Tag: costa-rica

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.

 

 

 

6 New Reasons to be a Resident in Costa Rica

Dec 25, 2022 | Financial Law, Inmigration Law, Taxes

Costa Rica is a small Central American country known for its beautiful beaches, biodiversity, and friendly locals. It is also a popular destination for tourists and expats alike, thanks to its low cost of living and high quality of life. With the approval of Law 9996, new incentives were created, which grant exceptional Costa Rica advantages never seen before. This article gives you an idea of how to get a Costa Rica residency and provides “6 new reasons to be a resident in Costa Rica“.

As general aspects first, the cost of living is much lower compared to many other countries, especially in terms of housing, food, and transportation. This means that you’ll be able to stretch your budget further and enjoy a more affordable lifestyle. Second, it has a strong healthcare system with private and public options. The country also has one of the highest living standards, clean water, reliable electricity, and a robust infrastructure. Third, it is known for its beautiful natural landscapes and eco-tourism opportunities. There is always something new to explore and appreciate, from the stunning beaches to the lush rainforests. Finally, becoming a resident allows you to immerse yourself in the culture and way of life fully. The locals are friendly and welcoming, and many ex-pat communities can help you transition.

Two new laws were recently approved to promote incentives to obtain your residency in Costa Rica, modify the pre-existing immigration law, and get a Costa Rica residency under particular conditions. Because of the interest of many people to come to live in Costa Rica, 6 new tax incentives and reduction of requirements were created for 3 categories of residents and thus promote foreign investment.

It is good to clarify that apart from this new Law and the advantages that we will comment on, a new law called the Law to Attract Remote Workers and Providers of International Services was also enacted, which promotes the entry of digital nomads into Costa Rica, that is, people who work remotely for companies that are located outside the country.

The tax advantages of Law 9996, which was created to ease the requirements to become Costa Rica, was recently approved by the Legislative Assembly and signed by the President of the Republic on July 14, 2021, giving a series of tax advantages for 10 years for those who want to be residents. In this beautiful country. This new Law, called the Law for the Attraction of Investors, Rentiers, and Pensioners, implements changes in 3 immigration categories: 1) Investor Resident, 2) Resident Rentier or Rentista 3) Resident Retired or Pensionado.

The advantages of new law 9996 are:

  1. For the Resident Investor category, the investment in the country is reduced to US $150,000 US dollars
  2. Exoneration of all import taxes one time on household items.
  3. Exemption of all import taxes for a single time of two vehicles, land, sea, or air. The residents in these categories can import vehicles of any brand, yachts, boats, helicopters, airplanes, or any other means of transport, totally exempt from taxes.
  4. Exemption from income tax on revenues in any of these migratory categories.
  5. Exoneration of 20% of the property transfer tax you acquire while the Law is in force and under any of the above immigration categories.
  6. Exemption from import taxes for instruments or materials for professional or scientific practice carried out by the person with the migratory category of investor, retired resident, or rentier resident.

On the other hand, it is good to clarify that these new benefits also extend to people who are dependents of the person applying for residency. Another important aspect is that the person who is residents a and wants to upgrade to an investor, rentier, or pensioner can do so without any problem and apply for the benefits of this Law.

To apply for the benefits of this new Law or get this special status for foreigners, you must apply within the first 5 years of the Law. The benefits of this unique opportunity will be up to 10 years from the moment the tax benefits are granted.

If you want to know the Law in detail, click on this link so that you can read it comprehensively.

Residency Requirements.

For any category, the Costa Rica residency requirements are:

  1. Passport-size photograph.
  2. Birth Certificate.
  3. Criminal History or Lack thereof.
  4. Fingerprints obtained at the police department in Costa Rica.
  5. Register with the Embassy or Consular department of your country in Costa Rica.
  6. Photocopy of your passport that shows the last entry.
  7. Payment of government fees.
  8. If you and your couple are applying for residency, you must provide the marriage certificate and proof of income.
  9. If you are applying for the Costa Rica residency by investment, you must provide proof of your investment of USD$150,000.
  10. If you are applying as a Rentista or Rentier on a fixed income, you will need to prove your monthly revenue of USD$2,500 per month or make a deposit of USD$60,000 in a Costa Rican Bank that will cover two years of revenue. This new category of rentista has recently been improved by the new Law 9996.
  11. If you are applying as a retired or pensionado resident, you must prove an income of USD$1,000 per month.
  12. To apply for any Costa Rican residency, all the documents shall be apostilled or duly authenticated by your country’s consulate.

