How do you start a business in Costa Rica? Is it possible for a non-citizen to do so? These questions are commonly asked by those who would like to move to Costa Rica but need some additional income in order to make it work. Or, maybe you have the entrepreneurial spirit, and your idea of an enjoyable retirement is to watch your idea grow into a profitable enterprise. A motive for others is to give back to the community by starting a business that will provide quality jobs that support their neighbors.
Whatever your circumstances, you’ll be glad to know that it is possible to legally start your own business in Costa Rica. And you don’t have to be a permanent resident of Costa Rica to do so. Even those visiting as tourists can start a business. However, you need to be aware of the requirements that the government imposes. Costa Rica welcomes foreign investment but, like most countries, it is protective of its labor force. In other words, the government wants you to start a business or invest capital in an existing business, especially if it creates jobs for Ticos. On the other hand, it doesn’t want foreigners to fill jobs that Costa Ricans can perform. So while you are allowed to own and manage a business, you may not be able to perform the work yourself. Those are the underlying principles for many of the rules regarding foreigners and commerce.
The key to a successful startup is finding the right people. In Costa Rica. The first person you will need on your team is a knowledgeable lawyer. Your attorney will guide you through the process of legally registering your company. The most common business structure is the Sociedad Anónima, often referred to by its initials SA. It is popular because it protects the personal income and assets of its shareholders from liability. The other option is the Sociedad de Responsabilidad Limitada (SRL). It can be composed of just one member, so it’s even simpler than the SA which requires at least four persons to make up the board of directors (junta directiva). You may also need a permit, or license, depending on the nature of the business. Attorneys fees and registration is typically between $800 and $1200 depending on the Law firm.
After registering your business, you will need a competent accountant. Costa Rican tax laws and accounting practices are very different than in North America, so a local accountant is essential to ensure that you are in compliance. Costa Rican businesses are responsible for the following taxes: Social Security for employees (14.5% of salary), corporate income tax (10-30% depending on gross revenue), property tax (0.25% of the appraised value), and annual corporation fee (around $250). A qualified account will not only keep your books balanced but will also keep you on the right side of the law.
You might think your profits will be substantial in Costa Rica because wages are lower than you would pay employees in the US, but Costa Rican employees have a lot of rights and benefits that may cut into your bottom line. It is very important to look into that before hiring employees. Your lawyer and accountant will be excellent resources.
Another important step for your startup is to open a bank account here in Costa Rica. Banco de Costa Rica, a state-owned bank, allows non-residents to open an account using their passport as identification. The minimum initial deposit is ¢50,000 colones, $500 dollars or €100 euros. Another bank requirement is a minimum monthly income of $1000. The bank may require documentation–bank statements or certified accounting reports–to verify the amount and source of income. Once your bank account is opened and funded, you’ll be able to do most transactions online from wherever you are.
Many that have made the move have decided to become legal residents of Costa Rica. One of the ways to obtain residency is by means of an investment of $200,000 or more in a business or property. So starting your own business in Costa Rica can produce multiple benefits: income, supporting the economy of the community, and permanent residency status.
I know this because I have been through the whole process of starting a business in Costa Rica. Can it be trying? Of course, any startup is, but the rewards are unending, and what a great place to be.
With the onset of COVID-19, unfortunately there will be many small businesses that won’t make it through the crisis. It is a sad situation. However, on the other hand it can be a great opportunity for the person that wants to move to Costa Rica and start a business. Take a look at some of the businesses for sale in our area.
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Can I work from home in Costa Rica? Well the answer is yes and no. I will explain it further on in this article. Now that more and more companies, due to the COVID-19 situation, are telling their employees to work from home, Costa Rica is a great location to do it from.
Personally, I have clients that have purchased 
So how do others successfully work from home in Costa Rica? Well, after they found the right property in paradise and moved here full time, these folks started the residency process. You cannot legally stay in Costa Rica past the 90-day stamp in your passport, hence, starting the process to become a legal resident is important. For assistance with this contact me and I will help guide you to the right people to obtain your Costa Rican residency.
From the National Association of Realtors:
As you just read above, “reducing the need for office space” basically means more people will be working from home. Why not work from your Costa Rican home? I do. I have a home office with everything – printer, laptop, etc. Heck, it is where I am writing this blog from! There is no better place to be right now during this 
Is high-speed Internet available in Costa Rica? It’s an important question because we live in a connected world. If we lose that connection, even in a beautiful place like Costa Rica, we feel isolated and uninformed. While it’s great to unplug and get away from it all once in a while – and Costa Rica is the place to do that – before long we feel the need to be in touch with our friends and family. We want to know what’s going on around us or back home. Moreover, many depend on a reliable high-speed Internet connection to make a living or accomplish other essential tasks.
So, does Costa Rica have high-speed Internet? In a word, yes. The days of sluggish, spotty dial-up Internet are a thing of the past. In the early days, the state-owned ICE (Institute of Costarican Electricity) enjoyed a telecommunications monopoly. That all changed when the Central American Free Trade Agreement went into effect in 2010. ICE’s monopoly was broken, and international telecommunications giants quickly established a foothold. Hundreds of millions of dollars have been invested in fiber optics networks, towers, and other infrastructures. As a result, high speed Internet coverage reached more and more regions of Costa Rica. Today, a higher percentage (85.5%) of Costa Rica’s population has access to Internet than in any other country in Central America. That’s good news if you want to stay connected while visiting or living here.
Want to know who are the Internet service providers in Costa Rica? The forerunner, ICE, is still in the telecommunications business, but now they market their cell phone and Internet service under the brand name Kolbi. ICE’s biggest competitors in the cell phone service market are Claro and Movistar. In addition to cell service, both offer wireless residential Internet packages. Cable television operators have also entered the Internet service provider market. They include Cabletica, Tigo, and Telecable, and all offer packages that include high speed Internet, cable television channels, and a fixed VoIP phone.
Claro uses its network of cell phone towers in conjunction with a residential receiver to provide Internet in homes. Unlike the other Internet service providers, Claro is wireless. Although it has slower download speeds than the others, it may be the only option in areas beyond the reach of cable networks. Satellite Internet service is another wireless option, but expect monthly fees to be several times that of cabled Internet service providers. All Internet service providers routinely offer speed upgrades at no additional cost. As their technology advances, they try to stay competitive. Commercial Internet service, offering greater speeds at a greater cost, is available in some areas. Speeds, prices, and coverage are constantly changing, so check for the latest offers in your area when you are ready to sign up.
Is the Internet reliable in Costa Rica? Blazing download speeds aren’t worth much if you constantly lose your connection. Fortunately, most users in Costa Rica report that their Internet is stable. Yes, just like everywhere else in the world, sometimes the internet goes down, it happens. Some even say it is a better–higher speed and more reliable connection– than they had back home and I can agree totally with that. So, rest assured that you can stay connected on high-speed Internet as you enjoy the wonders of Costa Rica.
Sounds like a far-fetched idea? The truth is, building a home in Costa Rica is not as hard as you may think. Actually, it is rewarding. I know because I have built two in the Playa Hermosa area. It is a great feeling that once you are finished building your home, you can step back and say “See what I did”!
Step 3: Design Your Home
