What taxes and fees do you pay on property in Costa Rica?

Overall, how much should you add on top of the purchase price?

How much are total buyer closing costs in Costa Rica?

In 2026, total buyer closing costs in Costa Rica usually come to about 3.5% to 4% of the purchase price nationally, according to brokers. On a $200,000 property (₡91,500,000), the line items below add up to roughly $7,700 to $8,500 (₡3,520,000 to ₡3,890,000, or €6,850 to €7,600), or 3.85% to 4.25%, because escrow is a flat fee that weighs more on a smaller price.

Here's how that adds up on $200,000: 1.5% transfer tax ($3,000), about 0.85% for registration and stamps ($1,700), about 1.25% notary fee ($2,500, or $2,825 if 13% IVA is added), and $500 to $1,000 for escrow.

Brokers working the Escazú and Santa Ana market quoted 3.5% to 5% in September 2026, and that higher end is a fair budget if you finance with a mortgage (a second deed to register), buy through a company or pay for extra due diligence, which on $200,000 means up to about $10,000 (₡4,580,000).

What pushes you to the low or high end: cash or mortgage, individual or company purchase, how clean the title is, whether the land touches the Maritime Zone, and how many independent checks you order.

What's the usual total % of fees and taxes over the purchase price?

For a standard $200,000 purchase by a foreign buyer in 2026, fees and taxes land at about 3.85% to 4.25% of the price, using the line items above.

Most deals fall between 3.5% and 5%: simple cash purchases at the bottom, deals with a mortgage or a company at the top. Older estimates of 5% to 7% usually counted extras or double-counted registry fees and stamps.

About 2.35% goes to the state (1.5% transfer tax plus about 0.85% registration and stamps). The rest, roughly 1.5% to 2%, pays the notary, its IVA and escrow.

What costs are always mandatory when buying?

Three costs are always there: the 1.5% transfer tax (Impuesto de Traspaso), registration fees and stamps (about 0.85% combined, of which 0.5% is the registry fee itself), and the notary's fee, because only a Costa Rican notary can sign and register the transfer deed.

Not mandatory but worth paying: a title study and lien search, a check of the survey plan (plano catastrado) against the real boundaries, an escrow account ($500 to $1,000), a translator if you don't read legal Spanish, and an appraisal if you want a second opinion on price.

Expect anti-money-laundering checks too: the notary will ask where your money comes from and for proof linking your bank transfers to it.

What taxes do you pay when you buy?

What is the property transfer tax rate in Costa Rica?

The transfer tax is 1.5% of the taxable value, which is normally the higher of the declared price and the property's registered fiscal value. Under-declaring the price doesn't really work and creates problems when you sell.

Foreigners pay the same 1.5% as Costa Ricans. There is no extra tax for foreign buyers.

There's no VAT on the property itself, but 13% IVA applies to services around it: notary and legal fees, agent commissions, and construction work bundled into a new-build price.

Stamps (timbres) and the registry fee are paid when the deed is recorded. The registry fee is ₡5 per ₡1,000 (0.5%), and the other stamps bring the total to about 0.85%. Don't add 0.5% and 0.85% together: the second includes the first.

Are there tax exemptions or reduced rates for first-time buyers?

No. Costa Rica has no first-time buyer exemption or reduced transfer tax, so you pay the standard 1.5% whether it's your first property or your fifth.

If you buy through a Costa Rican company (S.A. or S.R.L.) instead of in your own name, you add a yearly company tax: ₡69,330 (about $150) for an inactive holding company in 2026, and up to ₡231,100 (about $510) for active companies with high revenue. On top of that comes the yearly beneficial-owner declaration (RTBF), due on 30 April, with a minimum fine of 3 base salaries if you skip it.

New-build and resale purchases pay the same transfer tax. A new build may include IVA on construction or developer services, so ask your lawyer to list which parts of the price are taxed.

The only real reduction in recent years was the Law 9996 discount for new residents, and that window has closed (see below).

Can you still get the Law 9996 transfer-tax discount?

