Foreign companies investing in Costa Rica benefit from a robust legal framework that protects intellectual property, enforces contracts, and aligns with US and international business law standards through CAFTA-DR and WTO membership.
Intellectual Property Protection
Costa Rica is a signatory to the TRIPS Agreement and CAFTA-DR, both of which establish strong IP protection standards. Patents, trademarks, copyrights, and trade secrets are all legally protected under Costa Rican law.
Investment Protection
The CAFTA-DR agreement includes investor-state dispute settlement (ISDS) provisions, giving US and Canadian companies legal recourse against government actions. Costa Rica has bilateral investment treaties with multiple countries.
Business Legal Structures
Foreign companies can operate in Costa Rica as: a Sociedad Anónima (SA — equivalent to a corporation), Sociedad de Responsabilidad Limitada (SRL — equivalent to an LLC), or a Branch Office of a foreign corporation. Each has different liability, administration, and tax implications.
Labor Law Overview
Costa Rica’s labor code (Código de Trabajo) is employee-friendly by Latin American standards. Key provisions include: mandatory 13th month salary (Aguinaldo), minimum 2 weeks vacation after 50 weeks, and CCSS (social security) contributions of ~26% of payroll paid by employer.