A Smart Buyer’s Guide by Neocasa Real Estate

Thinking about buying property in Costa Rica? It’s an exciting move, but before you dive in, you need to understand the taxes and legal costs that come with it. These aren’t small add-ons, they’re key to budgeting your purchase and avoiding surprises later on. At Neocasa Real Estate, we help buyers from around the world make smart, confident decisions. Here’s everything you should know about the taxes involved in buying property in Costa Rica.

The Main Tax You’ll Pay at Closing

The biggest tax buyers face is the property transfer tax. It’s 1.5 percent of the property’s official value. This can be either the recorded purchase price or the value assigned by the government, whichever is higher. You’ll pay this tax at closing, and it’s required before the property can be registered in your name. If the government feels the reported price is too low, they may adjust the taxable amount based on their own valuation.

Other Mandatory Fees and Government Stamps

Besides the transfer tax, there are several smaller fees that are also part of the closing process:

• Municipal fee: 0.2 percent
• National Registry fee: 0.5 percent
• Bar Association stamp: around ₡20,000
• Agricultural stamp: 0.1 percent
• Fiscal stamp: ₡625 per ₡1,000 of value
• Filing fee: around ₡2,500

Altogether, these smaller items add about 0.8 percent to the total cost.

Annual Taxes You’ll Pay After You Own the Property

Once the property is in your name, there are two annual taxes you should plan for.

1. Property tax: This is a flat 0.25 percent of the registered value. It’s paid to the local municipality and goes toward public services and infrastructure.

2. Luxury home tax: If your property exceeds a certain value, currently around ₡133 million, you’ll also pay a luxury tax. It’s progressive, ranging from 0.25 percent to 0.55 percent depending on the property’s value.

If your property is held under a company name, you’ll also need to pay the annual corporate tax, which varies based on the activity and income of the company.

How Neocasa Real Estate Helps You Plan Ahead

Foreign buyers often feel overwhelmed by Costa Rica’s legal and tax systems, and that’s completely understandable. That’s why we don’t just sell you a property, we guide you through the entire process.

Here’s what our team can handle for you:

• A full breakdown of every tax and fee you’ll need to cover
• Help calculating your total closing costs, before you make an offer
• Strategies to structure your purchase in a tax-efficient way
• Coordination with trusted attorneys and notaries
• Ensuring your property is legally registered and free of tax issues

Other Costs to Keep in Mind

In addition to taxes, here are some common costs that buyers typically incur:

• Legal fees: Usually about 1.5 percent of the purchase price
• Title review and due diligence
• Appraisals, especially if you’re getting a loan
• Bank fees, including mortgage origination and insurance
• Home inspections, which are always recommended

Why It Pays to Work With Experts

Buying in another country is different, and small mistakes can turn into expensive problems. With the right guidance, you can:

• Avoid tax issues down the road
• Make smarter financial decisions
• Get accurate cost estimates before committing
• Stay fully compliant with Costa Rican regulations
• Skip delays, penalties, and surprises

Common Questions Buyers Ask Us

Who pays the closing taxes?
Typically, buyers and sellers split the transfer tax and legal fees 50/50, but this is negotiable. In many new developments, the buyer covers the full amount.

Are there any tax breaks?
There are tax exemptions for low-income families under specific government housing programs, but if you’re buying a regular home or investment property, you should expect to pay all applicable taxes.

Do foreigners pay more?
No, foreign buyers are treated the same as Costa Rican citizens when it comes to property taxes. You’ll have the same rights and the same obligations.

How does the government decide the property’s value?
Costa Rica uses several criteria including location, size, condition, and comparable market values. Both the Ministry of Finance and local municipalities maintain valuation tools.

Why Buyers Choose Neocasa Real Estate

We’ve helped hundreds of international clients buy property in Costa Rica with full transparency and confidence. Here’s what makes the difference:

• We explain everything clearly, upfront
• We tailor the process to your needs and goals
• We work with top legal and tax professionals
• We offer post-sale support for tax filings and compliance
• We know this market inside and out, and we protect your interests every step of the way

Final Thoughts: Plan for Taxes and Buy With Confidence

Buying real estate in Costa Rica is an incredible opportunity, but it’s not just about the list price. Taxes and legal fees can add up to around 3.5 to 4 percent of the total purchase, so it’s important to plan ahead.

At Neocasa Real Estate, we offer full-service support so you can invest without stress. We’ll help you understand the numbers, follow the rules, and complete your purchase with total peace of mind.

At a Glance: Taxes and Fees to Expect

• Transfer tax: 1.5 percent
• Government stamps and registry fees: around 0.8 percent
• Notary and legal fees: typically 1.5 percent
• Annual property tax: 0.25 percent
• Luxury tax: only if the property qualifies
• Corporate tax: only if the property is held in a company

Ready to move forward?
Talk to one of our trusted advisors at Neocasa Real Estate and get a clear picture of what your purchase will really cost. We’ll help you avoid pitfalls, simplify the process, and find the right property for your lifestyle and investment goals.