Costa Rica Real Estate Closing Costs & Taxes: What Buyers Actually Pay

Quick answer: Buyers in Costa Rica should budget 3 to 5 percent of the purchase price in closing costs: about 1.5 percent transfer tax, roughly 0.8 percent in registry stamps, and 1 to 2 percent in legal and notary fees. Ongoing ownership is cheap — annual property tax is just 0.25 percent of registered value. Homes above the luxury threshold pay an extra 0.25 to 0.55 percent, and selling triggers a 15 percent capital gains tax on profit (primary residences generally exempt).

Nobody likes surprises at closing. Here is an honest, plain-English breakdown of what it actually costs to buy and own property in Costa Rica, so you can budget properly before you make an offer.

One-Time Closing Costs

Transfer tax — about 1.5 percent. When the property changes hands, the government charges a real estate transfer tax of roughly 1.5 percent of the registered value.

Registration stamps — roughly 0.8 percent. A set of stamps and registry fees (national registry, municipal, agrarian, and others) add up to a little under one percent.

Legal and notary fees — around 1 to 2 percent. In Costa Rica, notary fees are set on an official scale, commonly around 1.25 percent on the first portion of the price and a bit less above that. Your attorney handles both the legal work and the notarial transfer.

Added together, closing costs typically land somewhere between three and five percent of the purchase price. Who pays what is negotiable — sometimes it is split between buyer and seller — but buyers should plan to budget for it.

Escrow and Due Diligence

Expect a modest escrow fee (often a few hundred dollars) and your due-diligence costs. These are small relative to the purchase, and skipping them is the most expensive mistake a buyer can make.

Ongoing Costs of Ownership

Annual property tax — 0.25 percent. Costa Rica's property tax is just one quarter of one percent of the registered value per year, paid to the local municipality. On a 500,000 dollar registered value, that is about 1,250 dollars a year — dramatically lower than property taxes in most of the US and Canada.

Luxury home tax (the Solidarity Tax). Homes whose construction value exceeds an annually adjusted threshold (in recent years a little over 230,000 dollars of construction value) owe an additional progressive tax, ranging from about 0.25 to 0.55 percent. The threshold changes every year, so confirm the current figure with your attorney.

Corporation and HOA fees. If you hold the property in a corporation there are small annual taxes and filings. If you buy in a gated community or condo, factor in HOA or condo fees for security, landscaping, and shared amenities.

When You Sell: Capital Gains

Since 2019, Costa Rica applies a 15 percent capital gains tax on the profit from selling real estate. Your primary residence is generally exempt. Because the tax is on the gain, keeping good records of your purchase price and improvements matters.

A Word on the 13 Percent VAT

If you rent your property short-term to tourists, that income falls under tourism rules and a 13 percent value-added tax (IVA) applies, along with registration with the tourism board. I cover the rental side in detail in my article on vacation rental income.

The Bottom Line

Costa Rica is a low-carrying-cost place to own real estate — the annual property tax in particular is a fraction of what North Americans are used to. The numbers above are current guidance, but tax thresholds and rates do change, so always confirm the specifics with a Costa Rican attorney or accountant before you close.