Home / Business  / Freelance Worker: How to Be in Compliance?

Freelance Worker: How to Be in Compliance?

We know that each country has different regulations. When independent workers wish to be in compliance as freelance workers in Costa Rica, they must meet the following requirements: Tax obligations: Register with the Ministry of Finance

We know that each country has different regulations. When independent workers wish to be in compliance as freelance workers in Costa Rica, they must meet the following requirements:

  1. Tax obligations:

  1. Register with the Ministry of Finance in accordance with the economic activity to be undertaken.

  2. Consult with an accountant about the process and get help with it.

  1. Register and obtain insurance through INS according to the business activity. The purpose of this insurance is to cover occupational risks.

  2. Register and obtain insurance as an independent worker in accordance with the economic activity through the CCSS (Costa Rican Social Security Fund). The purpose of this insurance is to receive assistance from the CCSS in the form of Disability, Old-Age and Death insurance and, more importantly, Costa Rican legislation requires it.

After the initial processes, independent workers will have the following obligations:

  • Pay the INS insurance fee either on a monthly basis, semi-annually, or annually.

  • Pay the CCSS insurance fee on a monthly basis.

  • Comply with the declaration of the value added tax each month. This requires the assistance of an accountant.

  • Comply with the income statement, which requires the assistance of an accountant.

  • Pay the value added tax monthly according to the declarations.

  • Pay the income tax in advance, if the worker wishes to do so, or make a single payment at the end.

  • If the business activity is regulated by a professional association, the worker must be up to date with the payment of any required monthly fees.

  • If the worker is associated with any associated fund such as the Social Development Fund and Family Allowances (FODESAF), they must be up to date with all payments.

On the other hand, if an independent professional also hires other workers, they must also meet the labor tax obligations of having a payroll, social security, monthly payroll reports, and also comply with the labor rights of those on their payroll, in addition to all the above.

This information is subject to change through modifications to our labor legislation. Remember that our legislation is constantly in flux.

Share

karenulate@outlierlegal.com

Karen Ulate serves as the Senior Business Attorney and Notary Public at Outlier Legal. She has a Postgraduate Degree in Notary and Registry Law, and is currently studying her Master's in Business Administration. With over 10 years of experience in Corporate Law, Real Estate, Customer Service and Team Management. Positive and proactive, are some adjectives that fit her perfectly.

Review overview
2 COMMENTS
  • Pablo Elguera March 29, 2021

    Hello! This apply Also for tourists?

    I dont get the ins part very well. How that procesos wil be?

    Thanks.

    • Stacey Jennings April 5, 2021

      This applies only to legal residents, who can work under their residency category or who have a work permit

POST A COMMENT