All applications should take place once the foreigner becomes legal in the country; in other words, that visa has not expired.

Temporary Residency and Permanent Residency

Several types of residency status for foreigners are available in Costa Rica, including temporary and permanent residency. Temporary residency allows individuals to live in the country for a specific period, while permanent residence will enable individuals to live in Costa Rica indefinitely.

Visa Requisites

  1. Nationals from the United States, UK, or Canada citizens, among many others countries, do not require an entry visa to Costa Rica. However, you must have a valid passport and a return ticket to exit Costa Rica within 90 days. The passport must be valid for one day before you enter Costa Rica.
  2. To verify all entry requirements according to your nationality, please click on this link.
  3. If your nationality is not enlisted and you cannot enter without a visa, you will need to hire immigration lawyers to help you.
  4. In some cases, the visa must be applied before the Costa Rican consulate of the country where you live.

The Pura Vida Life

Are you considering a move to a tropical paradise? Look no further than Costa Rica, a small country in Central America known for its lush forests, stunning beaches, and laid-back way of life. Here, you’ll find a culture centered around the phrase “Pura Vida,” which means “pure life” in Spanish and expresses appreciation for the simple things in life.

But the Pura Vida lifestyle isn’t just about the great outdoors. Locals or Ticos are known for their laid-back attitude and appreciation for the simple things in life. Here, you’ll find a strong sense of community and a focus on family and friends. This country is also safe and stable, with a strong democracy and a low crime rate.

Becoming a resident is an excellent opportunity to enjoy a high quality of life at an affordable price; you’ll find a range of options for housing, from apartments in the city to sprawling mansions on the beach. As was said before, the cost of living is relatively low compared to other countries in the region, and the country’s healthcare system is top-notch. Living in paradise means embracing the Pura Vida way of life. It’s about enjoying the simple things in life, spending time with loved ones, and immersing yourself in the beauty of nature. Costa Rica is the perfect place to call home with its stunning natural beauty, warm climate, and laid-back culture.

If you’re considering moving, don’t hesitate to contact AG LEGAL, as reputable immigration lawyers compound many other specialties.

At AG LEGAL, we are more than eager for you to ask us for any details you want.

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

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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Medical Visa Costa Rica – Permit to Stay for Treatment

Oct 13, 2022 | Inmigration Law

Residency & Medical Immigration

Medical Visa Costa Rica – Stay Permit for Treatment

Need to stay in Costa Rica for medical treatment? The medical visa (Staying Permit for Medical Treatment) allows foreign patients to remain legally while undergoing care. AG Legal can help you navigate the requirements—no surprises, just clarity. Contact AG Legal for Assistance

What Is the Medical Visa?

The medical visa (officially a Staying Permit for Medical Treatment) is a special category authorizing a foreigner to remain in Costa Rica for the duration of treatment. It’s granted when a local medical institution certifies care is underway and necessary.

Requirements & Eligibility

  • Certification from a Costa Rican medical provider confirming ongoing treatment and projected duration.
  • Proof of financial solvency to cover treatment and living costs.
  • If the stay exceeds six months: birth certificate and a clean criminal background check.
  • Valid passport and possibly medical insurance for international patients.

Duration & Renewal

The visa’s duration typically aligns with the treatment timeline as stated by the medical institution. Extensions may be possible with updated medical documentation. If the stay surpasses six months, additional paperwork (birth certificate, police check) is required.

Application Process Overview

  1. Obtain medical certification.
  2. Prepare financial and identity documents.
  3. Submit application to Dirección General de Migración y Extranjería.
  4. Await approval. AG Legal can streamline the process.

Frequently Asked Questions

Can I apply before entering Costa Rica?No—most applicants must be inside Costa Rica to apply for this permit.
Do I need health insurance for the permit?Not strictly required, but strongly recommended—especially for costly treatments.
What happens if my treatment extends unexpectedly?You can request an extension with updated medical certification. We help manage such renewals.

