Authored by the expert who managed and guided the team behind the Costa Rica Property Pack
Everything you need to know before buying real estate is included in our Costa Rica Property Pack
Buying property in Costa Rica is simpler than in many other countries, but you still need to plan for extra costs beyond the purchase price.
We constantly update this blog post because tax rules, fees, and market conditions change regularly in Costa Rica.
This guide covers everything a foreign buyer needs to know about closing costs, taxes, and ongoing ownership expenses in Costa Rica in 2026.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Costa Rica.
Overall, how much extra should I budget on top of the purchase price in Costa Rica in 2026?
How much are total buyer closing costs in Costa Rica in 2026?
As of early 2026, total buyer closing costs in Costa Rica typically range from 4.5% to 6.5% of the purchase price, which means for a $200,000 property you would pay roughly $9,000 to $13,000 extra (about 4.5 to 6.5 million Costa Rican colones, or 8,300 to 12,000 euros).
If you keep expenses to the bare legal minimum with a simple cash transaction and no extras, you could potentially bring closing costs down to around 3% to 4% of the purchase price in Costa Rica, or roughly $6,000 to $8,000 on a $200,000 home (about 3 to 4 million colones, or 5,500 to 7,400 euros).
On the higher end, if you want comprehensive due diligence, escrow services, translations, corporate structure work, and mortgage registration, you should realistically budget up to 7% to 9% of the purchase price in Costa Rica, which translates to about $14,000 to $18,000 on a $200,000 property (roughly 7 to 9 million colones, or 13,000 to 16,600 euros).
The main factors that push your closing costs toward the low or high end in Costa Rica include whether you pay cash or finance, whether you buy through a corporation, the complexity of the title situation, coastal zone restrictions, and how much independent legal verification you want for your peace of mind.
What's the usual total % of fees and taxes over the purchase price in Costa Rica?
For most foreign buyers completing a standard residential purchase in Costa Rica in 2026, the usual total percentage of fees and taxes lands around 5% to 6% of the purchase price.
The realistic low-to-high range that covers most standard property transactions in Costa Rica is approximately 4% to 7%, with simpler deals at the bottom and more complex transactions involving financing or corporate structures at the top.
Of that total, roughly 2% to 2.5% typically goes to government taxes and mandatory stamps (the 1.5% transfer tax plus registry charges), while the remaining 2.5% to 4.5% covers professional service fees including notary, legal work, and any optional services like escrow or translation.
By the way, you will find much more detailed data in our property pack covering the real estate market in Costa Rica.
What costs are always mandatory when buying in Costa Rica in 2026?
As of early 2026, the mandatory costs when buying property in Costa Rica include the 1.5% property transfer tax (Impuesto de Traspaso), documentary stamps and registry fees (typically 0.5% to 0.8%), and notary public fees for drafting and registering the deed since Costa Rica requires a notary-attorney to complete any property transfer.
Beyond the mandatory costs, optional but highly recommended expenses for foreign buyers in Costa Rica include a thorough title study and lien search, independent property survey verification, an escrow account for funds protection, professional translation services if you do not read legal Spanish, and a property valuation if you want an external price check.
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What taxes do I pay when buying a property in Costa Rica in 2026?
What is the property transfer tax rate in Costa Rica in 2026?
As of early 2026, the property transfer tax rate in Costa Rica is 1.5% of the taxable basis, which is typically the higher of the declared purchase price or the property's registered fiscal value.
There are no extra transfer taxes specifically for foreigners buying residential property in Costa Rica, as foreign individuals enjoy the same transfer tax treatment as Costa Rican citizens for most purchases outside of restricted coastal zones.
Buyers generally do not pay VAT on the residential property itself in Costa Rica, though VAT at 13% may apply to related services such as legal fees, agent commissions, or any construction services bundled into a new-build purchase.
Stamp duty in Costa Rica appears as documentary stamps (timbres) and registry stamps, which are paid at closing when the deed is recorded, and these typically add another 0.5% to 0.8% on top of the transfer tax depending on the specific stamps required for your transaction.
