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Costa Rica’s free-trade protections, tax treaties, and escrow options make cross-border contracting predictable and straightforward for CFOs. When it comes to finance, boring is better.
When “Boring” Means Lower Risk and Higher Confidence
Many CFOs assume that cross-border contracting is inherently complicated. There are new jurisdictions, unfamiliar tax codes, and concerns about data security. If the deal feels easy, that means something must be wrong…right?
But the best cross-border deals aren’t complicated. They’re boring, predictable, and safe.
There’s an advantage to working with nearshore companies in Costa Rica. Legal frameworks are already in place, such as:
- strong free-trade protection
- clear double-taxation treaties
- straightforward escrow options
Instead of wrestling with uncertainty and confusion, you get contracts that simply work.
Why Nearshore Deals Matter for CFOs
Of course, CFOs don’t just care about protections. They care about whether nearshoring makes day-to-day operations easier.
Nearshoring reduces costs but also enhances collaboration and talent. Many U.S. EdTech companies favor Costa Rica as a contracting location due to its advantages, such as:
- Proximity
Close time zones and cultural alignment make operations smoother than offshore options.
- Regulatory simplicity
U.S. partners often find Costa Rica’s trade and tax environment easier to navigate.
- Aligned CFO priorities
Fewer legal headaches, cleaner reporting, and lower compliance costs.
Costa Rica has had remarkable success in the last two decades in establishing and promoting an ecosystem of export-oriented tech companies. It is home to more than 250 U.S. companies that employ over 150,000 employees.
It’s a prime technology ecosystem, and it didn’t happen by chance. It’s built on strong legal and financial foundations. For CFOs, three protections stand out as deal-makers: free-trade agreements, double-taxation treaties, and escrow options.
Decoding the Big Three Protections (in Plain English)
- Free-Trade Protections
“If a U.S. company hires a Costa Rican company and something goes wrong, you can’t just take them to a U.S. court. And in Costa Rica, as a foreign company, you don’t really have standing. That’s why arbitration is the mechanism Edify uses. Organizations like AmCham [The American Chamber of Commerce] act as intermediaries. So if there’s a dispute, it doesn’t go through messy international courts—it goes through arbitration, which is faster and more predictable.”Why it matters: These agreements help CFOs plan costs more confidently, avoid surprise fees, and leverage Costa Rica’s agreements to make nearshore deals cheaper and smoother. You can forecast costs with confidence, knowing you won’t face hidden barriers that eat into margins.
- Double-Taxation Treaties
- Escrow Options
“All of our contracts lay this out up front. The MSAs and NDAs we sign include exactly how issues will be handled, including where arbitration would take place. Usually, that’s U.S.-based. So before anything goes wrong, everyone already knows the process. At first, clients can be a little apprehensive about trust. But because we’re transparent from the beginning—and we communicate a lot—that concern tends to fade pretty quickly.”Why it matters: Escrow options help CFOs reduce risk in deals. You can safely engage in new partnerships or projects without worrying about non-performance or disputes. Payments don’t move until deliverables are confirmed, making cash flow steadier and limiting exposure to bad-faith actors.
The “Boring” Advantage: Why Predictability Wins
When you combine these three protections together, boring and predictable becomes a competitive advantage.
The CFO wants contracts to be as anticlimactic as possible. Their job is to manage stability. So “boring” really is better, and contracts are repeatable, scalable, and low-friction.
As Jasson points out, the very things some clients worry about, like whether a nearshore firm might reuse IP, are actually strengths:
“Clients often worry that if we build something for them, we might reuse it for someone else. But their IP always comes first. The code, logic, and business-specific details stay entirely within their project. Our know-how is what transfers. It’s the pattern-recognition that comes from solving similar challenges before. It’s what enables us to deliver faster and more reliably.”
And Beals adds that continuity is another overlooked advantage:
“Even U.S. companies face this. Your developers could leave and take their knowledge to a competitor. The difference is that when you work with us, you get continuity, liability protections, and a company that’s structured around doing things the right way. Clients realize pretty quickly that they can trust us—not because of where we’re located, but because of how we operate.”
That’s the essence of “boring is better”: you get expertise, protections, and stability that scale without surprises. By leveraging Costa Rica’s built-in protections, you’re locking in predictability. That predictability is what makes growth sustainable.
Contracts That Work So You Don’t Have To Worry
Taken together, Costa Rica’s framework reduces risk and makes stability repeatable. Being able to replicate stability again and again is how companies grow with confidence.
Cross-border deals shouldn’t keep you up at night. In Costa Rica, the legal groundwork is already in place to make contracting straightforward. The smartest CFOs know that in international finance, boring is better. Edify continues to make sure those advantages carry through on your deals, so your contracts hold up under pressure and keep growth steady.
so you can make your next deal predictable, safe, and scalable.
Aditional resources:
Learn more about nearshore partnerships in the Edify article: Is Offshore Really Saving Your EdTech Company Money? Or Just Slowing You Down?FAQs on Nearshore Contracting for CFOs
Why is Costa Rica attractive for U.S. companies?
Costa Rica offers the trifecta CFOs care about most: proximity, regulatory clarity, and cultural alignment. Its educated, bilingual workforce and stable political environment reduce friction, while close time zones make collaboration straightforward.
How does nearshoring in Costa Rica affect costs and predictability?
You can expect cost savings compared to onshore work. But the bigger CFO advantage is predictability: clear tax treaties, free-trade protections, and escrow options mean fewer surprises, steadier cash flow, and contracts you can forecast with confidence.
Does nearshoring reduce operational friction for CFOs?
It does. Shared time zones and cultural affinity cut down on delays, miscommunication, and rework. That translates into smoother reporting cycles, fewer late-night calls, and more efficient use of internal resources.
What about compliance, IP ownership, and data security?
Costa Rica aligns closely with global standards for data protection. Combined with free-trade agreements, arbitration frameworks, and escrow, contracts can be structured to lock in ownership rights and reduce exposure. For CFOs, that means fewer gray areas and less time spent chasing down legal fixes.
How can I ensure a nearshore software partner delivers consistently?
Reliability is in the partner and their contracts. With the right clauses—termination, arbitration, transition plans—you get stability even if staff or vendors change. Costa Rica’s legal environment supports this repeatability, making performance less about personality and more about process.
Why would a CFO choose Costa Rica over cheaper offshore hubs?
Hourly rates may be higher than in Asia, but total cost of ownership is often lower. CFOs avoid hidden expenses tied to travel, turnover, and misaligned schedules. Boring Costa Rican deals often cost less over time because they’re stable, repeatable, and low-friction.