How AG Legal Can Help

AG Legal supports the entire process—from securing the medical certification to filing with immigration and managing renewals. Let us ease your medical stay in Costa Rica. info@aglegal.com

Reinstaling of dissolved companies

Aug 1, 2022 | Commercial Law, Taxes

🧾 Reinstating Dissolved Corporations in Costa Rica (Law 10255): Complete Legal Guide

On May 31, 2022, Costa Rica enacted Law No. 10255, published in the Official Gazette (La Gaceta No. 100), introducing a legal process for the reinstatement of dissolved corporations. The purpose is to reactivate commercial entities and stimulate the national economy by allowing previously dissolved companies to recover their legal status.

✅ Who Can Reapply for Reinstatement?

According to Law 10255, corporations that were dissolved under the following conditions are eligible to apply for reinstatement:

  • Dissolution due to non-payment of the Legal Entities Tax
  • Expiration of the company’s legal term as per Law No. 9428
  • Expiration defined in the company’s articles of incorporation (Article 201, Commercial Code)

The request must be submitted within three years from the official date of dissolution through the National Registry’s Department of Legal Entities.

📋 What Are the Requirements?

  • All outstanding taxes, penalties, interests, and legal obligations must be paid in full.
  • The request must be submitted by the corporation’s legal representative.
  • Corporations must also comply with Law No. 9416 (Anti-Tax Fraud Law), by submitting the Ultimate Beneficial Ownership Declaration within 2 months of reinstatement.

⚠️ How Does This Differ from the 2017 Reinstatement Law?

Unlike the 2017 reinstatement window, which required all tax arrears to be settled by December 15, 2017, Law 10255 does not impose a specific deadline for repayment. This makes reinstatement more flexible and accessible to a broader range of dissolved companies in Costa Rica.

Need Legal Assistance to Reinstate Your Corporation in Costa Rica?

Our legal experts at AG Legal can guide you through the reinstatement process, handle filings, settle outstanding taxes, and restore your legal status in full compliance with Costa Rican law.

Contact AG Legal Today

Law for the Attraction of Investors, Rentiers, and Retirees

Aug 8, 2021 | Inmigration Law, Taxes

ARTICLE 1- Object of the law

The purpose of this law is to create the regulatory framework to encourage the attraction of investors, rentiers, and retirees, thus protected by Law 8764, General Law of Migration and Foreigners, of August 19, 2009, to contribute to the Costa Rican economic reactivation in a post-Covid-19 pandemic period.

ARTICLE 2- Scope

This law will apply to all those people who are authorized to enter our country under the immigration categories of investors, retired residents, or rentier residents.

ARTICLE 3- Declaration of public interest

This law is of public interest for the development of the attraction of investors, rentiers, and retierres to the national territory. For its fulfillment, the institutions of the Public Administration may include economic contributions to support the fulfillment of its purposes through the ordinary and extraordinary budgets of the Republic.

ARTICLE 4- Rectory

The governing body of what is protected in this law in the matter of migration will be the General Directorate of Migration and Foreigners, a body attached to the Ministry of the Interior and Police. Concerning tax matters will be the Ministry of Finance.

ARTICLE 5- Incentives

The people covered by this law will enjoy the following incentives:

  1. a) Duty-free and all import taxes present only once, for the importation of household items. In the applications, they will be able to protect their dependents for immigration purposes. Household goods shall be understood as all new or used items of a reasonable nature and quantity and proportionally sufficient for the needs of the beneficiary of this law and the members of their immediate family nucleus, including, among others, home furnishings and electrical appliances. , home decor items, kitchen and bathroom utensils, bedding.

Suppose the beneficiary person transfers these assets within the validity period of the benefits granted by the provisions of the second paragraph of Article 12 of this law. In that case, they must pay the taxes from which they were exempted.

In highly qualified situations, where there is destruction or loss due to theft of household items, the beneficiary may acquire other assets for their replacement, also exempt from taxes. The regulation will develop the accreditation mechanisms of the circumstances in which these qualified exceptions proceed.

  1. b) Beneficiaries may import up to two land, air, and/or sea transportation vehicles for personal or family use, free of all import, tariff, and value-added taxes. In case of loss of the vehicle due to theft, destruction by fire, flood, collision, or accident occurring during the term of validity of the benefits granted following the provisions of the second paragraph of article 12 of this law, the owner may import another vehicle free of the indicated taxes.

The beneficiary of this law, who has imported a vehicle under the conditions indicated in the previous paragraph, may sell or transfer it to third parties, in which case the provisions of article 10 of Law 7088, Tax Adjustment and Resolution, will be applied. 18th CA Tariff and Customs Council, of November 30, 1987.

