What it costs to buy property in Costa Rica: transfer tax, registry stamps, notary fees, escrow and VAT, typically 3.5% to 5.0% of the price, plus recurring holding costs.
When you buy property in a foreign country, understanding your complete financial breakdown is critical. In Costa Rica, the total costs of buying real estate typically range between 3.5% and 5.0% of the declared purchase price.
This guide breaks down the fees, taxes and legal expenses of a property purchase. At Tropical Realty Costa Rica, we aim to give clear financial guidance so foreign investors can go through a transaction with confidence. Rates and customs change and vary by transaction, so treat the figures as a guide and confirm them with your attorney.
Key takeaways for property buyers
- Standard closing range: overall closing expenses generally range between 3.5% and 5.0% of your declared purchase price.
- 50/50 fee split as the usual starting point: in traditional transactions, buyers and sellers split closing costs equally, unless they agree otherwise. Practice varies, so settle it in the purchase agreement.
- Low ongoing taxes: municipalities collect a low annual property tax at a flat rate of 0.25%.
Summary table: costs of buying real estate
This table breaks down standard expenses in a real estate transfer. In most traditional Costa Rican property deals, buyers and sellers share these fees equally:
| Expense item | Percentage / cost | Who typically pays | Description |
|---|---|---|---|
| Property transfer tax | 1.5% | Split 50/50 | Mandatory government tax on real estate transfers. |
| National Registry fees | ~0.5% | Split 50/50 | Legal stamps and documentation filing fees (timbres). |
| Notary / attorney fees | 1.0% to 1.25% | Split 50/50 | Regulated legal fees calculated on a sliding scale. |
| Due diligence fee | Escrow / fixed | Buyer | Title search, survey verification and utility checks. |
| VAT (IVA) on services | 13% (on fees) | Respective party | Applied strictly to professional fees (notary and escrow). |
A deeper look at purchase costs
Evaluating the costs of buying real estate means looking at three main legal and tax categories.
1. Government transfer tax and registry stamps (about 2.0%)
First, the national government charges a mandatory 1.5% property transfer tax (impuesto de traspaso). Authorities calculate this tax using the higher of the actual sales price and the fiscal value registered at the municipality. In addition, buyers pay roughly 0.5% for national registry stamps (timbres de registro), following guidelines from the Ministerio de Hacienda and the Registro Nacional de Costa Rica.
2. Legal and notary fees (1.0% to 1.25%)
Costa Rican law requires a licensed attorney registered as a public notary (notario público) to execute your deed (escritura de traspaso). The Costa Rican Bar Association (Colegio de Abogados) regulates these fees using a sliding scale:
- First 10 million CRC: about 2.0%
- From 10 to 15 million CRC: about 1.5%
- Amount above 15 million CRC: 1.0%
Note on luxury properties: for premium homes above $300,000, attorneys almost universally charge a flat 1.0% fee based on the sales price.
3. Escrow and wire fees
In addition to legal representation, foreign buyers should use a regulated escrow arrangement or an attorney’s trust account to handle payments safely. Escrow companies generally charge setup fees between $600 and $1,200, depending on the complexity of the transaction. Our escrow guide explains how to check a provider.
Recurring holding costs
Beyond your initial closing fees, plan for annual ownership expenses:
- Municipal property taxes (impuestos municipales): baseline property taxes are low. Local municipalities collect a flat 0.25% annual tax based on the property’s assessed value.
- The luxury home tax (impuesto solidario): for high-end residences, this tax applies only if the construction value alone exceeds a threshold, which we have published as roughly $260,000 (about 148 million colones), excluding land. The threshold is set by the authorities and adjusted regularly, and figures quoted differ, so confirm the current one. Rates range between 0.25% and 0.55%.
- Corporate tax (impuesto a las personas jurídicas): if you hold property within an inactive local corporation (S.A. or S.R.L.) for asset protection, expect to pay about $120 to $200 a year in corporate filings and taxes.
For the full list of running costs, see our guides to the costs of owning a property and to taxation in Costa Rica.
FAQ: costs of buying real estate in Costa Rica
Who pays the real estate agent commission in Costa Rica?
Are there capital gains taxes for foreigners selling property?
Can I buy property using a U.S. or Canadian LLC or an IRA?
Essential steps to calculate your buying costs
To protect your funds while managing the costs of buying real estate, follow these simple steps:
- Audit closing figures. First, request an itemised closing statement from your legal counsel outlining all government fees.
- Verify escrow accounts. Second, use a regulated escrow or an attorney’s trust account to process cross-border wires securely.
- Review corporate holdings. Finally, consult your attorney to decide whether individual ownership or a local entity (S.A. or S.R.L.) offers better tax protection.
Partner with Tropical Realty Costa Rica
Navigating property purchases takes expert local guidance. Browse our curated listings in Guanacaste real estate, explore coastal living in Santa Teresa, or search executive residences in San José, Escazú and Santa Ana.
You can also contact our team directly to receive a personalised cost breakdown for your property purchase.
More guides: beach vs city living, best rental markets and what to beware of when buying.
Percentages, fees, thresholds and customs are indicative, vary by transaction and change; confirm them with a Costa Rican attorney and accountant. This is general information, not legal, tax or financial advice.
