COUNTRY GUIDE

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Costa Rica

A short guide to building a dedicated offshore team in Costa Rica

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At a glance

Capital
Capital:

San José

Official language
Official language:

Spanish

Population
Population:

5.21 million

Timezone
Timezone:

GMT-6

Developers
Developers:

22,000+

Currency
Currency:

Costa Rican Colón (CRC)

Industry revenue
Industry revenue:

$268.65 million

Investment
Investments in IT sector

$80+ million

global ALLSTARSIT
Capital:

San José

Language
Official language:

Spanish

Population
Population:

5.21 million

Timezone
Timezone:

GMT-6

Developers
Developers:

22,000+

Currency
Currency:

Costa Rican Colón (CRC)

Industry revenue
Industry revenue:

$268.65 million

Industry size
Investments in IT sector

$80+ million

Why build a team in Costa Rica

Overview

Costa Rica, in Central America, is a burgeoning force in the global IT sector, annually producing around 7,000 STEM graduates, indicative of its knowledge-driven economy.

San José, the capital, is the core of the country's tech innovation, brimming with R&D centers and a workforce skilled in diverse tech fields, from software development to cybersecurity.

Internationally, Costa Rica stands tall, exporting double the services of OECD countries and hosting 16 of the top 100 global IT companies. This success is powered by a digitally savvy, innovative workforce, establishing it as a digital hub in Latin America.

The country is an ideal nearshoring destination, excelling in software development, data analytics, cybersecurity, and UX/UI design. Its strategic location, strong English skills, and innovative culture make Costa Rica attractive for businesses seeking top-notch software services and R&D excellence. This stable, innovative, and digitally advanced nation is a prime spot for tech investments.

Top tech hubs

Top tech hubs infographic

Employment Conditions Overview

ALLSTARSIT takes care of everything for you – we have a 360° approach with a full recruitment cycle

Payroll Cycle

In Costa Rica, the payroll cycle typically operates on a monthly basis, with salary payments required to be issued no later than the last working day of each month.

Employer Taxes

26.67%

Overtime Pay

Any work exceeding 48 hours in a week qualifies as overtime, which is compensated at 1.5 times the standard wage. Compensation for working on holidays is double the regular rate. Additionally, there is a daily cap on overtime, restricting it to a maximum of 4 hours.

Paid Leave

In Costa Rica, an employee's eligibility for paid annual leave is determined by their length of service. Typically, employees who have completed 50 continuous weeks of employment are entitled to 14 days of paid leave annually. Those with less than 50 weeks of service receive one day of leave for each month worked.

There's no provision for the accumulation or carryover of leave days, except when an employer and employee explicitly agree to such an arrangement in writing.

Sick Leave

In Costa Rica, employees receive full compensation during the initial three days of sick leave, with the cost evenly split between the employer and social security, each covering 50.00% of the employee's regular salary. Starting from the fourth day, the responsibility shifts to social security, which covers 60.00% of the employee's standard daily wage, relieving the employer of further financial obligations.

To qualify for these benefits, employees must provide a medical certificate to the social security administration within 48 hours from the commencement of their sick leave.

Public and Provincial Holidays

Public holidays

Notice Period

In Costa Rica, the notice period for terminating either a temporary or permanent employee varies based on their tenure, as detailed:

  • Up to 3 months: Immediate termination without notice
  • 3 to 6 months: 1 week's notice
  • 6 months to 1 year: 15 days' notice
  • Over 1 year: 1 month's notice.

13th Month Bonus

In Costa Rica, employers are required to provide a 13th-month salary payment, which must be disbursed by December 20th each year.

Grow your team in Costa Rica with ALLSTARSIT

Setting up a separate business entity in every location where you plan to hire employees or a team is time-consuming and incurs high legal fees.

At the same time, navigating local labor laws and adhering to employee expectations can be a complex and challenging task, as is finding accurate and up-to-date employment information for all your potential hiring locations. Not to mention that tracking invoices and managing employee contracts through email and spreadsheets is messy and error-prone.

Compliance is critical in this context, and we must ensure that we follow local guidelines, particularly regarding taxes and legalities.

ALLSTARSIT streamlines the process by offering an integrated solution for finding and hiring employees, managing HR and payroll, and automating compliance across 20+ countries. All simple and hassle-free.

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What’s possible with ALLSTARSIT?

Staff Augmentation

Choose the right expert professionals required for your specific project, saving time and wasted effort.

This service enables software development companies worldwide to meet any technical needs outside their core skill set by adding specialized staff on demand while retaining control of the project's specifications and scope.

Dedicated Teams

Establish R&D / Tech Support / QA & Testing / DevOps / Data Entry Centers in your chosen location.