  1. c) The amounts declared as income to qualify for the benefits of this law will be exempt from income tax.

However, the income obtained in the national territory, resulting from the investments made in the country, will be taxed by income tax, according to what is provided in Law 7092, Income Tax Law, of April 21 1988.

  1. d) Twenty percent (20%) of the total transfer tax will be exonerated on real estate that they acquire within the term of this law, provided that the beneficiary is the registered owner of the asset.

If the beneficiary person transfers these assets within the term of this law, they must pay the taxes from which they were exempted.

  1. e) Exemption from import taxes for instruments or materials for professional or scientific practice, carried out by the person with the migratory category of investor, retired resident, or rentier resident. The person must demonstrate to the Ministry of Finance that what is imported corresponds to his economic activity and has criteria of proportionality and reasonableness.

ARTICLE 6- Tax residence

Foreign persons classified as investors, retired residents, or rentier residents, according to this law and who invest in Costa Rica, will not be automatically considered tax residents under Law 7092, Income Tax Law, of April 21, 1988, and its regulations, being subject to due diligence processes for the exchange of information with other jurisdictions under an international agreement, following article 106 quarter of the Code of Tax Standards and Procedures. The status of tax resident will be obtained only when the requirements of the final paragraph of Article 2 of Article 7092, Income Tax Law, of April 21, 1988, and Article 5 of the Income Tax Regulations are met.

ARTICLE 7- On the resignation or cancellation of the condition of investor, rentier resident, or retired resident

If the beneficiary person renounces his condition of “investor,” “pensioner resident,” or “rentier resident,” or if the General Directorate of Migration and Foreigners cancels his immigration status for having incurred In any of the cases contemplated in article 129 of Law 8764, General Law of Migration and Foreigners, of August 19, 2009, within the term of this law, you must pay the taxes from which it was exempted.

ARTICLE 8 Investors

For the category of investors, for the term established by this law, a new investment range is established, with a capital of not less than one hundred and fifty thousand US dollars (US $ 150,000.00), according to the official sale exchange rate. determined by the Central Bank of Costa Rica, whether in real estate, registrable assets, shares, securities, and productive projects or projects of national interest. In those cases where special laws regulate the investment, it will be analyzed individually.

In addition, beneficiary investors for this law may be considered those who invest in venture capital funds or sustainable tourism infrastructure projects.

ARTICLE 9- Processing

The Ministry of the Interior and Police, through the General Directorate of Migration and Immigration, in attention to the criteria for simplifying procedures, will have a specialized service window for the categories provided in the second article of this law, regulated in Law 8220, Protection of Citizens from Excess Requirements and Administrative Procedures, of March 4, 2002.

In addition to the requests dealt with directly at the window in question, the Ministry of Appointment may open a window under the same conditions of service at its different locations or dependencies.

ARTICLE 10- Falsification of documents

Whoever alters or falsifies documents to obtain any of the benefits provided in this law will be sanctioned with a fine equivalent to ten percent (10%) of the taxes that were exonerated. Additionally, you must proceed with the immediate payment of the full amount of the taxes that were exonerated. The foregoing is without prejudice to other administrative and criminal penalties that may apply.

The respective sanctioning procedure will be carried out by the General Directorate of Migration and Immigration, by the provisions of article 189 of Law 8764, General Law of Immigration and Immigration, of August 19, 2009. For its part, according to the provisions of this law, the Ministry of Finance will supervise and sanction following the corresponding legal framework.

ARTICLE 11- Regulations

The Executive Power will regulate this law within the sixty days following the date of its entry into force.

ARTICLE 12- Validity of the law

Investors, rentiers, or pensioners who opt for the benefits granted in Article 5 of this law may do so only during the first five years from its entry into force.

Investors, rentiers, or beneficiary pensioners who opted for said benefits during the first five years of the law’s validity will keep them for ten years from the date they were granted.

Governs from its publication.

Legal and Tax Implications for Inactive Companies In Costa Rica

Jan 19, 2021 | Commercial Law, Taxes

In past years it was very common to use inactive companies as a legal structure to protect assets. The foregoing, because it was a corporate figure that was exempt from certain tax requirements, unlike those that develop a commercial activity.

