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Payroll in CrCosta Rica.






Country Capital

San José


Costa Rican colón (CRC)

Expanding to Costa Rica is an exciting strategic move for businesses, but there are necessary factors to consider that are key to success. One such factor is how to set up Costa Rica payroll in compliance with local laws.

Taxation rules in Costa Rica

Costa Rica’s Social Security System is called the Caja and provides employees with healthcare, sick leave, disability pensions, and retirement benefits. The employer is required to register all employees and contribute 26.67% of their salary. Employees must contribute 10.67%.

Employers also need to make sure employees are registered to pay personal income tax. Costa Rica uses a progressive income tax scale that goes up to 25%. Companies also use a progressive scale for corporate income tax that fluctuates based on profits. Depending on what the company earns in a year, they could owe up to 30%.

Costa Rica payroll options for companies

There are 3 main payroll options in Costa Rica:

  • Internal: Operating an internal payroll can help larger companies demonstrate their commitment to Costa Rica. However, companies will need a bigger budget to hire a full HR team.
  • Costa Rica payroll processing company: A processing company is a solution to outsourcing payroll, but you will still be responsible for compliance.
  • G-P: By partnering with and Employer of Record like G-P, companies can expand their global footprint without the hassle of entity setup and management. With G-P, all employees will be paid punctually and compliantly so employers can focus on other key aspects of their business.

How to set up payroll in Costa Rica

Before setting up payroll in Costa Rica, companies must establish a subsidiary in the country. The process to set up a subsidiary can take weeks or months, depending on where the company is incorporated and the type of entity chosen. However, it’s a necessary step before hiring employees, running payroll, and starting operations in Costa Rica.

Streamline global payroll management with G-P.

G-P streamlines each step of the payroll management process with our market-leading Global Growth Platform™. Pay your team with confidence anywhere in the world in 150 currencies with our 99% on-time automated payroll system — all with just a few clicks. Our products also integrate with leading HCM solutions, syncing employee payroll data across platforms automatically to create one reliable, convenient source of truth for HR teams.

Contact us to learn more about how we can support you.


THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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