One of the happiest surprises for buyers in Costa Rica is how low property taxes are compared to the US, Canada or Europe. But there are a few distinct taxes to understand so you budget correctly. Here’s the plain-English breakdown for 2026.
1. Annual Property Tax — 0.25%
The core tax is the Impuesto sobre Bienes Inmuebles, a flat 0.25% of the registered property value per year, paid to the local municipality. On a $300,000 home that’s about $750 a year — a fraction of what many North Americans are used to. You can usually pay it annually or quarterly, and paying the full year early sometimes earns a small discount.
2. The Luxury Home Tax (Impuesto Solidario)
Higher-end homes owe an additional Luxury Home Tax. It only kicks in when the construction (building) value exceeds a threshold set annually by the tax authority (roughly $240,000–$250,000 of construction value in recent years). If your home qualifies, the tax is progressive — commonly around 0.25% to 0.55% of the total property value. Land-only lots and lower-value homes are exempt.
3. Corporation Tax (if you hold in an S.A./SRL)
Many buyers hold property through a Costa Rican corporation. Active and inactive corporations owe a modest annual corporation tax (a few hundred dollars, scaled to the entity type). Factor this in if you use a company structure.
4. Transfer Tax (one-time, at purchase)
When you buy, expect a one-time property transfer tax of ~1.5% of the value, plus stamps and legal/notary fees — typically 3.5%–4% of the purchase price in total closing costs. This is a purchase cost, not an ongoing tax.
What Owners Actually Pay
For most retirees and vacation-home owners, annual holding costs are refreshingly light: the 0.25% base tax, possibly the luxury tax on higher-value homes, and a small corporation fee if applicable. Always confirm the property’s registered value (which drives the tax) and that prior taxes are paid current — your attorney checks this during due diligence.
Budgeting a purchase? Browse listings and contact our team — we’ll help you estimate the full cost of ownership before you buy.