How To Hire in Costa Rica: Complete Guide

As remote work continues to reshape the global job market, Costa Rica has positioned itself as a top hub for international hiring. With a highly educated workforce, strong English proficiency, and a thriving business environment, the country is an ideal location for companies looking to expand their remote teams with top-tier talent.

How to Hire Remote Talent in Costa Rica

Costa Rica is a top destination for global hiring, offering skilled workers in technology, finance, customer service, and marketing. With a strong remote work infrastructure, hiring independent contractors or full-time employees is an attractive option.

1. Contractor

Hiring independent contractors in Costa Rica provides flexibility and cost savings. However, businesses must ensure contractor agreements do not resemble employment relationships to avoid misclassification risks.

• Recruiting: Lupa helps you find and vet the best independent contractors, while you manage onboarding and payments.
• RPO: We fully manage sourcing, screening, and hiring for a fixed monthly fee, ensuring you hire top talent without adding internal overhead.

2. Staffing Model

Partnering with a staffing agency allows businesses to hire full-time employees without managing payroll, employee benefits, or compliance.

Lupa’s staffing services help companies recruit skilled workers in Costa Rica while handling employment contracts, payroll, and social security contributions.

3. EOR (Employer of Record)

An Employer of Record (EOR) enables companies to hire employees in Costa Rica without setting up a legal entity. The EOR solution manages payroll, taxes, and labor law compliance, reducing the risks of employment misclassification.

This is especially useful in countries like this one, where Costa Rican labor laws require employers to comply with social security (CCSS), maternity leave, and severance pay obligations.

Can US Companies Hire Remote Employees from Costa Rica

Yes! U.S. companies can hire remote employees in Costa Rica without setting up a local entity. The country’s strong remote work culture, high English proficiency, and skilled workforce make it an attractive destination for global hiring.

By hiring independent contractors, businesses avoid complex employment laws, social security contributions (CCSS), and payroll taxes. Lupa helps U.S. companies streamline contractor payments, ensuring fast and compliant payouts in Costa Rican colón (CRC) or USD.

Remote Roles to Hire in Costa Rica

When considering remote hiring in Costa Rica, certain remote jobs in Costa Rica stand out as particularly suitable for remote work, such as:

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Why Hire Remote Employees from Costa Rica?

• Costa Rican culture is centered on optimism and a balanced yet dedicated work ethic, which makes remote work a natural fit—especially in the tech sector.

The country's workforce values flexibility, collaboration, and efficiency, making it an attractive choice for global employers.

• Costa Rica fosters a thriving innovation ecosystem backed by government education initiatives and startup-friendly policies.

The country ranks third on the Global Innovation Index in Latin America, with a strong emphasis on software development, service outsourcing, and emerging green technologies.

• Nearly 99% of Costa Rica’s electricity comes from renewable sources, reinforcing its commitment to sustainability.

Many businesses in the country prioritize green technology and eco-friendly operations, making it a unique hub for companies with sustainability goals.

• With a population of approximately five million people, Costa Rica has a diverse and highly educated workforce.

Professionals are known for their strong educational background, continuous learning mindset, and adaptability, ensuring that companies benefit from a skilled and future-ready talent pool.

• The country stands out for its high concentration of IT and creative professionals, making it a key destination for businesses looking for bilingual tech talent.

Costa Rican professionals are known for their problem-solving abilities and commitment to delivering high-quality work, making them valuable assets to international teams.

Labor Costs in Costa Rica vs. USA

Costa Rica offers significant cost savings compared to the USA, making it an attractive destination for companies seeking high-skill talent at a lower cost. While professionals in fields such as technology, marketing, finance, and human resources earn competitive salaries, businesses still benefit from labor cost reductions of up to 70%.

Additionally, Costa Rica’s employment regulations, overseen by the Ministry of Labor and Social Security, require certain entitlements such as Christmas bonuses (Aguinaldo), severance pay, and notice periods under just cause termination.

However, hiring through Lupa as independent contractors allows companies to bypass these obligations while still accessing top-tier talent. This flexibility enables businesses to expand efficiently while remaining compliant with global hiring standards.

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How to Pay Talent in Costa Rica

Paying independent contractors or full-time employees in Costa Rica requires understanding exchange rates, banking systems, and global payroll solutions. Businesses must ensure compliance with tax regulations while selecting the most efficient payment method. 

Bank transfers

A direct and reliable option for sending money to Costa Rican bank accounts, though fees and processing times can vary.

PayPal

A widely used digital payment platform that allows fast and secure transactions, but it may involve high fees and currency exchange costs.

Global payroll providers

Platforms like Deel, Ontop, and Oyster help companies pay employees with lower fees, competitive exchange rates, and tax compliance assistance.

