Q COSTARICA — The presence of foreign talent in Costa Rican companies continues to increase: sectors such as technology, tourism, manufacturing, and corporate services are increasingly turning to foreign professionals to meet specific needs.
However, the incorporation of foreign nationals into the national workforce requires strict compliance with immigration and labor regulations by both the employee and the employer. Ignoring these obligations can have significant economic and legal consequences.
The Ley General de Migración y Extranjería (General Law on Immigration and Foreigners) is clear: no foreigner may perform paid work in Costa Rica without an immigration status that expressly authorizes them to work.
This permit may be derived from: temporary residency through employment; temporary residency through marriage to a Costa Rican citizen; permanent residency; or authorizations granted to asylum seekers, among others.
It is essential to note that simply having an immigration process underway—including filing documents or obtaining an appointment—does not grant any authorization to begin work, with the exception of applications for temporary residency for employees, submitted through the window for companies registered with the immigration authority.
Once the employee has the appropriate immigration status, the company assumes several obligations; among the most important is enrolling the employee in the Costa Rican Social Security Fund (CCSS) from the effective start of their employment. CCSS coverage is an essential requirement in any formal employment relationship.
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Regarding occupational risks, the employer must also have a workers’ compensation insurance policy that covers their employees. This applies to both nationals and foreigners and ensures that the employee is protected against potential workplace accidents. The absence of this policy not only puts the employee at risk but can also result in significant financial liabilities for the company.
Document verification is another key aspect. Companies must ensure that foreign workers maintain their immigration status up to date and have all the necessary documents to support their employment and immigration status. It is also advisable to keep an internal record of expiration and renewal dates to prevent workers from accidentally falling into an irregular situation.
Hiring a foreign worker without a work permit carries serious risks.
Immigration law establishes fines ranging from two to twelve base salaries for employers who employ unauthorized individuals. Additionally, the immigration service (Dirección General de Migración y Extranjería – DGME) could initiate administrative proceedings, request inspections, or even order the suspension of the foreign worker’s employment, as well as their deportation.
Hiring foreign workers is fully legal within the Costa Rican legal framework; however, it requires rigor.
Companies must be diligent, verifying immigration status before allowing the individual to begin work and constantly monitoring the corresponding permits and their expiration dates.
Proper management protects both the employee and the employer and ensures compliance with national regulations.