FAQ Immobilier Costa Rica

What are property tax in Costa Rica ?


In Costa Rica, you must pay a single tax of 0.25% of the reference amount entered the municipality "Avaluo". The "Avaluo" is generally well below the real price of the property or the price of the sale (the notary lawyer who carries out the sale does not have the obligation to declare in the register the amount of the sale, therefore the tax n is in no way directly correlated with the sale price). The "Avaluo" can only be revised by the municipality every 5 years if necessary. In the case of built properties, the "Avaluo" will be automatically increased, however, remaining well below the real commercial price. N.B: if you make a loan with a banking institution for the purchase of your property, the "Avaluo" will automatically be modified to the amount of the actual sale to credit insurances which are postponed. Likewise, if you own a house you should contribute to the "recollection de basura" tax which is the tax for garbage collectors of around $15 per month. So land investment is a very inexpensive and largely secure investment.




What are additional real estate taxes in Costa Rica ?


An important question when investing in real estate in Costa Rica is what can be gained by selling real estate in Costa Rica, as in all of Costa Rica there is no capital gains tax. Only a tax on the real estate transaction is payable during the sale or purchase of your property, not depending on the capital gain realized, but on the amount of the sale, of 1.5% generally shared between the seller and the buyer in equal parts.




What are the costs of buying real estate in Costa Rica?


As a general rule the fees of the lawyer notary carrying out the real estate transaction is 2% even if a minimum legal scale is decreasing according to the amount which can go up to 1% exists it is difficult to find lawyers notaries who follow the latter. However, these are costs which are also in principle shared equally with the two parties.
In principle, because these costs as well as the obligatory tax of 1.5% can enter into the negotiation.
So an approximate cost of 1.75% is most often practical. Or 2 + 1.5 = 3.5 split between the two parties, hence 1.75%.