Are there tax exemptions or reduced rates for first-time buyers in Costa Rica?
Costa Rica does not offer a broad, universal first-time buyer tax exemption or reduced transfer tax rate the way some other countries do, so most buyers pay the standard 1.5% transfer tax regardless of whether it is their first property purchase.
If you buy property through a Costa Rican corporation instead of as an individual, you will face additional ongoing costs including the annual Impuesto a las Personas Juridicas (corporate entity tax) of roughly $100 to $300 per year depending on your company's status, plus registered agent fees and annual compliance filings.
There is no blanket tax difference between buying a new-build property versus a resale property in Costa Rica, though new-build purchases may involve VAT on construction services or developer fees that resale transactions do not have, so you should ask your lawyer to itemize exactly which components are taxable.
Since Costa Rica does not have a formal first-time buyer program with documentation requirements, there are no specific conditions to meet, but buyers purchasing through special housing programs (if any exist at the time) should confirm eligibility directly with the relevant Costa Rican institution.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Costa Rica versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Which professional fees will I pay as a buyer in Costa Rica in 2026?
How much does a notary or conveyancing lawyer cost in Costa Rica in 2026?
As of early 2026, notary and conveyancing lawyer fees in Costa Rica typically range from 1% to 2% of the purchase price, which for a $200,000 property means roughly $2,000 to $4,000 (about 1 to 2 million Costa Rican colones, or 1,850 to 3,700 euros).
Notary and lawyer fees in Costa Rica are usually charged as a percentage of the property price following official tariff guidelines, though some attorneys may offer flat-fee arrangements for simpler transactions or negotiate on higher-value deals.
Translation and interpreter services for foreign buyers in Costa Rica typically cost between $200 and $800 for written legal document translation (roughly 100,000 to 400,000 colones, or 185 to 740 euros), plus $80 to $200 per hour if you need a live interpreter at signing meetings.
While not always required, hiring a tax advisor in Costa Rica is recommended if you plan to rent the property or buy through a corporation, with one-time structuring consultations typically costing $300 to $1,000 (150,000 to 500,000 colones, or 280 to 925 euros) and ongoing filing support running $50 to $200 per month.
We have a whole part dedicated to these topics in our our real estate pack about Costa Rica.
What's the typical real estate agent fee in Costa Rica in 2026?
As of early 2026, the typical real estate agent commission in Costa Rica ranges from 5% to 6% of the sale price, with 13% VAT applied on top of that commission, though this cost is usually paid by the seller rather than the buyer.
In most Costa Rican real estate transactions, the seller pays the agent commission, but this is ultimately determined by the sales contract and can be negotiated between parties, so buyers should always confirm who is responsible before signing anything.
The realistic low-to-high range for agent fees in Costa Rica spans from about 4% on the low end (for negotiated deals or dual agency situations) up to 7% or more on the high end for premium services, exclusive listings, or complex transactions involving foreign buyers.
How much do legal checks cost (title, liens, permits) in Costa Rica?
Legal checks including title search, lien verification, and permits review in Costa Rica typically cost between $300 and $900 for basic checks (roughly 150,000 to 450,000 colones, or 280 to 830 euros), while enhanced due diligence covering cadastral maps, municipal certifications, and zoning verification can run $1,000 to $2,500 or more.
Property valuation fees in Costa Rica typically range from $300 to $700 (about 150,000 to 350,000 colones, or 280 to 650 euros) for a standard residential appraisal, with higher fees for luxury homes, remote locations, or properties requiring specialized assessment.
The most critical legal check that should never be skipped in Costa Rica is the comprehensive title study through the Registro Nacional, as this confirms the seller's ownership rights and reveals any mortgages, liens, easements, or legal claims that could affect your purchase.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Costa Rica.
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What hidden or surprise costs should I watch for in Costa Rica right now?
What are the most common unexpected fees buyers discover in Costa Rica?
