Budgeting correctly is part of a smooth purchase. Below are the main costs you can expect when buying, owning and selling property in Costa Rica. Exact amounts depend on the price and the registered value of the property.
Closing costs when you buy
- Transfer tax: 1.5% of the sale price (or the fiscal value, if higher).
- Registry fees and stamps: roughly 0.5% to 0.6% in total.
- Notary fees: set by the official fee schedule of the Costa Rican Bar, decreasing as the price rises; often around 1% to 1.25%.
- Escrow and due diligence: usually a fixed fee.
In total, closing costs are typically around 3% to 4% of the price. Who pays what is negotiable and written into the purchase agreement; a common practice is to split them between buyer and seller.
Taxes while you own the property
- Municipal property tax: 0.25% per year of the registered value. Owners must update the declared value periodically (about every five years).
- Luxury home tax (impuesto solidario): applies only to homes whose construction value exceeds a threshold updated every year, with a progressive rate of about 0.25% to 0.55%.
- Company tax: if you own through a Costa Rican company, there is an annual corporate tax and filing obligations.
- Rental income: short-term rentals are subject to VAT (13%) and income tax; register with the tax authority (Hacienda) if you rent.
When you sell
Since the 2019 tax reform, capital gains on real estate are taxed at 15% of the gain. For properties acquired before the reform, the seller can usually choose to pay 2.25% of the sale price instead.
Want an estimate for a specific property? Contact us and we will prepare one with your lawyer.
This guide is general information, not legal or tax advice. Laws and amounts change: always confirm with an independent Costa Rican lawyer before you buy.