Probably not if you're starting now. Law 9996, published on 14 July 2021, gave people who obtained residency (pensionados, rentistas, investors) a set of perks, including a 20% reduction of the transfer tax. New applicants could opt in during the first 5 years only, and that window ended on 14 July 2026.

A September 2026 review of the law by the immigration firm CRIE found no general extension. People who were granted the benefits during the window keep them for 10 years from the grant date, with conditions.

The discount was never big money anyway: it's 20% of the 1.5% tax, not 20% of the price. On a $200,000 home, that's $600 off a $3,000 transfer tax.

What to do: if a seller, agent or residency firm still sells you on "Law 9996 tax breaks", ask for the written approval date of your benefits from immigration. Without it, budget the full 1.5%. Also note that the residency thresholds themselves didn't change: the investor route still asks for $150,000, according to the DGME checklist checked in September 2026.

Which professional fees will you pay as a buyer?

How much does a notary or conveyancing lawyer cost in Costa Rica?

Notary fees follow the bar association's tariff, which is a sliding percentage of the price. About 1.25% is a common figure in 2026, so around $2,500 on a $200,000 property (₡1,145,000, or €2,250), plus 13% IVA where it's charged.

The percentage drops on expensive properties, and some lawyers quote a flat fee for simple deals. Ask for the quote in writing, with the tariff, IVA and registration costs listed separately.

Translating legal documents typically costs $200 to $800 (₡91,500 to ₡365,000), plus $80 to $200 an hour if you want an interpreter at signing. These are market quotes, not fixed rates.

A tax advisor is worth it if you plan to rent the place or buy through a company. One-time setup advice typically costs $300 to $1,000, and monthly filing support $50 to $200, which matters because rental income tax and IVA returns are filed every month.

What's the typical real estate agent fee?

Agent commissions in Costa Rica usually run between 3% and 6% of the sale price, plus 13% IVA, so 3.39% to 6.78% all in. The seller normally pays it.

Who pays is set by the listing agreement and the sale contract, not by law. Check the contract before you sign so a commission doesn't end up on your side.

No law sets the rate. Exclusive listings, beach properties and small deals tend to sit at the top of the range, and you can push for less when two agents aren't involved.

How much do legal checks cost (title, liens, permits)?

Basic title and lien checks usually cost $300 to $900 (₡137,000 to ₡410,000). Fuller due diligence, covering the survey plan, municipal certificates, zoning and permits, can run $1,000 to $2,500 or more. The official registry fees inside that are small: a certified registry document costs ₡2,925.

An appraisal typically costs $300 to $700 (₡137,000 to ₡320,000) for a normal home, more for luxury or remote properties.

Never skip the title study at the Registro Nacional (folio real): it shows the owner, mortgages, liens, easements and lawsuits. Then match the plano catastrado with the real boundaries and access, and check the municipal tax and permits. Title alone doesn't prove you can build. On the coast, also ask for the concession file if any part sits in the Maritime Zone, and in Guanacaste for a written water availability letter from AyA or the local ASADA.

What hidden or surprise costs should you watch for right now?

What are the most common unexpected fees buyers discover in Costa Rica?

The usual surprises: condo fees in arrears or special assessments nobody mentioned, survey plans that don't match the land and need redoing, unpaid municipal bills or permit problems, the costs of a company you take over with the property, and the luxury home tax (Impuesto Solidario) if the construction value is above ₡143,000,000 in 2026 (about $315,000).

Unpaid municipal tax and condo fees can stay attached to the property, so your lawyer should get a municipal tax certificate and a statement from the condo administration before closing.

Scams usually start when buyers send a deposit before checking who owns the property at the Registro Nacional. Don't send money until title and the seller's identity are confirmed, and pay through escrow or the notary.

Costs sellers and agents rarely mention up front: survey corrections, condo special assessments, cleaning up a company's books and filings, permit issues, and extra stamps for a mortgage or trust deed.

Are there extra fees if the property has a tenant?

Buying with a tenant inside can add legal fees for taking over the lease or negotiating an exit, sorting out the deposit, and lawyer costs if the tenant contests or won't leave.