The most common unexpected fees buyers discover in Costa Rica include condo HOA arrears or special assessments the seller forgot to mention, boundary or cadastral mismatches requiring a new survey, municipal issues like unpaid utility bills or permit problems, corporate compliance costs if you inherit a company structure, and the luxury home tax (Impuesto Solidario) if the construction value exceeds the 2026 threshold of 143 million colones (about $290,000).
Yes, unpaid property taxes, municipal debts, or liens can transfer with the property in Costa Rica, which is why your attorney should obtain municipal tax certifications and verify there are no outstanding obligations before closing.
Scams involving fake listings or fraudulent fees do occur in Costa Rica, typically when buyers send deposits before verifying the seller's ownership through the Registro Nacional, so you should never transfer money without confirmed title, verified seller identity, and a controlled escrow or notary-managed payment process.
Fees that are usually not disclosed upfront by sellers or agents in Costa Rica include survey correction costs, condo special assessments, corporate restructuring expenses if the property is held in a company, municipal permit issues, and extra stamps triggered by mortgages, trusts, or complex ownership structures.
In our property pack covering the property buying process in Costa Rica, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Costa Rica?
If you buy a tenanted property in Costa Rica, you may face extra costs including legal fees for lease assignment or termination agreements (typically $200 to $500, or 100,000 to 250,000 colones), deposit reconciliations, and potentially attorney fees if the tenant disputes the transition or refuses to vacate.
When you purchase a tenanted property in Costa Rica, you inherit the existing lease as the new landlord, meaning you must honor the lease terms until expiration and respect the tenant's rights under Costa Rican rental law, including proper notice periods for any changes.
Terminating an existing lease immediately after purchase is generally not possible in Costa Rica unless the lease specifically allows early termination, the tenant agrees, or you have legal grounds for eviction, as Costa Rican law strongly protects tenant rights and eviction processes can take months.
A sitting tenant typically affects the property's market value in Costa Rica by reducing buyer interest and negotiating leverage, often resulting in a 5% to 15% discount compared to a vacant property, though an established rental income stream can also be attractive to investors seeking immediate cash flow.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Costa Rica.
We have made this infographic to give you a quick and clear snapshot of the property market in Costa Rica. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which fees are negotiable, and who really pays what in Costa Rica?
Which closing costs are negotiable in Costa Rica right now?
The closing costs that are usually negotiable in Costa Rica include who pays what share of notary and legal fees (often split 50/50 but flexible), escrow service fees, and how agent commissions are allocated between buyer and seller.
The closing costs that are fixed by law and cannot be negotiated in Costa Rica include the 1.5% property transfer tax and the mandatory documentary stamps and registry fees required to record the deed in the Registro Nacional.
On negotiable fees like notary costs and fee-splitting arrangements, buyers in Costa Rica can typically achieve savings of 0.5% to 1% of the purchase price by negotiating firmly, especially in slower markets or when the seller is motivated to close quickly.
Can I ask the seller to cover some closing costs in Costa Rica?
Yes, asking the seller to cover some closing costs is relatively common in Costa Rica, especially when a property has been on the market for a while, the buyer is paying cash, or the seller is highly motivated to close the deal.
The specific closing costs sellers are most commonly willing to cover in Costa Rica include their share of notary fees, HOA arrears or special assessments, any required title corrections or boundary survey costs, and occasionally a portion of the transfer tax in slower markets.
Sellers in Costa Rica are more likely to accept covering closing costs when the real estate market is soft with lots of inventory, when the property has been listed for several months without offers, or when the buyer offers a quick closing with minimal contingencies.
Is price bargaining common in Costa Rica in 2026?
As of early 2026, price bargaining is very common in Costa Rica's residential property market, and sellers generally expect some negotiation rather than receiving full asking price on the first offer.
Buyers in Costa Rica typically negotiate 5% to 12% below the asking price depending on property condition, location desirability, and how long the listing has been on the market, with larger discounts possible for properties with title issues, deferred maintenance, or motivated sellers.
