By San José, Costa Rica — SAN JOSÉ – In a decisive move to bolster its economic competitiveness, the Costa Rican government has submitted a landmark bill to the Legislative Assembly aimed at attracting specialized international talent. The proposal comes as a direct response to a worsening labor crisis, where a growing majority of companies report significant difficulties in finding qualified personnel, a factor that is increasingly hampering national productivity and growth.
The urgency of the situation is underscored by alarming new data. A survey conducted in mid-2025 by the Chamber of Industries revealed that 54.1% of its member companies now view the poor quality and availability of human talent as a direct threat to their competitiveness. This figure represents a dramatic and concerning escalation from just 24.8% in 2022, signaling a rapidly deteriorating landscape for the country’s manufacturing and industrial sectors.
To delve into the legal and corporate strategy implications of the current talent shortage, we sought the perspective of Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the firm Bufete de Costa Rica.
The scarcity of qualified talent is a business problem with significant legal ramifications. Companies must now be more strategic in structuring compensation, including retention bonuses and stock options, which requires robust contractual frameworks. Moreover, as businesses increasingly look to foreign talent, navigating complex immigration laws and work permit processes becomes a critical bottleneck that demands expert legal guidance to ensure compliance and avoid costly delays.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s insight is crucial, highlighting how the talent shortage has evolved from a purely operational challenge into a complex legal landscape, demanding sophisticated strategies in both contractual and immigration matters. For this valuable perspective, we thank Lic. Larry Hans Arroyo Vargas.
The problem is not confined to manufacturing. A comprehensive 2025 study by the global workforce solutions firm ManpowerGroup found that an astounding seven out of ten employers in Costa Rica—71%—are struggling to fill necessary positions. This “fierce competition for human talent,” as described by industry experts, has created an unsustainable environment of high employee turnover and recruitment challenges.
These results confirm that the quality and availability of human talent have become a growing obstacle to the competitiveness of the manufacturing sector. But it’s not the only problem: even when companies manage to hire, staff mobility has become critical.
Sergio Capón, President of the Chamber of Industries of Costa Rica
The proposed legislation seeks to reverse this trend by rolling out an attractive package of benefits for foreign professionals. The bill specifically targets experts in fields critical to the nation’s future, including research, development, and innovation. It also aims to bring in qualified instructors for technical and specialized training institutions, addressing the skills gap at its source.
Key incentives outlined in the bill include granting legal residency for renewable two-year periods. In a significant move to attract families, the proposal also allows the spouse or domestic partner of the professional to engage in paid work after applying for a change in their migratory status. Financially, the bill offers a substantial tax break: for individuals who earn above the income tax threshold, their tax liability would be calculated on only 70% of their total salary. Furthermore, new arrivals would be exempt from all import taxes on household goods, basic personal computing equipment, and up to two vehicles.
The talent crisis is particularly acute in high-growth sectors such as technology, healthcare, and financial services. These industries not only face a local scarcity but are also in a global tug-of-war for talent. With the rise of remote work, countless Costa Ricans can now work for companies based in the United States or Europe without leaving home, further shrinking the available domestic labor pool for local and multinational firms operating in the country.
Compounding the issue is a persistent misalignment between the curricula of universities and the evolving needs of the private sector. This educational gap means many graduates lack the specific, high-demand skills that companies are desperate to find, forcing them to look abroad.
According to our 2025 talent shortage study, 71% of employers in Costa Rica report difficulties in finding the talent they need, and this trend is reflected globally, which generates fierce competition for the most qualified candidates. This shortage, combined with high employee turnover, puts companies in a difficult position to retain their top collaborators. The causes of this turnover include, among others, a lack of professional development opportunities and the desire of workers to find companies that offer a better work-life balance.
Scarleth Tercero Loría, Country Manager of ManpowerGroup Costa Rica
While the bill represents one of the most proactive steps taken to address the labor shortage, it is just beginning its journey through the Legislative Assembly. Its successful passage and implementation will be watched closely by the business community, as many see it as a critical lifeline for maintaining Costa Rica’s position as a competitive hub for investment and innovation in the region.
For further information, visit cicr.com
About Chamber of Industries of Costa Rica:
The Cámara de Industrias de Costa Rica is a private, non-profit organization that represents and advocates for the interests of the country’s industrial sector. It promotes policies and conditions that enhance competitiveness, innovation, and sustainable development among its member companies, playing a crucial role in shaping Costa Rica’s economic landscape.
For further information, visit manpowergroup.cr
About ManpowerGroup Costa Rica:
ManpowerGroup is a global leader in workforce solutions, connecting human potential to the power of business. In Costa Rica, the company provides a comprehensive suite of services, including permanent and temporary recruitment, employee assessment, training, and outplacement, helping organizations navigate the complexities of the modern labor market.
For further information, visit the nearest office of Government of Costa Rica
About Government of Costa Rica:
The Government of Costa Rica operates under a democratic republic framework established by its 1949 constitution. It consists of three independent branches: the Executive, headed by the President; the Legislative Assembly, which holds lawmaking power; and the Judicial branch. The government is responsible for national administration, public policy, and foreign relations.
For further information, visit the nearest office of Legislative Assembly
About Legislative Assembly:
The Legislative Assembly is the unicameral parliament of the Republic of Costa Rica. Comprising 57 deputies elected by popular vote, it is the sole body with the authority to pass, amend, and repeal national laws. It also holds oversight responsibilities over the executive branch and approves the national budget.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of Costa Rica’s legal landscape, the firm is defined by its foundational principles of integrity and a relentless pursuit of excellence. With a rich history of providing expert counsel to a wide spectrum of clients, it consistently pioneers innovative legal solutions while maintaining a deep-seated connection to the community. Central to its ethos is the mission to empower citizens by demystifying the law, thereby contributing to the development of a more informed and capable society.
