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
These items are minor individually but add close to a percentage point of the price, and fall due at the same moment as the rest.
- 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
Owning property in Costa Rica is inexpensive in tax terms compared with North America or Europe. The annual property tax is 0.25% of the registered fiscal value, which is usually below market value. Only high-value homes also pay the solidarity tax, and property held in a corporation carries a separate annual charge.
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The fiscal value is generally lower than market value, as it's based on official appraisals that may be outdated.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)
An additional tax on high-value homes, established by Law 8683. The amounts are set by decree each year, so always confirm the current scale before budgeting.
Who pays it
The tax applies when the value of the construction and fixed installations exceeds the exempt amount. For the 2026 period that threshold is â‚¡143,000,000 (Executive Decree No. 45358-H).
The threshold is measured on the construction alone, but once it is exceeded the taxable base also includes the land, together with accessory areas and, in a condominium, the proportional share of common areas.
It is assessed per home, not by adding up every property in your name.
2026 Scales
| Taxable Value | Annual Rate |
|---|---|
| Up to â‚¡359,000,000 | 0.25% |
| â‚¡359,000,001 - â‚¡720,000,000 | 0.30% |
| â‚¡720,000,001 - â‚¡1,081,000,000 | 0.35% |
| â‚¡1,081,000,001 - â‚¡1,443,000,000 | 0.40% |
| â‚¡1,443,000,001 - â‚¡1,800,000,000 | 0.45% |
| â‚¡1,800,000,001 - â‚¡2,162,000,000 | 0.50% |
| Over â‚¡2,162,000,000 | 0.55% |
The scales are in colones because that is how the Treasury publishes them. Converted to dollars they move with the exchange rate, and the exempt amount is adjusted annually for inflation.
Corporation Tax
If the property is held in a corporation, there is an annual corporate entity tax. It is calculated as a percentage of the base salary, set at â‚¡462,200 for 2026:
- Inactive corporations, simplified regime, or gross income below 120 base salaries: 25% of the base salary (â‚¡115,550)
- Gross income between 120 and 280 base salaries: 30% of the base salary (â‚¡138,660)
- Gross income above 280 base salaries: 50% of the base salary (â‚¡231,100)
The deadline to pay without surcharges is 31 January each year.
Annual Tax Example
$350,000 House
| Tax | Calculation | Annual Amount |
|---|---|---|
| Property Tax | $350,000 × 0.25% | $875 |
| Solidarity Tax | Exempt if construction does not exceed â‚¡143,000,000 | $0 |
| Total | $875/year |
A house in this range usually falls outside the solidarity tax, because the threshold is measured on the construction value rather than the purchase price. If your property is close to the threshold, confirm the calculation with your accountant.
Maintenance Costs
Running a house in Costa Rica costs between $200 and $600 a month in basic utilities for a mid-sized home, before maintenance. The climate is what surprises people most: humidity and the rainy season accelerate wear, and frequent air conditioning can triple the electricity bill compared with a house that ventilates naturally.
Utilities
Electricity
Electricity is the most expensive and most variable utility, because it depends almost entirely on how much air conditioning you run.
- 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
Water is among the cheapest utilities, unless you depend on your own well, where the cost shifts to maintaining the pump.
- Average: $15-40/month
- Provider: AyA or municipal/community water systems
- Includes: Potable water and sewage (where available)
Internet and Phone
Fibre covers most populated areas; in remote ones, satellite costs double and delivers considerably less.
- 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
Regular maintenance is the most underestimated cost at purchase, because in the tropics vegetation and humidity never let up.
- 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
Annual preventive maintenance is what avoids the expensive repairs: painting and sealing on schedule costs a fraction of fixing moisture damage.
- 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 |