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What monthly, quarterly or annual costs will I pay as an owner in Costa Rica?
What's the realistic monthly owner budget in Costa Rica right now?
A realistic monthly owner budget in Costa Rica (excluding any mortgage) typically ranges from $200 to $600 for a modest home or condo (roughly 100,000 to 300,000 colones, or 185 to 555 euros), though luxury properties or beachfront homes with full-service HOAs can easily reach $1,000 or more per month.
The main recurring expense categories that make up this monthly budget in Costa Rica include HOA or condo fees (if applicable), utilities like electricity, water, and internet, property insurance, routine maintenance, and setting aside reserves for repairs in the humid tropical climate.
The realistic low-to-high range for monthly owner costs in Costa Rica spans from about $150 per month for a simple home without HOA in an inland area (around 75,000 colones or 140 euros) up to $1,500 or more for a beachfront condo with premium amenities and high electricity use for air conditioning (roughly 750,000 colones or 1,400 euros).
The monthly cost that tends to vary the most in Costa Rica is electricity, because air conditioning use can multiply your electric bill significantly in hot coastal areas, while homes in cooler highland zones like the Central Valley may use almost no A/C and pay much less.
You can see how this budget affect your gross and rental yields in Costa Rica here.
What is the annual property tax amount in Costa Rica in 2026?
As of early 2026, the annual property tax in Costa Rica is 0.25% of the property's registered municipal value, so a property with a registered value of $200,000 would pay approximately $500 per year (around 250,000 colones or 460 euros).
The realistic low-to-high range for annual property taxes in Costa Rica depends heavily on the registered value, with modest homes paying as little as $100 to $300 per year (50,000 to 150,000 colones) and high-value properties potentially paying $2,000 or more (over 1 million colones or 1,850 euros).
Property tax in Costa Rica is calculated as a flat 0.25% of the property's declared or appraised value registered with the local municipality, which may be lower than the actual market value depending on when the property was last assessed or declared.
Certain exemptions or reductions may be available in Costa Rica for specific situations such as properties used for social housing programs, but there is no general homeowner exemption, and high-value homes exceeding 143 million colones (about $290,000) in construction value face an additional luxury tax (Impuesto Solidario) with progressive rates.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Costa Rica. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
If I rent it out, what extra taxes and fees apply in Costa Rica in 2026?
What tax rate applies to rental income in Costa Rica in 2026?
As of early 2026, rental income from property in Costa Rica is generally taxed at 15% on 85% of gross rental receipts under the simplified capital income regime, resulting in an effective tax rate of about 12.75% for most individual landlords.
Yes, landlords in Costa Rica can deduct expenses from rental income taxes, with the simplified regime allowing an automatic 15% deduction from gross income, while those who choose the traditional business regime can deduct actual documented expenses like maintenance, insurance, property management, and depreciation.
The realistic effective tax rate after deductions for typical landlords in Costa Rica ranges from about 10% to 15% of gross rental income under the simplified approach, though landlords with high documented expenses using the traditional regime may achieve lower effective rates depending on their cost structure.
Foreign property owners who are non-residents pay the same 15% rental income tax rate as residents in Costa Rica, though they must register with the tax authority (Ministerio de Hacienda) and file the required returns, with the tax calculated on income sourced within Costa Rica.
Do I pay tax on short-term rentals in Costa Rica in 2026?
As of early 2026, yes, short-term rental income in Costa Rica is taxable and commonly triggers VAT obligations when operating through platforms like Airbnb, with the platform often collecting and remitting the 13% VAT on behalf of hosts under Costa Rica's digital services tax framework.
Short-term rental income is not fundamentally taxed at a different rate than long-term rental income in Costa Rica, but short-term rentals may involve more complex compliance including VAT collection, municipal tourism permits, and potentially being classified as a business activity subject to higher tax rates if operated at scale.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Costa Rica.
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If I sell later, what taxes and fees will I pay in Costa Rica in 2026?