You take over the existing lease as the new landlord. Costa Rica's rental law (Ley 7527) sets a minimum residential lease of 3 years, whatever shorter term is written in the contract, and the lease renews for another 3 years unless the landlord gives notice at least 3 months before it ends.

So you can't usually end the lease right after buying, unless the tenant agrees or there are legal grounds for eviction, and eviction can take months.

A sitting tenant usually weakens the seller's hand on price, since fewer buyers want an occupied home. On the other hand, a tenant paying a fair rent can suit an investor. Note that in a dollar lease, the rent can't be raised during the contract under current law.

Which fees are negotiable, and who really pays what?

Which closing costs are negotiable in Costa Rica right now?

You can negotiate who pays the notary (often split 50/50, but not always), the escrow fee, and how the agent's commission is handled.

You can't negotiate the rates of the 1.5% transfer tax, the registry fee and the stamps. You can only negotiate who pays them.

On the negotiable items, a firm buyer can typically save 0.5% to 1% of the price, mostly by getting the seller to take a bigger share of the notary costs. It works best in slow markets or with a seller in a hurry.

Can I ask the seller to cover some closing costs in Costa Rica?

Yes, and it's fairly common when a property has been listed for a while, when you pay cash, or when the seller needs to close fast.

Sellers most often agree to take on a bigger share of the notary fees, settle condo arrears or special assessments, pay for title fixes or a new survey, and sometimes part of the transfer tax.

You have the most room to push with plenty of competing listings (as on parts of the Guanacaste coast, where condo supply has grown fast), months on the market without offers, or a quick closing with few conditions.

Is price bargaining common?

Yes. Sellers expect an offer below the asking price, and full-price first offers are rare.

Deals typically close about 6% to 12% below the first asking price, depending on condition, location and time on the market. Discounts can be bigger for properties with title problems, overdue repairs or sellers who need to sell. This is our estimate: Costa Rica publishes no official record matching sale prices with asking prices.

What monthly and yearly costs will you pay as an owner?

What's the realistic monthly owner budget in Costa Rica right now?

Excluding any mortgage, a modest home or condo typically costs $200 to $600 a month to run (₡91,500 to ₡275,000). A beach home or a condo with full amenities can easily pass $1,000.

That budget covers condo fees if you have them, electricity, water and internet, insurance, routine upkeep, and a reserve for repairs, which humidity makes more frequent. Mid-range condos in Escazú and Santa Ana charged about $200 to $475 a month in condo fees in September 2026, and amenity-heavy buildings more.

The range runs from about $150 a month for a simple inland house with no condo fee to $1,500 or more for a beachfront condo with a pool and heavy air-conditioning use. Insurance has no standard price: get a quote, because it depends on the insured value, the building and the risks.

Electricity varies most: air conditioning can multiply the bill on the hot coast, while homes in the cooler Central Valley often need none. And because the colón gained about 9% against the dollar over the past 12 months, bills and salaries paid in colones cost you more in dollars than a year ago.

What is the annual property tax amount in Costa Rica?

The municipal property tax is 0.25% a year of the value registered with the municipality. A property registered at $200,000 pays about $500 a year (₡230,000, or €450).

Since it depends on the registered value, modest homes can pay as little as $100 to $300 a year, and high-value properties $2,000 or more (₡915,000).

The registered value can be lower than the market value if the property hasn't been declared or reassessed for years. Owners must file a value declaration with the municipality at least every 5 years, and a sale usually updates the value to the declared price.

There's no general homeowner exemption. Homes whose construction value is above ₡143,000,000 in 2026 (about $315,000) also pay the luxury home tax (Impuesto Solidario), from 0.25% up to ₡359,000,000 of taxable value and rising in steps to 0.55% for the most expensive homes.

If you rent it out, what extra taxes and fees apply?

What tax rate applies to rental income in Costa Rica?

Individual landlords pay 15% on 85% of the gross rent, which works out to exactly 12.75% of what you collect. On a $1,200-a-month rental, that's $1,836 a year.

