Government of Costa Rica: Freedom, Democracy & Stability

Government of Costa Rica: Freedom, Democracy & Stability Explained

By AG Legal · Updated Nov 2025

The Government of Costa Rica is frequently cited as a global example of democracy, peace and freedom. If you are considering a Costa Rica relocation, investing, retiring, studying political systems, or simply trying to understand how Costa Rica is governed, this guide walks you through the country’s political structure, institutions, elections and culture of freedom.

Unlike many countries in the region, Costa Rica has no military, enjoys strong checks and balances, and regularly ranks high in freedom, safety and quality-of-life indexes. This combination makes Costa Rica one of the best places to move for people from the USA and Europe who value stability, democracy and legal security.

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1. Costa Rica: A Democratic Republic with No Army

Costa Rica is a constitutional democratic republic in Central America, internationally famous for abolishing its army in 1948. This decision radically shaped the political system of Costa Rica: instead of allocating large budgets to defense, the country invests heavily in education, healthcare, social programs and environmental protection.

For many observers comparing Latin American governments, the Government of Costa Rica stands out as a rare example of long-term democratic stability, peaceful alternation of power and institutional continuity. This is one of the key reasons why Costa Rica ranks highly in global freedom and peace indexes.

If you are evaluating where to move abroad, this context is essential: Costa Rica is not only a tropical destination; it is a mature democracy with strong institutions.

2. Political Landscape & Culture of Freedom

The political landscape in Costa Rica is marked by a high level of civil liberties. You will not find military dictatorships, totalitarianism or permanent states of emergency. Instead, the country is governed through:

• Regular, competitive free elections
• Constitutionally protected freedom of expression
• Independent media and active civil society
• Strong attention to human rights and environmental rights

Peaceful demonstrations, rallies and protests are common and occur without systematic government interference. This is part of what makes Costa Rica particularly attractive to expats, digital nomads and foreign investors who value political stability, predictability and transparency.

In practice, this means that if you are planning to move to Costa Rica, open a business, apply for residency or retire in Costa Rica, you will operate under a stable, rules-based legal system, not under arbitrary executive power.

3. How Elections Work in Costa Rica

The Costa Rica election system is considered one of the most robust in the region. Every four years, on the first Sunday of February, Costa Ricans head to the polls to vote for:

• The President of the Republic
• 57 deputies to the unicameral Legislative Assembly
• Two Vice Presidents (elected together with the President)

Voting centers are usually located in schools, which become accessible public spaces for families, volunteers and observers. For many visitors, Election Day feels like a national civic celebration of democracy.

The President and Vice Presidents are elected by a majority of valid votes. If no ticket reaches 40% of the vote in the first round, a second round is held in April between the two leading formulas. Legislative Assembly deputies are elected for a four-year term under proportional representation by province.

For foreign nationals analyzing Costa Rica for relocation or investment, this predictable and transparent electoral process is a key component of the country’s political stability and low-risk profile.

4. Checks and Balances & Key Institutions

The Government of Costa Rica operates within a strong framework of checks and balances designed to avoid the concentration of power. Several independent institutions play a central role:

• Supreme Electoral Tribunal (Tribunal Supremo de Elecciones, TSE): Manages voter registration, supervises elections and guarantees transparency in the electoral process.
• Constitutional Chamber (Sala Constitucional or Sala IV): Reviews laws and government actions to ensure they comply with the Constitution and protects fundamental rights.
• Ombudsman’s Office (Defensoría de los Habitantes): Oversees public entities and defends the rights of inhabitants against abuses or negligence.

Political parties and campaigns are subject to the oversight and rules of the Supreme Electoral Tribunal, reinforcing trust in the system. For foreigners, this translates into a greater sense of legal certainty and institutional predictability.

5. Political Parties & Recent Presidents of Costa Rica

Political parties are the engine of Costa Rican democracy. Over the last decades, different parties have held power, reflecting a healthy alternation of government. Here is a list of the last six presidents of Costa Rica and their political parties:

This rotation between parties shows that power is not monopolized by a single group, supporting the perception of Costa Rica as a reliable democracy for long-term planning. For investors and expats, this history is a strong signal of political continuity without authoritarian tendencies.

