Costa Rica: Costa Rica 2026: New Legislative Cycle and Structural Reform Agenda

Following the elections held on February 2 to democratically elect Costa Rica’s next President and the new Legislative Assembly (2026–2030), a new legislative cycle will begin in May 2026, marking a significant stage in Costa Rica’s institutional and economic evolution.

Beyond the political transition inherent in any democratic process, the real challenge lies in the new Legislative Assembly’s ability to advance structural reforms that strengthen fiscal stability, competitiveness, and international confidence.

In recent years, the country has achieved significant progress in fiscal discipline, transparency, and compliance with international standards, particularly in the areas of tax information exchange, anti-money laundering regulations, and the adoption of International Financial Reporting Standards, sustainability standards, and other professional frameworks benefiting the public accounting profession. However, important challenges remain that will require technical consensus and a long-term vision.

Among the priority issues are the sustainability of public finances, the efficiency of government spending, the modernization of the tax system, and the strengthening of tax administration through technological tools and more sophisticated control mechanisms. This modernization process has already begun through reforms within the Tax Administration under the initiative known as “TRIBU-CR.” In addition, transfer pricing regulation, international taxation, and compliance with BEPS standards will continue to be central pillars in ensuring legal certainty for investors and multinational groups.

Another fundamental challenge will be to continue promoting a regulatory environment that stimulates foreign direct investment, particularly in strategic sectors such as corporate services, technology, logistics, advanced manufacturing, and renewable energy. Coordination between fiscal policy, trade policy, and productive development will be essential to consolidate Costa Rica as a regional hub for professional services and international operations.

From an institutional perspective, governance, transparency, and regulatory quality will play a decisive role. Strengthening technical dialogue between the public sector, private sector, and the professional community will enable the development of sustainable reforms aligned with international standards.

The new legislative period, therefore, represents an opportunity to deepen the country’s economic modernization. Macroeconomic stability, regulatory compliance, and legal certainty will continue to be essential factors in maintaining the confidence of international markets and investors.

Costa Rica enters 2026 with a solid institutional foundation, but with the need for strategic decisions that consolidate its competitiveness in an increasingly demanding global environment. The reform agenda promoted by the new Legislative Assembly will be decisive for the country’s economic direction in the coming years.

Reference/Citation
(Fiscal Rule Law No. 9635 – Strengthening of Public Finances) | Ministry of Finance of Costa Rica – https://www.hacienda.go.cr

(BEPS – Base Erosion and Profit Shifting Project) | Organisation for Economic Co-operation and Development (OECD) – https://www.oecd.org/tax/beps/

(Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations) | Organisation for Economic Co-operation and Development (OECD) – https://www.oecd.org/tax/transfer-pricing/

(Costa Rica Legislative Assembly – Institutional Information) | Asamblea Legislativa de la República de Costa Rica – https://www.asamblea.go.cr

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