Because of the entry into force of the Law on Strengthening Public Finances (Ley de Fortalecimiento de las Finanzas Públicas) in 2018, the benefits of using an inactive company as a corporate vehicle for the protection of assets, undergoes a significant shift. The above, because it converts this type of companies into taxpayers and it forces them to comply with 5 tax requirements, which are the detailed as follows:

FILING OF D-140 FORM: Once an inactive company is dully incorporated before the Costa Rican National Registry, it must file before the Tax Authority an update of the information regarding its legal representative or representatives and its tax address. Additionally, the company must be registered under the economic activity of “Legal persons incorporated in the country that does not carry out economic activity of a Costa Rican source”, which is governed by code 960113. It is important to consider that in the event of non-compliance with this first post-incorporation requirement, the company is exposed to a sanction. Lastly, this requirement must be complied within the period of 10 business days from the incorporation of the company.

 

CORPORATE TAX: This is a tax must be paid annually, during the month of January of each year. The amount to be paid varies from year to year and can be paid from any digital platform of the banks registered in the national financial system. The amount to be paid varies depending on whether it is an inactive company or an active company.

EDUCATION AND CULTURE STAMP: This tax It is included with the legal expenses at the incorporation of the company. Subsequently, this tax must be paid annually between the months of February and March of each year. The net capital reported in the Income Tax return of the immediate prior fiscal year, is used as the basis for calculating such tax.

ULTIMATE BENEFICIARY OWNERSHIP DECLARATION (UBO): This declaration is filed annually during the month of April before the Central Bank of Costa Rica. The purpose of this declaration is to indicate who is the final beneficiary (physical person) who is owns company. The omission this requirement carries out several sanctions to the company, such as a pecuniary fine, the non-issuance of good standing certifications and the non-registration at the Costa Rican National Registry of documents in relation to the company.

INCOME TAX RETURN (FORM D-101): One of the most important modifications that are introduced with the aforementioned law, is the filing of the Income Tax Return, in which the capital stock, assets and liabilities of the inactive company must be stated. This declaration will be taken as the basis for the calculation of the Corporate Tax, Education and Culture Stamp and other future tax liabilities. The failure to submit this declaration form entails financial penalties and in the face of an audit by the Tax Authority, the company would be exposed to an additional penalty for the increase of the corporate assets without justification. This requirement must be submitted annually and expires on March 15.

In conclusion, with the introduction of these new tax requirements that all inactive companies must fulfill, this promotes to maintain the corporate information updated. The above, because these companies stopped being simple holders of assets and from now on, they are subjected to a meticulous tax inspection. Therefore, the only way to avoid this type of sanctions is to keep everything in order and in compliance as if the said company, would be developing a commercial activity like any company called “active”.

TAX OBLIGATIONS

INACTIVE COMPANIES

               DUE DATE

FILING OF D-140 FORM

10 business days from the incorporation of the company before the CR National Registry,

CORPORATE TAX

January 31st

EDUCATION AND CULTURE STAMP

From February to March
UBO

April 30th

INCOME TAX RETURN (FORM D-101)

March 15th

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How to Appeal a Property Tax Appraisal in Costa Rica

May 9, 2020 | General

How to Appeal a Property Tax Appraisal in Costa Rica

If your property appraisal in Costa Rica seems unfair or inaccurate, you have the right to challenge it. This guide explains the legal framework, the appeal process, and how AG Legal can help you protect your property rights and avoid excessive tax burdens.

Property Appraisals: The Legal Basis

The appraisal of a property for tax purposes must be conducted according to the Base Values per Constructive Typology Manual, established by the Technical Standardization Department of the National Treasury.

Each property assessment must include a detailed description of the construction type, installations, and any improvements within the lot.

Understanding these requirements allows taxpayers to verify whether their appraisal complies with established technical and legal norms — and to appeal if it does not.

When Can You Appeal an Appraisal?

  • Non-compliance with the Manual: If the appraisal ignores or violates the procedures, it can be challenged.

  • Errors in Construction Data: Incorrect details about square meters, materials, or improvements may lead to an unfair tax burden.

  • Disproportionate Property Tax: When the assessed value is higher than market reality, owners can request annulment or correction.

The Property Tax Appeal Process in Costa Rica

The law provides a clear escalation path for taxpayers who wish to challenge an appraisal:

  1. Motion for Revocation: File this with the Property Department of the relevant Municipality.

  2. Appeal before the Municipality Council: If the revocation is denied, you may escalate to the Council.

  3. Administrative Tax Court: If the appeal is rejected, you have 15 business days to submit a final appeal to the Administrative Tax Court.

