5 Things to Avoid When Doing Business in Costa Rica

 

1. Ignoring labor laws: Costa Rica has employee-friendly labor laws, including severance pay, vacation entitlements, and limits on working hours. Ignoring these could lead to lawsuits.
2. Overlooking environmental regulations: Costa Rica is strict on environmental protection. Businesses must adhere to environmental laws and obtain permits before any development or changes to land use.
3. Not securing necessary permits: Operating without the correct permits can result in fines or closure. Always ensure you are legally compliant with zoning, health, and safety requirements.
4. Poorly written contracts: Vague or poorly written business agreements can lead to disputes. Always draft contracts with clarity and ensure they are legally sound.
5. Ignoring tax obligations: Costa Rican tax law is complex, and non-compliance can lead to hefty fines. Make sure your business complies with all local tax laws and deadlines.