Law 8262 – SMEs in Costa Rica
Enacted in 2002, Law 8262 aims to promote the comprehensive development of small and medium-sized enterprises (SMEs) through support policies, access to financing, training, and streamlined administrative processes.
To qualify for the benefits provided under this law, businesses must meet at least two of the following requirements:
Be up to date with social security contributions to the Costa Rican Social Security Fund (CCSS).
Be in compliance with tax obligations to the Ministry of Finance.
Hold valid occupational risk insurance with the National Insurance Institute (INS).
SME registration is completed through the Costa Rican Business Information System (SIEC). This process is free and voluntary.
SME Qualification Criteria
Exceeding the following thresholds may result in a company being reclassified as medium or large, depending on specific values:
| Criterion | Small Business Range |
|---|---|
| Employees | 6 to 30 |
| Annual Sales | Up to ₡ 500 million |
| Total Assets | Up to ₡ 200 million |
Tax Exemptions for New Businesses
Corporate Tax (Law 9428)
Micro and small businesses registered with the Ministry of Economy, Industry and Commerce (MEIC), as well as small and medium-sized agricultural producers registered with the Ministry of Agriculture and Livestock (MAG), are eligible for exemption from the annual corporate tax. This tax is based on the base salary, which for 2025 is set at ₡462,200. Accordingly, the annual tax ranges from ₡69,330 to ₡231,100.
Income Tax (Law 7092 – Form D101)
For Legal Entities and Individuals
SMEs registered with MEIC or MAG, operating as commercial companies and within their first three years of operation, may apply for a progressive income tax exemption:
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Year 1: 100% exemption
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Year 2: 100% exemption
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Year 3: 75% exemption
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Year 4: 50% exemption
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Year 5 and beyond: Full tax obligation applies
This benefit encourages formalization and early-stage growth.
Additional Fiscal Benefits for Registered SMEs
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VAT exemption on commercial leases below ₡693,300 per month.
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90-day VAT deferral for credit-based sales.
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Reduced fees for health permits and registrations issued by the Ministry of Health.
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Adjusted Salary Base (BAS) applied for calculating employer contributions to health insurance during the first four years of operation
What Is the Financial Benefit of SME Status?
Annual Fiscal Savings Comparison
An SME employing one worker with a gross salary of ₡200,000 per month and generating a net profit of ₡10,000,000 per year can save up to ₡1,304,150 annually.
| Concept | SME | Non-SME | SME Savings |
|---|---|---|---|
| Income Tax | ₡0 | ₡794,650 | ₡794,650 |
| Social Security (1 employee) | ₡360,000 (≈15%) | ₡638,400 (≈26.6%) | ₡278,400 |
| Corporate Tax | ₡0 | ₡231,100 | ₡231,100 |
| Total Annual Cost | ₡360,000 | ₡1,664,150 | ₡1,304,150 |
Business responsibility involves full compliance with Costa Rican regulations. Just as importantly, it is essential to maximize all legal tax benefits. If your business qualifies as an SME, registering with the MEIC allows you to legally optimize profitability through tax exemptions.