Employ Candidates Compliantly in Costa Rica

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  1. Overview: Costa Rica
  2. Global HR Compliance
  3. Global PEO and payroll
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
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Global PEO and Payroll in Costa Rica

Getting your business up-and-running in Costa Rica can be challenging, especially if you do not speak the native language. Establishing your own business entity in Costa Rica is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in Costa Rica, you should be fully aware of the risks involved.

Acumen’s Global PEO and Payroll solution was designed especially for companies like yours, to smooth the way for quick, easy and risk-free business operations in Costa Rica, without having to establish a legal business entity.

Acumen International – Your Professional Employer Organization in Costa Rica

Navigating the Costa Rican legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Costa Rican speaker. Partnering with Acumen International as a global Professional Employer organization (PEO) provides you with the local knowledge and support you need to conduct business in Costa Rica without concern for legal and compliance risks.

Whether you represent international client companies or you are taking your own business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and expat employees in Costa Rica. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.

International Global Payroll and Taxation in Costa Rica

Employment related taxes

Income taxes on individuals in Costa Rica are levied on local income irrespective of nationality and resident status.

For individuals domiciled in Costa Rica, any income obtained within the boundaries of Costa Rica is considered as Costa Rican-source income and is taxable. Costa Rican-source income is understood to be any income derived from assets used, goods located, or services rendered within Costa Rican territory.

Non-residents are liable only for the applicable withholding taxes (WHTs), depending on the nature of the local income.

The Costa Rican tax system is based on the principle of territoriality, according to which any business activity in Costa Rica is subject to income taxation on local income in the same way as a registered business, irrespective of the place of incorporation. Such corporations doing business in Costa Rica are subject to the permanent establishment (PE) rules.

Under the Costa Rican Income Tax Law, income from transactions carried out abroad may be regarded as non-Costa Rican-source income and then not subject to income taxes.

It is important to bear in mind that Costa Rican income tax applies to those incomes considered as directly related to the economic structure of the country. This does not strictly relate to economic activity inside Costa Rica, but provides a wider concept of territoriality.

13th salary in Costa Rica

The only mandated bonus in Costa Rican private labor law is the Christmas Bonus, typically called aguinaldo.24 This bonus is the equivalent of 1/12th of all the salary received during the period ranging from December 1 of one calendar year to November 30 of the next, or the equivalent, if the employee did not work all months during this period.

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How Acumen’s International PEO and Payroll Service can Benefit Your Business in Costa Rica

Compensating your local and expat workforce in Costa Rica and closely adhering to Costa Rican taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.

Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with Costa Rican labor and taxation laws.

It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.

Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in Costa Rica by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.

Disclaimer: Any of the above information is subject to changes imposed by Costa Rican laws. To get the latest updates on taxation in Costa Rica and in 190 countries worldwide, contact Acumen’s team of global employment experts.

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