Accountancy in Costa Rica

>> Employment in Costa Rica

Social security/unemployment taxes

Employer’s Social Contribution
Invalidity, Old Age, Death (employer) 5.08%
SEM (emploer) 9.25%
Other Institutions
Asignaciones Familiares 5.00%
Banco Popular (employer´s share) 0.25%
IMAS 0.50%
INA 1.50%
Employee Protection Law
Banco Popular (employer´s share) 0.25%
Labor Capitalization Fun (Gradual, Transitory VIII-Employee Protection Law (LPT)) 3.00%
Complementary Pension Fund 1.50%

According to Labor Code, two weeks of paid vacations shall be granted for every 50 weeks of uninterrupted work.

Employment of foreign personnel

Foreigners do not have any impediment to work in Costa Rica, as long as they have the respective permit of the Immigration Authorities (Dirección General de Migración). Professionals should provisionally incorporate to the corresponding professional association.

Payroll taxes

Tax rates on salaries are the following (with each tax period, the chart is modified):

2018 Period Rate
Up to ¢ 799.000 Exempt
Over the excess of ¢ 799.000 up to ¢1.199.000 10%
More than ¢1.199.000 15%

The employee does not have to file the tax return; therefore, the employer has to the obligation to make monthly withholding of such tax, report them and pay them to the Tax Authorities.

Latest version updated 10th April 2019

Country Breakdown





Costa Rican colón


$ 57.06