The Administrative Tax Court makes the ultimate decision on whether a new appraisal will be ordered.

Checklist: Before You Appeal

  • Copy of the appraisal report, to compare against technical requirements.

  • Evidence of errors, such as photos, plans, or documents showing inaccuracies.

  • Legal review, to ensure the appeal is filed within deadlines and with proper arguments.

How AG Legal Can Help

At AG Legal, our tax and property law experts assist property owners in:

  • Reviewing appraisals for technical and legal compliance.

  • Filing motions and appeals on time.

  • Representing clients before Municipalities and the Administrative Tax Court.

  • Reducing unfair property tax burdens through effective legal defense.

Contact us for legal assistance or learn more about our tax law services.

Final Thoughts

Property tax in Costa Rica is a legal obligation, but it must be fair and technically accurate. If you believe your appraisal is flawed, you have the right to challenge it. Acting promptly and with expert legal support is the best way to protect your investment.

Double Taxation

May 9, 2020 | Taxes

Today, commercial activity has become increasingly globalized, with many companies expanding their operations across international borders. When a company operates in multiple countries, a dilemma suddenly arises: where should its income be reported? Where should taxes be paid?

Every country has its own tax regulations, and, as per its sovereignty, a company may be required to pay taxes in the countries where it conducts its business.

It was in search of tax justice that the principle of double taxation was conceived and developed. This principle prohibits governments from taxing the same individual for the same concept or activity.

This predicament has led nations to establish various measures to avoid double taxation. Internal legislation has been enacted to regulate this issue, but faced with the impossibility of completely solving the problem, countries have resorted to international treaties in order to reach a more integral solution.

Costa Rica has joined this initiative and currently has signed treaties with Spain, United States and with some Central American countries.

The existence of these agreements in order to avoid double taxation is essential to promote foreign investment, as they provide legal security to investors and reduce taxation to such investments, and ultimately avoid for investors, disadvantageous scenarios for competitiveness.

Currently, the potential admission of Costa Rica to the Organization for Economic Cooperation and Development (OECD), will further impulse this initiative, since one of the objectives of the entry of Costa Rica to this organization is to improve the business climate within the country and ensure the security of the investments made in national territory.

Can a Worker be Fired for Late Arrivals?

May 9, 2020 | Labor Law

Justified Dismissal for Employee Lateness in Costa Rica

Can Lateness Lead to Justified Dismissal?

In Costa Rica, under Article 81 of the Labor Code, repeated and unjustified lateness can be considered “gross misconduct” and may legally justify dismissal without severance or notice.
A single late arrival does not qualify, but multiple documented infractions, combined with prior written warnings, can meet the legal threshold for termination.

Key employer steps before dismissal:

  1. Document each late arrival in writing.
  2. Issue monthly notices summarizing lateness counts.
  3. Apply progressive discipline before termination.

Understanding Justified Dismissal for Lateness

1. Legal Basis

Article 81 of the Costa Rican Labor Code lists causes for dismissal without employer liability. While “lateness” is not specifically named, subparagraph (general clause) allows dismissal for
“gross misconduct to the obligations imposed by the employment contract.”

2. When Lateness Becomes Dismissible

Courts and the Ministry of Labor have held that repeated, unjustified lateness can be “gross misconduct” if:

  • It shows lack of responsibility and commitment.
  • It occurs despite prior written warnings.
  • It reaches a quantitatively significant threshold.

3. Official Guidance — Ministry of Labor & CCSS

Legal opinion DAJ-AE-219-2008 clarifies:
An employer may terminate without liability if the employee accumulates more than six late arrivals in three consecutive months,
provided the first two infractions were sanctioned and the worker was warned to correct the behavior.

4. Employer Step-by-Step

  1. Document lateness: record every incident with date and time.
  2. Issue written warnings: after each late arrival, deliver formal notification.
  3. Monthly summary: total infractions at month’s end and share with the employee.
  4. Progressive discipline: apply sanctions (per Internal Work Regulations) before dismissal.
  5. Dismissal decision: if thresholds are met and behavior persists, proceed per Article 81.

5. Case-by-Case Analysis

Each situation must be evaluated individually. Factors include the recurrence pattern, justification offered by the employee, internal policies, and prior disciplinary actions.

For employers and HR professionals: consulting with a Costa Rica labor lawyer before proceeding ensures compliance with procedural and substantive labor law requirements.