What's the total cost of selling as a % of price in Costa Rica in 2026?
As of early 2026, the total cost of selling a property in Costa Rica typically ranges from 7% to 10% of the sale price, covering all seller-side expenses from agent commissions to potential capital gains tax.
The realistic low-to-high percentage range for total selling costs in Costa Rica spans from about 6% for a straightforward sale with negotiated commissions up to 12% or more if you face full capital gains tax, need legal cleanup work, or pay premium agent fees.
The specific cost categories that typically make up the seller's total in Costa Rica include real estate agent commission (usually 5% to 6% plus 13% VAT), legal and notary fees for your share of closing, potential capital gains tax (15% of profit or 2.5% withholding for nonresidents), and any mortgage prepayment penalties if applicable.
The single largest contributor to selling expenses in Costa Rica is usually the real estate agent commission, which at 5% to 6% of the sale price plus VAT can easily represent half or more of your total selling costs.
What capital gains tax applies when selling in Costa Rica in 2026?
As of early 2026, capital gains tax in Costa Rica is generally 15% of the profit from selling property, though sellers of assets acquired before July 2019 may choose to pay a flat 2.25% of the sale price instead if that works out lower.
The main exemption to capital gains tax in Costa Rica is for your primary residence, meaning if you sell the home where you have lived for at least 183 days per year, you owe no capital gains tax regardless of how much profit you make.
Foreign nonresident sellers do not pay a higher capital gains rate, but they face a mandatory 2.5% withholding on the total sale price that the buyer must remit to the tax authority at closing, which acts as an advance payment of the seller's tax obligation.
Capital gains in Costa Rica are calculated as the difference between your original purchase price (plus documented improvements and inflation adjustments) and the sale price, with the resulting profit subject to the 15% tax unless you qualify for exemptions or the pre-2019 acquisition alternative.
We made this infographic to show you how property prices in Costa Rica compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Costa Rica, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Procuraduria General de la Republica (PGR) | Costa Rica's official legal database publishing binding law texts. | We used it to anchor the legal basis of the 1.5% property transfer tax. We cross-checked practitioner summaries against the official law definitions. |
| Asamblea Legislativa de Costa Rica | The Legislative Assembly's digital library of Costa Rican laws. | We used it to confirm the annual 0.25% municipal property tax framework. We treated Ley 7509 as the legal foundation for property tax calculations. |
| Ministerio de Hacienda | Costa Rica's official tax authority setting rates and compliance rules. | We used it for the 2026 luxury tax threshold, rental income guidance, and corporate tax requirements. We relied on official PDFs over third-party summaries. |
| Colegio de Abogados de Costa Rica | The official bar association setting minimum attorney and notary fees. | We used the official fee tariff to ground notary cost estimates. We cross-referenced it with the INVU-hosted copy for consistency. |
| BDO Costa Rica | A major international tax firm with precise compliance guidance. | We used their 2025-2026 updates on withholding rules and capital gains. We treated their guidance as a professional cross-check on official sources. |
| BDO Global | Global tax reference focusing on cross-border edge cases. | We used it to clarify nonresident capital gains compliance. We relied on it specifically for the foreign seller withholding mechanics. |
| PwC Costa Rica Tax Summary | A respected global accounting firm's country tax overview. | We used it to verify rental income rates and property tax structures. We cross-checked their figures against official Hacienda publications. |
| CVFirm Closing Cost Calculator | A transparent calculator from a practicing Costa Rica law firm. | We used it to translate legal rules into realistic closing cost ranges. We sanity-checked totals against statutory transfer tax and tariff logic. |
| Living Costa Rica by American European | An established real estate group with local market expertise. | We used their commission data to estimate agent fee ranges. We treated their market insights as practitioner validation of our figures. |
| NATIVU Real Estate Blog | A local real estate company explaining Costa Rican market practices. | We used it to confirm that sellers typically pay agent commissions. We cross-referenced their guidance on fee negotiation practices. |
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