Cryptocurrencies

Some Costa Rican professionals accept Bitcoin, Ethereum, and other cryptocurrencies, though regulatory concerns may apply.‍

Wise

A cost-effective solution for international money transfers, offering real exchange rates and lower fees than banks.

Hiring Remote Trends in Costa Rica 2025

• Demand for software developers, cybersecurity specialists, and IT professionals continues to rise as companies seek Costa Rican talent for remote work opportunities.
• Foreign direct investment in Costa Rica’s tech and IT sector remains strong, with major corporations like Intel, IBM, and HP maintaining operations due to the country’s highly skilled workforce.
• Companies are emphasizing continuous skill development, with training programs in cloud computing, AI, and data analytics to keep professionals up to date with global hiring demands.
• The growth of fintech and e-commerce industries in Costa Rica is driving the need for finance, accounting, and digital marketing experts, providing more remote work opportunities.
• Hybrid and remote work models are becoming the norm, as businesses streamline their hiring processes to attract bilingual and highly skilled professionals from Costa Rica.

Talent Hubs in Costa Rica

To successfully hire employees in Costa Rica, it's essential to focus on cities with strong talent pools and specialized industries. Here are key talent hubs in Costa Rica:

• ‍San José: The capital and main economic hub, San José is home to many tech companies, multinational corporations, and startups. With top universities and a well-developed infrastructure, it attracts skilled workers in IT, finance, and customer service.‍
• Heredia: Known as the “City of Flowers,” Heredia is a major educational and industrial center. The city is home to biotech firms, high-tech startups, and global companies, making it a hotspot for technology and service outsourcing.‍
• Alajuela: An industrial and agricultural hub, Alajuela is known for logistics, fintech, and cybersecurity sectors. It provides a growing digital marketing and tech talent pool, ideal for businesses expanding into Costa Rica.‍
• Cartago: One of the oldest cities in Costa Rica, Cartago blends history with modern technological growth. Home to the Costa Rica Institute of Technology (TEC), it produces top talent in software development, IT services, and engineering.SsS

Labor Laws in Costa Rica

Costa Rica has comprehensive labor laws designed to protect employee rights while ensuring compliance for employers. Companies hiring in Costa Rica must be aware of the following key regulations:

Minimum Wage

As of 2025, the minimum wage in Costa Rica is $724 USD for unskilled workers and $1,546 USD for university graduates. Employers must comply with minimum wage laws to maintain legal and ethical employment practices.

Salary Payment 

Employee salaries are determined by employment contracts and can be paid bi-weekly or monthly. Understanding Costa Rica’s payroll system is essential for smooth operations.

Working Hours and Overtime

A standard workweek is 48 hours for most industries. Employees are entitled to overtime pay for hours exceeding this limit.

Notice Period

Employees terminating their contract must adhere to a notice period as stipulated in Costa Rica’s labor code.

Annual Leave and Public Holidays

Employees receive 12 paid public holidays, including Labor Day and Independence Day. After one year of employment, workers are entitled to two weeks of paid vacation.

13th Month Salary (Aguinaldo)

Employees receive an extra salary payment, known as Aguinaldo, by December 20th each year. This is equivalent to one-twelfth of the total salary earned throughout the year.

Social Security (Caja Costarricense de Seguro Social - CCSS)

Employers must contribute to social security, which covers healthcare, pension, maternity leave, and unemployment benefits.

Maternity and Paternity Leave

Female employees receive four months of paid maternity leave, while paternity leave policies vary depending on company agreements.

Sick Leave and Health Insurance

Employees are entitled to sick leave, with compensation provided through CCSS and employer contributions. Many companies also offer private health insurance as part of their employee benefits.

While these Costa Rican labor laws provide essential protections for employees, companies hiring through Lupa can bypass many of these legal requirements by engaging workers as independent contractors.

This allows businesses to stay compliant while benefiting from Costa Rica’s highly skilled workforce without the complexities of employment contracts and social security obligations. However, understanding these laws is crucial to aligning expectations and maintaining strong working relationships with Costa Rican talent.

NDAs in Costa Rica‍

Non-Disclosure Agreements (NDAs) in Costa Rica are enforceable under local contract law and are widely used to protect confidential business information, intellectual property, and trade secrets.

While NDAs offer legal protection, companies hiring through Lupa can engage international contractors who are not bound by Costa Rican labor laws, ensuring additional flexibility while maintaining strong confidentiality measures.

Understanding NDAs and their role in employment contracts can help businesses safeguard their competitive advantage when working with Costa Rican professionals.

Holidays in Costa Rica

Costa Rica has 12 national holidays, which are deeply rooted in the country's history and cultural traditions. Employers should be mindful of these dates when managing employee schedules or offering time off benefits.