Forget about investing in facilities, equipment, technology, or human resources. We manage all necessary operations as your specialist. This can help you save money and resources, all while reducing frustration and simplifying internal processes.

EOR / Contractor Management

Use ALLSTARSIT as your EOR / CM to easily hire employees in new countries without setting up a legal entity.

We act as the employer for your new hire, handling all HR, payroll, tax, and compliance requirements on your behalf, while you maintain control of their workload.

Staffing & Recruiting

Tap into a wide talent pool of top-tier engineers from our database. We will find the right fit for your business and help you reduce your hiring timeline.

Headhunting

Signing bonuses

Vacancy promotion

Free replacement

Preliminary interviews

HR interviews

HR Operations

Attract, hire, and retain top talent, building a motivated workforce that drives your business forward.

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Non-employee-employer liability

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Managing tech equipment

Retention and risk analysis

Performance reviews

Compensation revision & expense returns

1:1 meetings (180-degree)

Monthly reports

Performance reviews & periodic surveys

Ongoing client and expert support

Our solutions

Hire Employees / Contractors Solution Icon
Hire Employees / Contractors
Offer Corporate Benefits Solution Icon
Offer Corporate Benefits
Onboard & Retain Global Teams Solution Icon
Onboard & Retain Global Teams
Secure Office Space Solution Icon
Secure Office Space
Run Payroll Solution Icon
Run Payroll
Provide Health Insurance Solution Icon
Provide Health Insurance
Implement L&D Program Solution Icon
Implement L&D Program
Provide Health Insurance Solution Icon
Provide Health Insurance
Hire Employees / Contractors Solution Icon

Hire Employees / Contractors

Expand your business globally and hire employees or contractors quickly and efficiently by partnering with ALLSTARSIT, who can act as your EOR/CM and handle the administrative and legal aspects of their employment while you control their workload.

Offer Corporate Benefits Solution Icon

Offer Corporate Benefits

Improve your employees' well-being and job satisfaction by offering them a range of corporate benefits through ALLSTARSIT, including wellness consultant sessions, music lessons, workations, gym compensation, and employee recognition programs.

Onboard & Retain Global Teams Solution Icon

Onboard & Retain Global Teams

Keep track of your team's progress and satisfaction with ALLSTARSIT's monthly reports and periodic surveys, allowing you to identify any issues and make necessary adjustments to retain top talent.

Secure Office Space Solution Icon

Secure Office Space

Enhance your employees' working experience by offering them the possibility of working from an office or securing a seat in a premium co-working space shared area through ALLSTARSIT.

Run Payroll Solution Icon

Run Payroll

Simplify your HR operations and ensure your employees receive timely and accurate paychecks with ALLSTARSIT's comprehensive payroll solution.

Provide Health Insurance Solution Icon

Provide Health Insurance

Increase your employees' satisfaction and productivity by providing them with the peace of mind that comes with having access to a reliable and comprehensive health insurance package made possible by ALLSTARSIT.

Implement L&D Program Solution Icon

Implement L&D Program

Invest in your employees' professional development by implementing a comprehensive L&D program that includes access to online education platforms, language classes, and technical meetups, courtesy of ALLSTARSIT.

Customer Service Support Solution Icon

Customer Service Support

Build a Customer Care or a Customer Support team to ensure that your business excels in providing exceptional assistance to your customers.

Whether you need a team of professionals that can handle relationship building and product knowledge or a group of Tier 1/2/3 engineers that can help with troubleshooting and other technical issues, ALLSTARSIT can help you find, hire and manage them.

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Trusted by teams and partners

ALLSTARSIT Client's logo - NetAppALLSTARSIT Client's logo - OracleALLSTARSIT Client's logo - SapALLSTARSIT Client's logo - Johnson&Johnson ALLSTARSIT Client's logo - IntelALLSTARSIT Client's logo - ImpervaALLSTARSIT Client's logo - Cato NetworksALLSTARSIT Client's logo - TaboolaALLSTARSIT Client's logo - YotpoALLSTARSIT Client's logo - NetafimALLSTARSIT Client's logo - NetAppALLSTARSIT Client's logo - OracleALLSTARSIT Client's logo - SapALLSTARSIT Client's logo - Johnson&Johnson ALLSTARSIT Client's logo - IntelALLSTARSIT Client's logo - ImpervaALLSTARSIT Client's logo - Cato NetworksALLSTARSIT Client's logo - TaboolaALLSTARSIT Client's logo - YotpoALLSTARSIT Client's logo - Netafim

ALLSTARSIT office in Costa Rica

ALLSTARSIT  Office Location
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