For up to date Information visit this link: https://www.bizlatinhub.com/professional-employer-organization-peo-costa-rica/ Costa Rica is one of a great Central American commercial jurisdictions. The region is very stable economically and has a rapidly growing service sector. For these reasons, many foreigners are looking towards Costa Rica as an attractive investment destination. Before engaging in the employment process in Costa, it is important to be clear on employment law, in addition to identifying the best method to hire staff. Unsure of your employment requirements and obligations? Undecided on the best method to hire staff? Stay informed and watch our short presentation below.

1. Hiring Employees +
Recruitment Requirements in
Costa Rica
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Key Considerations: Employment
Find below, some of the key considerations that should be taken into account before contracting staff in Costa Rica
Yes – 90 days
Is there an employee
probation period?
Yes
Do staff need a local
employment
contract?
Yes
Can expatriate staff
be hired?
Minimum of 14
days
Vacation
entitlement
Max employer
contribution is
26.3%
Total cost of
employment
Employers - they
must also pay
employee’s social
security
Who manages
withholding tax?
• Christmas Bonus
• Medical Insurance
• Life Insurance
• Savings fund
Employee benefits

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Pathways to Hiring Staff
Through a local
legal entity
Through a PEO solution:
Professional Employer
Organization

4. Forming a Legal Entity in Costa Rica
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In Costa Rica, there are (2) main types of legal entities:
The Limited Liability Company (LLC) and The Joint-Stock Company (Business Corporation)
Advantages:
• Greater control of your employees
• Better knowledge of local market,
laws and regulation
• Viewed more positively than a
PEO solution
Disadvantages:
• High set-up/ongoing costs
• Administration involved in
managing a local company
• Accounting and tax obligations

5. Professional Employer Organization
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Advantages:
• You can operate without forming
and maintaining a local entity
• Limited legal responsibility
• Cost-effective way to convert
international contractors into
employees
Disadvantages:
• The PEO becomes a co-employer
• Loss of control
• Costs involved with PEO services
• Compromised company culture
International PEO is a method to employ staff without having your own company

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contact@bizlatinhub.com
Are you looking to hire staff?
As you are now aware, you have two
options to hire staff:
a) Through a Local Legal Entity or
b) Through a PEO solution
Need assistance hiring employees?
Partner with Biz Latin Hub to learn how we can
support you and your business in Latin America

7. Doing Business in Costa Rica?
Learn More Here!
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How to Open a
Company / Corporate
Bank Account in
Costa Rica?
Different Types of
Companies / Legal
Entity Structures in
Costa Rica
10 Steps to Register
a Company in Costa
Rica with an
Incorporation Agent