Opening a business to do electrical work

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  • #589794
    JILLIAN V.
    Member

    My husband and I and 2 kids will be living in the Tamarindo area from January until the end of the school year. My husband is a very skilled electrician and has been working in this field for 15 years. He was thinking that he could open a business and make some money on the side while we are in Costa Rica.

    From what I have read it seems he could start a business but would not actually be able to do the electrical work. Would he be able to do the work or would he have to hire someone to do the actual electrical work and he could only manage the workers?

    If he did choose to get a business license while we are there where would he go to do this in the Tamarindo area? We would like to get started on it if it is a lengthy process.

    Thank You

    #590622
    JASON HOLLAND
    Participant

    Great questions. Unfortunately, unless you are a permanent resident, which you can obtain after three years as a temporary resident, married to a Costa Rican, or the relative of the Costa Rican (even your own child born in CR), you are by law not allowed to work, even in your own business. If you have a business, you can take on a superior or manager role but can’t do actual labor.

    Do some expats skirt this law? Yes, plenty. But there are some big risks involved, like deportation.

    The other issue is that labor costs are much lower in CR, so you probably wouldn’t make the income you’re used to, even for skilled work. Plus, with workers you’ll have to pay part of their Social Security, worker’s comp insurance, and other

    You can start a business, even with a tourist visa. You’d probably have to go 45 minutes inland to Santa Cruz, which is kind of like the “county seat” of the area and where government offices are located. There you’d get a business license and register with the tax authority for income tax. That can be a process but it’s doable. You might consider hiring an accountant or attorney to help you with the process, especially if you don’t speak Spanish.

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