How to Register a Sole Proprietorship (Persona Física / Trabajador Independiente) in Costa Rica

Working as a sole proprietor is appealing in Costa Rica because of the flexibility, lower upfront formalities, and the ability to start small. Many people like that you can control your hours, choose your clients, and avoid some of the complexity of forming a full company.

It is relatively easy, though not entirely without bureaucracy. Key challenges include registering with several government agencies, ensuring compliance with social security (CCSS), fulfilling tax filings, and sometimes obtaining local permits. Costs are modest but vary depending on the nature of the work. The main benefits are independence, simpler accounting than a full corporation, and lower cost to begin.

In this guide, we’ll take you through the steps you need to follow to start your journey as a sole proprietor in Costa Rica.

Disclaimer: This article is for informational purposes only and is not a substitute for legal advice. Please always check official sources or seek professional guidance before taking action.

What is a sole proprietorship in Costa Rica?

In Costa Rica, a sole proprietorship is often just referred to as persona física working como trabajador independiente or trabajador autónomo. Sometimes the term empresa individual is used. The term Persona Física describes a legal model where a single individual runs a business without forming a separate corporate entity.

Depending on context, it may also be referred to as:

• Sole trader

• Self-employed worker

• Independent contractor

These all describe the same business model: one person legally running a business without forming a separate company.

How does a sole proprietorship (persona física / trabajador independiente) work in Costa Rica?

Here are the key aspects:

Persona física vs E.I.R.L. vs S.R.L. in Costa Rica

While many start as a persona física because it is the fastest and cheapest option, others may prefer the extra protection or credibility of a formal legal entity.

Two of the most common alternatives are the Empresa Individual de Responsabilidad Limitada (E.I.R.L.), which allows a single owner to limit liability, and the Sociedad de Responsabilidad Limitada (S.R.L.), a flexible company structure typically used by small and medium-sized businesses.

The choice largely depends on your risk tolerance, whether you plan to work alone or with partners, and how much administrative complexity you are willing to handle.

Step-by-step guide: How to register a sole proprietorship in Costa Rica

Step 1: Check if you are eligible to become a Persona Física / Trabajador Independiente

You should have valid identification (Costa Rican cédula or foreign DIMEX) and legal authorization to work; you will use these details to create your tax account and to enroll in social security as a trabajador independiente with the Caja Costarricense de Seguro Social (CCSS).

Step 2: Choose your business name (if not just using your own name)

If you operate under your own personal name, you generally don’t need to register a separate trade name; if you want a distinct commercial name, you should search and register it through the Registro Nacional systems. You can start with the online consultations portal and the “Consulta por nombre” guidance from the Registro de Personas Jurídicas to verify name availability; if you later want exclusive protection as a distinctive sign, you can use the Registro de Propiedad Intelectual online services to file a “Nombre comercial.”

Step 3: Gather required documents

Depending on your status, you may need:

• Valid identification (passport or cédula)

• Proof of legal status (residency permit if foreign)

• Proof of address (local address)

• Description of economic activity

• For trade name: name reservation confirmation from Registro Nacional

• Bank account information (if needed) for tax refunds etc.

Forms are generally available at the offices of:

• Dirección General de Tributación (tax authority) for tax registration

• Caja Costarricense de Seguro Social (CCSS) for social security registration

• Registro Nacional for name reservation/business registration

The specific downloadable forms depend on the municipality and exact activity; these are published on the official websites of those bodies.

Step 4: Register as a taxpayer and enable e-invoicing

Create your account and complete your tax registration in the government’s virtual office. The Ministry announced that TRIBU-CR would replace legacy tools and include modules for the Registro Único Tributario, declarations and payments, and a free e-invoicing tool (“Tico Factura”) using electronic comprobantes version 4.4. However, following a court measure, Hacienda reprogrammed the main TRIBU-CR launch for 6 October 2025, so until the switchover, you may still see legacy links like ATV while the transition completes.

Once your profile is active, you should enable electronic invoicing according to the version 4.4 technical framework.

Step 5: Pay registration fees and contributions

If your activity requires a municipal patent, you apply with your local municipality and pay the license and municipal tax according to its ordinance; many municipalities publish annual forms and deadlines (for instance, San Carlos specifies its 2025 sworn declaration window), and amounts vary by canton and activity.

Separately, once enrolled as a trabajador independiente with the CCSS, you will receive monthly billing; CCSS guidance indicates contribution payment windows typically fall in the 16–20 date range each month, and you manage billing and payments through the CCSS Oficina Virtual.

