You know the purchase price on the day you make the offer. The cost of ownership is often discovered in the first year — and in the tropics it is rarely what you imagined. Here is every line of a Costa Rican homeowner’s annual budget in 2026, with amounts, followed by two worked examples: a house with a pool, and a condo.
1. Taxes
Property tax: 0.25%
The real estate tax is 0.25% a year of the property’s registered value, paid to the municipality. The value must be declared at least every five years; otherwise the municipality can reassess it. We explain how it works in Property tax in Costa Rica.
The luxury home tax (impuesto solidario)
It only applies to properties whose construction value exceeds a threshold: 143 million colones in 2026, about $318,000 at the mid-September 2026 rate (≈ 450 colones to the dollar). Above it, the tax applies to the total value, land included, at a progressive rate:
| Fiscal value | Rate |
|---|---|
| up to 359 million colones | 0.25% |
| 359 to 720 million | 0.30% |
| 720 million to 1.081 billion | 0.35% |
| … up to over 2.162 billion | up to 0.55% |
It applies to Costa Ricans and foreigners alike, to primary and vacation homes — including rented ones — whether the property is held personally or through a corporation. It must be filed and paid by January 15.
If you buy through a corporation
A Costa Rican corporation pays the corporate entity tax each year by January 31. In 2026: 69,330 colones (≈ $154) for an inactive company — the case of a company that simply holds a house — and 115,550 to 231,100 colones (≈ $257 to $514) for an active company, depending on revenue. Non-payment brings interest and penalties, blocks certifications at the Registry and, after three unpaid periods, can lead to the company’s dissolution. Add a mandatory annual filing with the beneficial ownership registry. We compare both structures in Company or personal name.
2. Insurance
Around 0.2% to 0.3% of the insured value per year for a house, more with contents and liability. In a condo, the structure is normally covered by the association. See Home insurance in Costa Rica.
3. Maintenance: the line everyone underestimates
The tropical climate wears a house faster than in North America or Europe: sun, six months of heavy rain, humidity, salt air near the ocean. The common rule is to budget 1% to 2% of the property’s value per year for maintenance. What comes up most often:
- exterior painting, every 3 to 5 years;
- wood treatment, every year;
- air-conditioner replacement, every 8 to 12 years;
- roof upkeep and mold treatment.
Plus, where relevant, pool service ($50 to $120 a month) and landscaping ($80 to $300 a month).
4. Caretaking and management while you’re away
A house closed for months needs to be visited, aired and watched. For a property that is not rented, caretaking commonly costs $150 to $350 a month. If you rent, management is paid as a share of rental income: about 8% to 12% for long-term rentals; for short-term rentals, 20% to 30% in general, closer to 15% to 25% in Guanacaste’s premium markets. See Property management in Costa Rica.
5. Utilities
Electricity, water and internet depend mostly on air conditioning. Monthly benchmarks: electricity $120 to $450 for an occupied house (much more for a large air-conditioned villa), water $10 to $40, internet $40 to $80. For the day-to-day budget of living there, see Cost of living in Costa Rica.
6. HOA fees
For a condo or a house in a gated community: from $50 to $150 a month in a basic community to $250 to $550 in an upscale one, sometimes more. See Buying a condo in Costa Rica.
Two worked examples
A $400,000 house with a pool, held personally, not rented
Construction value below the luxury tax threshold, occupied a few months a year:
| Item | Per year |
|---|---|
| Property tax (0.25%) | $1,000 |
| Luxury home tax | $0 |
| Insurance | $800 to $1,200 |
| Maintenance (1% to 2%) | $4,000 to $8,000 |
| Pool | $600 to $1,440 |
| Landscaping | $960 to $3,600 |
| Caretaking | $1,800 to $4,200 |
| Utilities, at a minimum (reduced power while you’re away, water, internet) | $2,040 to $2,880 |
| Total | ≈ $11,000 to $22,000 |
That is 2.8% to 5.6% of the home’s value every year — the number to keep in mind before choosing between a house and a condo.
A $250,000 condo held through a corporation, not rented
| Item | Per year |
|---|---|
| Property tax (0.25%) | $625 |
| Corporate entity tax (inactive) | ≈ $154 |
| HOA fees ($150 to $300 a month) | $1,800 to $3,600 |
| Utilities, at a minimum | $2,040 to $2,880 |
| Total, excluding contents insurance and interior upkeep | ≈ $4,600 to $7,300 |
Frequently asked questions
Does the luxury home tax apply to land?
No. It applies to residential properties whose construction value exceeds the annual threshold. Raw land is not subject to it — it does pay property tax.
Do I need to be in Costa Rica to pay these taxes?
No. Property tax is paid to the municipality and the luxury home tax is filed online; most foreign owners hand these deadlines to their property manager or accountant.
Will these amounts go up?
The luxury tax threshold and brackets are updated every year, as is the base of the corporate entity tax. Maintenance and labor costs follow local prices. Review your budget once a year.