6. Branches of Government: How Costa Rica Is Organized

The Government of Costa Rica is divided into three independent branches:

• Executive Branch: Led by the President, two Vice Presidents and the Cabinet. It manages public policy, foreign affairs, the national budget and day-to-day administration.
• Legislative Branch: A unicameral Legislative Assembly with 57 deputies. It drafts, debates and approves laws and public policies.
• Judicial Branch: An independent court system headed by the Supreme Court. It interprets and applies the law, resolves disputes and protects rights.

Many public institutions, such as autonomous agencies and regulatory bodies, enjoy operational independence. While this can add complexity to administrative procedures, it also protects institutions from centralized political interference.

If you are planning to start a business, buy property or apply for residency in Costa Rica, understanding this structure is crucial. Working with legal counsel who knows how to navigate these entities can save you time, money and unnecessary stress.

7. Costa Rica’s Global Impact: Freedom, Peace & Sustainability

Costa Rica is often highlighted in international reports for:

• Freedom of speech and press
• Independent judiciary and strong rule of law
• Environmental leadership, with high percentages of protected natural areas
• Social Guarantees like universal healthcare and a strong social security system

Two historic pillars of Costa Rica’s social model are:

• Costa Rican Social Security Fund (CCSS): Provides public healthcare and pensions.
• Labor Code: Protects workers’ rights, minimum labor standards and union freedoms.

This combination of democracy, social protection and environmental policy explains why Costa Rica is so frequently recommended in rankings of the best countries to live or retire, especially for citizens from the USA, Canada and Europe seeking a balance of freedom, safety and quality of life.

8. Is Costa Rica a Good Country to Live, Invest and Retire?

For many foreigners, the question is not only how the Government of Costa Rica works, but whether Costa Rica is a good country to move to. From a legal and institutional perspective, the answer is often yes, especially if you value:

• Stable democracy with no army
• Legal protections for property and investments
• Rule of law and access to courts
• Human rights and environmental protection as constitutional principles
• Strong ties with the United States and Europe

Every year, many American and European citizens choose Costa Rica for:

• Retirement in Costa Rica under specific residency categories
• Digital nomad visas and remote work
• Real estate and tourism investments
• Starting companies or regional headquarters

However, each project has its own legal, tax and regulatory implications. Working with a specialized legal team is essential to align your goals with the Costa Rica legal framework.

9. Key Takeaways About the Government of Costa Rica

• The Government of Costa Rica is a constitutional democratic republic with no army.
• It has a stable, transparent electoral system with regular alternation of power.
• Strong checks and balances and independent institutions protect democracy and rights.
• Costa Rica is globally recognized for its freedom, peace and environmental leadership.
• The country offers a combination of political stability, legal security and quality of life attractive for expats and investors.
• Understanding how the government works is crucial before you move, invest or retire in Costa Rica.

FAQ: Government of Costa Rica

Is Costa Rica a democracy?

Yes. Costa Rica is a constitutional democratic republic with regular free elections, independent institutions and strong civil liberties. It is often considered one of the most solid democracies in Latin America.

Does Costa Rica have an army?

No. Costa Rica abolished its army in 1948. Since then, the country has redirected resources to education, healthcare and social development, relying on diplomacy and international law for its security strategy.

Is Costa Rica politically stable?

Costa Rica is widely regarded as politically stable. It has had no military coups in decades, maintains strong institutions and offers a predictable environment for expats, investors and retirees.

Is Costa Rica safe for expats and retirees?

While no country is free from crime, Costa Rica is generally considered safer than many other Latin American countries. Its rule of law, respect for rights and political stability are major reasons why many foreigners choose to retire or relocate to Costa Rica.

How does Costa Rica’s government impact foreign investors?

The Government of Costa Rica provides a framework of legal protections for property, contracts and investments. Clear regulations, a functioning court system and international agreements make Costa Rica a popular choice for foreign direct investment.

Can foreigners participate in Costa Rican politics?

Foreigners residing in Costa Rica do not have the right to vote in national elections, but they benefit from the same civil rights, judicial protections and access to services granted to Costa Ricans, subject to immigration status and local regulations.