One of the most reassuring things about buying property in Costa Rica is that foreigners have the same ownership rights as citizens. You can hold titled property in your own name, and the process is well-established. Still, before you buy, it pays to understand exactly what you’ll spend at closing and what you’ll owe each year. Here’s a clear breakdown for 2026.
Closing Costs: What to Budget
For a standard titled property purchase, plan for total closing costs of roughly 3.5% to 4.5% of the purchase price. These are typically split between buyer and seller by agreement, but buyers often cover most. The main components are:
- Transfer tax (Impuesto de Traspaso): ~1.5% of the registered value.
- Registry and documentary stamps: ~0.8%, paid to the National Registry and various stamp duties.
- Legal / notary fees: ~1.25%–1.5%. In Costa Rica, a notary is an attorney who draws up and registers the transfer deed.
- Escrow fee: a few hundred dollars; using a registered escrow service is strongly recommended for security and compliance.
Should You Buy in a Corporation?
Many buyers hold property through a Costa Rican corporation (Sociedad Anónima or S.R.L.). Benefits can include easier estate planning, privacy, and simpler resale (you transfer the shares). There is a small annual corporation tax and the need to keep the company in good standing. Your attorney can advise whether a corporation makes sense for your situation.
Annual Property Taxes
Costa Rica’s property taxes are famously low. Expect:
- Annual property tax: 0.25% of the registered value per year, paid to the local municipality. On a $300,000 home, that’s about $750 per year.
- Luxury home tax (Impuesto Solidario): applies only to homes with a construction value above roughly $230,000 (the threshold is adjusted yearly). It’s a modest progressive rate on the value of the home itself.
- HOA / community fees: in gated communities and condos, budget for monthly maintenance fees that vary by development.
Ongoing Ownership Costs
Beyond taxes, factor in homeowner’s insurance (affordable through the national insurer or private options), utilities, and — if you’ll rent the property — property management, typically 10%–20% of rental income for full-service management.
A Word on Due Diligence
Before any money changes hands, your attorney should verify clear title in the National Registry, confirm there are no liens or unpaid taxes, and ensure utilities and access are legally in place. Always move funds through a registered escrow account — never directly to a seller — to satisfy Costa Rica’s anti-money-laundering requirements and protect your purchase.
Planning Your Move?
If you’re buying to relocate, your property purchase can also support your residency application — the popular Investor (Inversionista) and Pensionado routes are well worth understanding before you buy.
We’ll Walk You Through Every Step
From your first offer to the final registry transfer, our team coordinates with trusted attorneys and escrow services so your purchase is secure and stress-free. Get in touch or message us on WhatsApp at +506 8415 6881 — we’re happy to estimate your total costs on a specific property.
This article is general information, not legal or tax advice. Always consult a licensed Costa Rican attorney for your specific transaction.