• ‍January 1: New Year's Day‍
• March 28: Holy Thursday‍
• March 29: Good Friday‍
• April 11: Juan Santamaría Day‍
• May 1: Labor Day‍
• July 25: Annexation of Guanacaste Day‍
• August 2: Virgin of Los Angeles Day‍
• August 15: Mother’s Day‍
• September 15: Independence Day‍
• October 12: Cultures Day‍
• December 25: Christmas Day‍
• December 31: New Year's Eve

Recognizing these holidays and considering paid time off for employees helps foster an inclusive and respectful work environment.

While international contractors hired through Lupa are not required to follow Costa Rica’s employment laws, understanding these holidays is crucial for managing work expectations and maintaining strong professional relationships with Costa Rican talent.

Characteristics of Costa Rican Talent

Costa Rica offers a highly skilled, bilingual workforce, making it a preferred location for global hiring. The country's talent pool is shaped by its strong educational system, remote work adaptability, and multilingual capabilities.

Remote Employment Growth

Costa Rica has a booming remote work sector, especially in software development, cybersecurity, customer service, and digital marketing. The demand for remote employees continues to rise due to technological advancements and international business expansion.

Exceptional Education Levels

Costa Rica has 61 universities, with 7,000 graduates per year in STEM-related fields, including engineering, IT, and digital services. Institutions like the University of Costa Rica and the Costa Rica Institute of Technology (TEC) play a significant role in shaping the workforce.

English Proficiency

The country has a high level of English proficiency, particularly in major cities like Heredia, San José, and Alajuela. This makes Costa Rican professionals well-suited for multinational companies and global hiring initiatives.

Multinational Business Presence

Major corporations, including Intel, Amazon, and HP, operate in Costa Rica due to its skilled workforce, favorable tax rates, and business-friendly policies.

Work Permit and Visa Accessibility

Foreign professionals looking to work in Costa Rica benefit from structured visa programs and streamlined work permit processes, making the country an attractive destination for global talent.

Start Hiring Remote Costa Rican Talent with Lupa Today

Hiring Costa Rican professionals can diversify your team and strengthen your Latin American operations. However, understanding the country's cultural and employment landscape is essential for successful hiring. Lupa simplifies the process, helping U.S. companies efficiently recruit, interview, and onboard remote talent in Costa Rica and across Latin America—without complications or risks.

Lupa provides a seamless hiring experience by offering recruitment, RPO, and staffing solutions. Whether you need expert talent sourcing, a fully managed hiring process, or a scalable staffing model, Lupa ensures compliance and efficiency every step of the way. Book a call! 

FAQs

What is the minimum wage in Costa Rica?

As of 2025, the minimum wage varies based on job categories. For unskilled workers, it is $724 USD per month, while university graduates earn at least $1,546 USD.

How can U.S. companies hire employees in Costa Rica?

U.S. companies can hire independent contractors or use an Employer of Record (EOR) to manage payroll, compliance, and social security without setting up a legal entity. Lupa provides recruitment and staffing solutions to help businesses find and manage the best talent seamlessly.

What are the working hours in Costa Rica?

The standard workweek is 48 hours, with a maximum of 6 days per week. Employees working beyond this limit are entitled to overtime pay.

What are the mandatory employee benefits in Costa Rica?

Employees receive health insurance, maternity leave, parental leave, sick leave, severance pay, and contributions to the Costa Rican Social Security Fund (CCSS). Businesses hiring through Lupa can offer customized benefits packages for independent contractors.

What taxes apply to employees and businesses in Costa Rica?

Employees pay income tax based on salary brackets, while employers contribute to social security and payroll taxes. Lupa ensures compliant payroll management for international businesses, handling all tax rates and reporting obligations.

Do foreign professionals need work permits in Costa Rica?

Yes, work permits are required for foreign employees, except for independent contractors, who are not tied to local labor laws. Companies hiring through Lupa’s global staffing solutions can easily onboard international talent without dealing with local work permit restrictions.

What is the 13th-month salary (Aguinaldo)?

Employees receive an extra month’s salary, called Aguinaldo, paid by December 20th each year, based on total earnings from the past year. While full-time employees receive this benefit, independent contractors hired through Lupa are not required to receive Aguinaldo, making hiring more cost-effective.

What is the notice period for terminating employees?

The notice period varies by employment duration, typically ranging from one to three months. Hiring international contractors through Lupa allows for more flexibility, as they are not subject to Costa Rican termination laws.

How do businesses pay independent contractors in Costa Rica?

Lupa offers global payroll solutions, ensuring secure and compliant cross-border payments in USD or CRC via bank transfers, PayPal, and Wise. Our system streamlines payments, avoiding unnecessary tax complications and ensuring contractors receive payments on time.

Why should companies hire Costa Rican talent?

Costa Rica has a highly skilled workforce, strong English proficiency, and favorable tax rates, making it a key hub for remote work and outsourcing. With Lupa’s recruitment, staffing, and RPO solutions, businesses can quickly access top professionals without navigating local labor laws and employment complexities.