The 15% deduction is automatic: you don't prove any expenses, and you can't deduct more. To deduct actual costs (upkeep, management, depreciation), you'd have to switch to the business regime, which requires running it as a business, including at least one employee registered with the CCSS. Its rates are progressive: up to 25% of net income for an individual, and up to 30% for a company.

Under the standard regime, there's no range to plan for: it's 12.75% of gross rent, filed and paid every month.

Non-residents pay the same tax on Costa Rican rent. You need to register with Hacienda and file like a resident.

Long-term residential leases are exempt from IVA only up to 1.5 base salaries a month, which is ₡693,300 in 2026 (about $1,520). Above that, 13% IVA applies to the whole rent, not just the part above the limit. On a $2,000 rent, that's $260 a month, which you either charge the tenant or lose from your yield.

Do I pay tax on short-term rentals?

Yes, on two levels. The income is taxed like any rent (12.75% of gross under the standard regime), and short stays are subject to 13% IVA, which you charge to guests and pay to Hacienda yourself.

The rate isn't higher than for long-term rentals, but the paperwork is heavier: Hacienda registration, electronic invoices, monthly IVA returns, ICT registration under Ley 9742, and sometimes a municipal license depending on the canton.

Airbnb's own fee also comes off your revenue: 15.5% of the booking for hosts on the single host-only fee in October 2026.

Do Airbnb hosts in Costa Rica have to charge 13% IVA themselves?

Yes. Many owners still assume Airbnb collects the 13% IVA for them. It doesn't, at least not for the lodging itself. The IVA that platforms deal with concerns their own service fee. The IVA on the accommodation is the host's job.

On 18 March 2026, the Colegio de Contadores Públicos publicly reminded Airbnb, Vrbo and Booking hosts that a Hacienda resolution requires them to register for both income tax and IVA. In practice: register with Hacienda as a person or company, activate the activity "other short-stay lodging activities", issue electronic invoices, keep books, file IVA every month (even with zero bookings) and file income tax.

The good news: you can deduct the IVA you paid on expenses directly linked to the rental (repairs, services, equipment) if you have electronic invoices for them.

What to do before buying a rental: put 13% IVA, 12.75% income tax and the 15.5% platform fee into your numbers from day one. If a seller shows you "Airbnb income", ask whether it includes IVA. If it does, 13% of it was never theirs to keep. And ask whether the unit is registered with the ICT and Hacienda: income that was never invoiced is hard to verify and may hide unpaid tax.

If you sell later, what taxes and fees will you pay?

What's the total cost of selling as a % of price in Costa Rica?

Before any tax on your gain, selling usually costs about 4% to 7% of the price in 2026, mostly the agent's commission.

The low end is a sale with a 3% commission (3.39% with IVA) and your share of the notary. The high end is a 6% commission (6.78% with IVA) plus legal cleanup. Add capital gains tax on top if you made a profit.

The usual items: agent commission (3% to 6% plus 13% IVA), your share of notary and legal fees, the tax on your gain (15% of the profit), and any mortgage prepayment penalty. If you're not domiciled in Costa Rica, the buyer also withholds 2.5% of the price at closing.

The commission is the biggest item by far, usually more than half of your selling costs, so that's where to negotiate.

What capital gains tax applies when selling?

Capital gains tax is 15% of the profit. If you bought before 1 July 2019, the first sale can instead pay 2.25% of the sale price, if that's cheaper.

The sale of your habitual home (where you actually live) is exempt. A holiday home or a rental doesn't qualify, so check with a tax advisor before counting on it.

Non-resident sellers don't pay a higher rate, but if you're not domiciled in Costa Rica, the buyer must withhold 2.5% of the full price at closing and pay it to Hacienda (resolution MH-DGT-RES-0051-2025). Example: you bought at $200,000 and sell at $260,000. The tax on the $60,000 gain is $9,000, and the buyer withholds $6,500 at closing.

The gain is the sale price minus your purchase price and documented improvements and acquisition costs. Keep every invoice from the day you buy.

There's no inheritance tax in Costa Rica, but heirs still pay notary, registration and probate costs, and your home country may tax the estate.