Financial and tax obligations for sole proprietors in Costa Rica

• Income taxes: Progressive personal income tax for self-employed income, as noted above. Rates for 2025 are 0%, 10%, 15%, 20%, 25% depending on brackets.

• Social security/pension: Must register with CCSS and make contributions as a Trabajador Independiente. The contribution base is tied to declared income.

• VAT (IVA): 13% standard rate on taxable goods and services. If your goods/services are subject to VAT, you must collect and remit.

• Record-keeping requirements: Keep receipts, invoices, records of clients and income/expenses; may need digital or paper accounting depending on size; required for tax audits.

• Payment schedule: Annual tax returns, possibly quarterly or monthly prepayments for social security, and VAT periodic filings.

Launch your contracting career and stay compliant with Deel

Registering as a sole proprietor gives you independence, but it also means handling taxes, invoices, and records on your own. Deel’s all-in-one platform helps you manage obligations without the stress. With Deel, you can:

• Automate invoicing and expense tracking with essential Bookkeeping tools
• Create, send, and sign localised work agreements
• Keep accurate records for tax season
• Access expert tax advice and compliance support
• Get paid through multiple payment and withdrawal methods
• Spend your earnings in USD with the Deel Card
• Access funds early with Deel Advance
• Enjoy contractor perks from 150+ partners

Stay independent, without the admin overload. Sign up to Deel for free today.

FAQs

What is the minimum capital required to start a Persona Física / Trabajador Independiente in Costa Rica?
None. You can begin as a self-employed person or independent worker without any minimum capital. If you choose an Empresa Individual de Responsabilidad Limitada (E.I.R.L.) form, specific capital may be required depending on business type.

Does a Persona Física / Trabajador Independiente need to register for VAT (IVA)?
Only if your activity includes goods or services that are subject to VAT. Not all services are automatically subject. If you are required, you must collect VAT from your clients and remit it periodically.

How much are the standard monthly or annual contributions?
It depends on your declared income. The social security contribution for self-employed is calculated based on declared income; there is no fixed flat for all. Also the income tax depends on which bracket your net income falls in. As of 2025, incomes up to ~₡4,094,000 are exempt, above that taxed progressively to 25%.

Can a Persona Física hire employees?
Yes. If you hire employees, you must register as an employer with CCSS, make employer contributions, register payroll, and comply with labor laws. Your business then has additional obligations.

How long does it take to register as a Persona Física / Trabajador Independiente in Costa Rica?
It varies: in simple cases (clear documents, own name, basic services), maybe a few days to a couple of weeks. If you need permits, trade name registration, or a foreign status, it may take longer.

Can foreign nationals register as Persona Física / Trabajador Independiente in Costa Rica?
Yes, though you must have proper immigration status (residency permit or license to work). Some procedures require legal status. Also, bank accounts may have extra requirements.

Do Persona Física need a separate business bank account?
Not strictly always mandatory for many self-employed persons, but highly recommended for accounting clarity, separating personal vs business finances. Some clients, banks, or authorities may expect it.

What happens if I stop working as a Persona Física / Trabajador Independiente?
You should deregister or inform the tax authority (Dirección General de Tributación), stop filing returns for that activity, and possibly file a final tax return. Also notify CCSS and municipal license bodies. Keep records for the required period in case of an audit.

Are there any government incentives or reduced rates for new Persona Física / Trabajador Independiente?
Yes. Under recent reforms (Law 23.578), effective from January 2026, the income tax exemption threshold for self-employed workers will be raised (for example, incomes less than ₡6,244,000 per year will be exempt), with progressive rates thereafter. This is intended to reduce the tax burden for low-income self-employed people.

Can I use Deel as a Persona Física / Trabajador Independiente to get paid by international clients?
Yes. Deel allows independent contractors and freelancers in Costa Rica to receive payments from clients worldwide, in multiple currencies, with low fees and transparent exchange rates.

Does Deel generate compliant invoices for sole proprietors?
Absolutely. Deel automatically generates invoices that meet legal and tax requirements in Costa Rica and beyond, helping you stay compliant.

Can Deel help me with taxes as a sole proprietor in Costa Rica?
Yes. Deel provides downloadable tax reports and payment records you can use when filing returns. While Deel doesn’t replace your accountant, it simplifies your record-keeping and compliance.

Does Deel offer contracts for freelancers and sole proprietors?
Yes. Deel includes contract templates that are compliant with Costa Rican local laws, so you can work with clients safely and professionally.

Can I access benefits through Deel as a Persona Física / Trabajador Independiente?
Yes. Deel offers optional perks like health insurance, retirement savings plans, and other benefits that are usually only available to employees, giving freelancers more security.