Whether you’re on the beach or exploring urban nightlife in San José, do it smartly and safely.

 

💬 If you need legal help as a tourist, AG Legal is the #1 law firm for legal assistance for foreigners in Costa Rica. From minor fines to serious legal situations, we’re here to guide you.

❓ Drinking Age in Costa Rica – FAQs

What is the legal drinking age in Costa Rica?

The legal drinking age is 18 years old. This applies to both purchase and consumption of alcohol anywhere in the country.

Do I need an ID to buy alcohol?

Yes. Always carry a valid ID such as a passport or government-issued ID. Most bars, clubs, and supermarkets will check your ID if you look under 30.

Can I drink alcohol in public places?

Technically, no. Drinking on the streets or beaches is prohibited, though enforcement varies. Stay safe by drinking in licensed venues.

What happens if I drink and drive?

If you’re found with a BAC over 0.75 g/L, you could face jail (1–3 years), license suspension, and fines up to $700.

Are there restrictions on alcohol sales?

Yes. In most stores, alcohol is not sold before 11:00 a.m..

Is alcohol served at all-inclusive resorts to minors?

No. Resorts follow national laws. Guests under 18 are not served alcohol even if accompanied by adults.

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

Dec 29, 2023 | General, Inmigration Law

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

Feb 18, 2023 | Commercial Law, General, Inmigration Law

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.

Digital Nomad Visa Costa Rica – Requirements & Application Guide

Dec 30, 2022 | General, Inmigration Law, Labor Law

Residency & Remote Work

Digital Nomad Visa Costa Rica – Requirements & How to Apply

The Costa Rica Digital Nomad Visa allows foreign remote workers and freelancers to live in the country while working for clients abroad. Here’s what you need to know about income requirements, documents, and the application process.

Apply with AG Legal

What Is the Digital Nomad Visa?

The Digital Nomad Visa is a special residency category allowing foreign nationals to stay in Costa Rica for up to one year (extendable) while working remotely for companies or clients located outside the country.

Eligibility & Requirements

  • Income proof: Minimum of USD $3,000 per month for individuals, or USD $4,000 for families.
  • Valid passport: With at least six months validity.
  • Health insurance: Coverage for the entire stay.
  • Application form: Filed online via Costa Rica’s immigration platform.
  • Clean criminal record: May be required depending on nationality.

How to Apply

  1. Gather required documents.
  2. Translate and apostille where necessary.
  3. Submit application online to the Dirección General de Migración y Extranjería.
  4. Pay government fees.
  5. Wait for approval and receive visa confirmation.

Benefits & Limitations

  • Legal stay for up to 1 year, renewable.
  • Exemption from income tax in Costa Rica for foreign earnings.
  • No right to work for local employers.

Frequently Asked Questions

Can I work for a Costa Rican company with this visa?

No, it’s only for remote work for foreign clients.

How long does approval take?

Typically 15–30 business days, depending on document readiness.

Get Expert Help

AG Legal assists with the entire digital nomad visa Costa Rica process, from document preparation to final approval.

info@aglegal.com

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

Dec 25, 2022 | Commercial Law, Criminal Law, General, Inmigration Law, Intelectual Property

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

Nov 27, 2022 | General

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.

DIMEX Renewal Important Information

Oct 13, 2022 | General, Inmigration Law

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It is important to remember that your DIMEX needs to be renewed. Those who have received their residency must renew their DIMEX (Identification Document for Foreigners). It must be renewed within 30 days after expiration, or there is a fine of $3 per month. It is important to understand that the residency can be canceled when the DIMEX is not renewed within the three months after its expiration.

If the resident was out of the country for more than a year, they must file a letter with DGME explaining the reason for the prolonged absence and provide an updated criminal background check from the country they have been living.

As a reminder, temporary residents that are outside of Costa Rica for more than two years, or permanent residents for more than four years, can have their residence canceled by DGME.

Our team is happy to assist with the renewal of your DIMEX. Contact us today at immigration@aglegal.com

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