Costa Rica Encourages Telecommuting

How we work is changing as the world becomes increasingly connected through technology. One of the most notable shifts in recent years has been the rise of telecommuting or working from home. The pandemic has accelerated this trend, which has forced many companies to adopt remote work policies to keep their employees safe.

Costa Rica, a small Central American country known for its stunning natural beauty and eco-friendly tourism, has also embraced telecommuting to attract and retain skilled workers. This article will explore how Costa Rica encourages telecommuting and why this could be a win-win situation for employees and employers.

Benefits of Telecommuting for Employees

Telecommuting can have several benefits for employees, including:

  • Increased flexibility and autonomy: When employees can work from home, they have more control over their schedules and can better balance work and personal responsibilities.
  • Reduced stress and improved work-life balance: Commuting can be a significant source of stress for many people, and telecommuting eliminates this. Additionally, working from home can make it easier for employees to care for children or other family members and reduce the need for expensive childcare.
  • Cost savings: Telecommuting can save employees money on transportation, parking, and other expenses associated with commuting.

Benefits of Telecommuting for Employers

Telecommuting can also be beneficial for employers, including:

  • Increased productivity: Studies have shown that telecommuting employees tend to be more productive than their in-office counterparts, likely due to reduced distractions and increased autonomy.
  • Reduced absenteeism: When employees can work from home, they are less likely to miss work due to illness, family obligations, or other reasons.
  • Access to a broader pool of talent: Telecommuting allows employers to hire employees from outside their immediate geographic area, which can be especially beneficial for companies in rural or remote areas.

Costa Rica’s Efforts to Encourage Telecommuting

Costa Rica has recognized the benefits of telecommuting and is actively working to make it more accessible to its citizens. The country has implemented several policies and initiatives to encourage telecommuting, including:

  • The “Remote Work Law,” which provides legal recognition and protection for telecommuters
  • Government-led training programs to help employees develop the skills needed to work remotely
  • Tax incentives for companies that promote telecommuting

Additionally, Costa Rica’s high-speed internet infrastructure and relatively low cost of living make it an attractive destination for remote workers.

NOTE: President Carlos Alvarado has formally signed a work-from-home bill into law, which helps to standardize working from home as a choice. The new law sets the guidelines for the work-from-home approach, reinforcing Costa Rica’s aggressiveness to grow the economy and attract foreign direct investment.

Congress passed Bill No. 21.141 on August 27 to formalize the work-from-home arrangement in all of Costa Rica’s organizations, including the public and private sectors.

Many employees can remotely carry out every one of the assignments required by their boss without the inefficiency of a long commute, which can improve productivity.

Working remotely is an attractive option for organizations for many reasons. Moreover, the Costa Rican Investment Promotion Agency, CINDE, has confirmed that telecommuting is an excellent method to pull in work outside the San José metro area (GAM).

This law will undoubtedly strengthen Costa Rica’s investment climate under the modern work schemes that the fourth industrial revolution demands. Working from home supports the sustainable development of Costa Rica, positively impacting the environment and people’s quality of life, which also boost the country’s productivity.
Jorge Sequeira, Managing Director at CINDE

Multinationals in Costa Rica pushed this new law to have a legal system that gives assurance, adaptability, and arrangement with new work arrangements, all of which should improve Costa Rica’s competitiveness.

If this methodology is applied to half of the employees where possible, the San José metro area would see 24,000 fewer vehicles daily. This would alleviate traffic and reduce fuel demand by 48 million liters daily, preventing 28,000 tons of CO2 emissions.


Telecommuting is becoming an increasingly popular way of working, and Costa Rica is positioning itself as a leader in this field. The country’s efforts to encourage telecommuting can benefit employees and employers and may serve as a model for other countries looking to promote this way of working.


-Written by Glenn Tellier (Founder of CRIE and Grupo Gap).

[email protected]


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