Closing Costs
Closing costs in Costa Rica typically total between 3.5% and 4.5% of the purchase price. These costs are in addition to the property price and should be budgeted from the start.
Transfer Tax
The transfer tax is 1.5% of the declared value in the deed or the registered fiscal value, whichever is greater. This tax is withheld by the notary and paid to the Treasury.
- Payable at closing
- Calculated on declared value
- Not negotiable or reducible
Notary Fees
Notary fees are regulated by law but can vary:
- Official scale: 2% on the first $15,000, 1.5% on excess up to $30,000, 1.25% on the rest
- Common practice: Flat rate negotiation between 1% and 1.5%
- Typical minimum: $1,500 to $2,000 for smaller properties
Fees include deed preparation and National Registry inscription.
Attorney Fees
If you hire an independent attorney for due diligence (highly recommended):
- Typical rate: 1% to 1.5% of purchase price
- Minimum: $1,500 to $2,500
- Includes: Complete due diligence, contract review, legal advice
Other Closing Costs
- Fiscal and documentary stamps: Approximately 0.5%
- Registry inscription: Variable depending on property type
- Certifications and studies: $200-500
Practical Example
$200,000 Property
| Concept | Amount |
|---|---|
| Transfer tax (1.5%) | $3,000 |
| Notary fees (1.25%) | $2,500 |
| Attorney fees (1%) | $2,000 |
| Stamps and documents | $1,000 |
| Total closing costs | $8,500 (4.25%) |
$500,000 Property
| Concept | Amount |
|---|---|
| Transfer tax (1.5%) | $7,500 |
| Notary fees (1%) | $5,000 |
| Attorney fees (1%) | $5,000 |
| Stamps and documents | $1,500 |
| Total closing costs | $19,000 (3.8%) |
Property Taxes
Property Tax (Impuesto de Bienes Inmuebles)
This is the basic annual property tax:
- Rate: 0.25% of registered fiscal value
- Payment: Quarterly or annually with discount
- Administration: Local municipality
The fiscal value is generally lower than market value, as it's based on official appraisals that may be outdated.
Discounts and Surcharges
- Early payment (January): 10% discount
- Late payment: 2% monthly surcharge plus interest
Solidarity Tax (Luxury Tax)
Additional tax for high-value properties, established by Law 8683:
2024 Scales
| Property Value | Annual Rate |
|---|---|
| Up to ~$240,000 | Exempt |
| $240,000 - $500,000 | 0.25% |
| $500,000 - $1,000,000 | 0.30% |
| $1,000,000 - $1,500,000 | 0.35% |
| $1,500,000 - $2,000,000 | 0.45% |
| Over $2,000,000 | 0.55% |
Values are adjusted annually for inflation. Check updated values at the Treasury Ministry.
Value Calculation
The tax is calculated on the total value of all properties in your name or your corporation's, not per individual property. This can significantly affect you if you own multiple properties.
Corporation Tax
If the property is in a corporation's name:
- Annual corporation tax: ~$120/year (active corporations)
- Inactive corporations: Can opt for simplified regime
Annual Tax Example
$350,000 House
| Tax | Calculation | Annual Amount |
|---|---|---|
| Property Tax | $350,000 × 0.25% | $875 |
| Solidarity Tax | $110,000 × 0.25% | $275 |
| Total | $1,150/year |
Maintenance Costs
Utilities
Electricity
- Average medium house: $80-150/month
- With frequent air conditioning: $200-400/month
- Tiered rates: Higher consumption = higher rate per kWh
- Provider: ICE, CNFL, or local cooperatives
Water
- Average: $15-40/month
- Provider: AyA or municipal/community water systems
- Includes: Potable water and sewage (where available)
Internet and Phone
- Fiber optic internet: $50-80/month
- Satellite internet (remote areas): $100-200/month
- Prepaid cell: $10-30/month
- Main providers: Kolbi (ICE), Claro, Movistar
Gas (for cooking/heater)
- 25-pound tank: $25-30
- Average duration: 1-2 months
Property Maintenance
Regular Maintenance
- Landscaping: $50-150/month (depending on size)
- Pool: $100-200/month (professional maintenance)
- Cleaning: $50-100/visit
- Security/surveillance: $100-300/month
Annual Preventive Maintenance
- Exterior painting: Every 3-5 years in humid zones
- Wood treatment: Annual in coastal areas
- Roof inspection: Annual before rainy season
- Fumigation: Quarterly to semi-annually
Condo/HOA Fees
If your property is in a development or condominium:
- Typical range: $100-500/month
- Luxury condos: $500-1,500/month
- Includes: Common areas, security, amenities
Condo fees are mandatory and can increase annually. Check the history of increases and reserve fund before buying.
Property Insurance
Insurance is not mandatory but highly recommended:
- Basic insurance: 0.15-0.25% of insured value
- Comprehensive insurance: 0.3-0.5% of insured value
- Typical coverage: Fire, theft, natural damage
- Providers: INS (state), private insurers
Estimated Annual Budget
$300,000 House (no condo)
| Concept | Annual Estimate |
|---|---|
| Taxes | $1,000 |
| Electricity | $1,500 |
| Water | $300 |
| Internet/phone | $700 |
| Landscaping | $1,200 |
| General maintenance | $2,000 |
| Insurance | $600 |
| Estimated total | $7,300/year |