Costa Rica Approves Law for the Sale of Food and Drinks in Public Outdoor Spaces

Until now, it was illegal in Costa Rica for a restaurant, cafe, or bar to sell food and drinks on a big sidewalk, a plaza, a park, or a street. But this January, both the government and the Legislative Assembly approved a new law that gives business owners the opportunity to sell their products in public spaces, in order to reactivate the economy.

President Carlos Alvarado, along with some ministers, signed the law this past Tuesday, and now the local governments have six months to set up their own regulations regarding outdoor commerce. The law summons the municipalities to establish in that span the criteria, requirements, and conditions for the use of public spaces.

The bill was presented in 2020, in the middle of the first year of the Covid-19 pandemic, and the deputies who proposed it indicated then that among its objectives was to provide solutions to businesses affected by the restrictions and to have more livable cities. They and others noted that outdoor commerce was common in other countries.

A year and a half after the bill was introduced, all that is left is for local governments to do their part. That means that some places might have outdoor commerce regulated sooner than others, but in theory, at the end of 2022 business owners that want to sell their products in public spaces will be able to do so in the whole country.

Which businesses can or can’t use public spaces?

The law is limited to the sale of food and drinks. That is, only restaurants, bars, coffee shops, and similar commercial establishments can extend their operations to the public space. If your business license is for the sale of other products, your operation must be limited to the private property that has the license.

“Public space” includes sidewalks, parks, plazas, public roads, streets, or “other public spaces”, that are “adjacent to the respective commercial establishments”, according to the law. Meaning, you cannot ask for a permit to use a public space that is not next to the private property retreats determined by your business license.

The law is very clear in excluding mobile or stationery businesses, such as food trucks, from the permit. It says: “The outdoor trade authorization cannot be issued for mobile or stationary patents. Only those patent holders or licensees located in commercial establishments that are on private property may be authorized.”

Requirements and conditions for selling products in public spaces

When restaurant or bar owners request authorization for outdoor commerce, the municipalities must ensure that the use of said spaces does not compromise the right of free transit, the mobility of pedestrians, the infrastructure for people with disabilities, the traffic law, and the control of visual and noise pollution.

Given authorization for selling products in public spaces, businesses can only place tables, chairs, and other furniture that is not heavy. They can also carry out work to improve the space (adding lights or repairing the sidewalk), provided there is prior authorization with a technical basis by the responsible municipality.

Local governments will establish the criteria for the use of their public spaces. The law empowers them to define at least (but not limited to) the permitted hours of operation, the lightning standards in the protection of the urban landscape, the term for which they give permission, and the causes of rescission of the authorization.

What can businesses do in public spaces, and what can’t they do?

Patent holders of commercial establishments that sell food or drinks and that have authorization for outdoor commerce have the right to use public spaces to develop the activity for which the authorization was granted by the municipality. Authorities don’t have the right to disturb the use of public spaces without an administrative act that enables the cessation of the activity.

Owners also have the right to use the pertinent furniture and decoration material for the development of their commercial activity in a public space, under the conditions defined by the municipality. And they can carry out works to improve the space if the local government authorizes them to, according to the law.

An authorization for outdoor commerce doesn’t give patent holders the right to do anything else. The law provides a list of things they can’t do:

• The development of permanent physical and infrastructure works.
• The total closure of public roads or public spaces.
• Variations on the regular composition of public spaces.
• Undermine the freedom of movement and accessibility of people.
• Carry out activities other than those authorized in their patent.
• Generate any damage to public space.
• Use the public space for the development of the commercial activity at a different time from those authorized in the commercial patent and the respective authorization of outdoor commerce.

Cost of the authorization of outdoor commerce

At this moment, there’s no way of knowing how much it will cost to get authorization for outdoor commerce. It will likely vary from place to place since municipalities have the power to define the price.

The law only says that the amount that local governments charge for the right to use public spaces may not exceed 50% of the amount paid by the establishment for their commercial patent in a private property. That is, if you pay 100.000 colones for your monthly business patent, the outdoor authorization fee cannot exceed 50.000 colones.

According to the law, business owners that have authorization for outdoor commerce must pay the fee in advance. Authorities must have to take into account the dimensions of the public space intended for commercial use and the type of space that it is (a sidewalk, for example) to define the amount that must be paid for the authorization.