Selling a house, a plot of land or a villa in Costa Rica is not just about finding a buyer and signing at the notary’s office. As a seller, you need to anticipate a real-estate capital gains tax, the agency commission and a few subtleties that change everything depending on when you bought your property and your residency status. Here, with the figures to back it up, is what a seller actually pays in 2026.
Real-estate capital gains in Costa Rica: what are we talking about?
Real-estate capital gains tax (in Spanish, impuesto sobre las ganancias de capital) is the tax levied on the gain realized when a property is sold: the difference between the sale price and the acquisition price. It is therefore not a tax on the entire price, but rather on the profit you make from the transaction.
Costa Rica applies territorial taxation: what is taxed is income and gains of Costa Rican source. The sale of a property located in Costa Rica therefore falls under the Costa Rican tax authorities, regardless of your country of residence. This is a fundamental point to keep in mind, and one we return to below for French sellers.
The general rate: 15% on the gain
Since the Ley 9635 tax reform (Law to Strengthen Public Finances), which came into force on July 1, 2019, the general rate of the real-estate capital gains tax is 15%, applied to the net gain.
In practical terms, the calculation is done in two stages:
- You establish the gain = sale price − acquisition price (documented costs and improvements may, in some cases, be included in the calculation).
- You apply 15% to that gain.
If your property has increased in value, you are taxed on that increase. If it has not gained value, there is no gain, and therefore no capital gains tax. That is the basic logic, valid for the vast majority of transactions today.
Properties acquired before July 1, 2019: the 2.25% flat-rate option
The reform provided a transitional measure for long-standing owners. If your property was acquired before July 1, 2019, you benefit, on the first sale only made after that date, from a choice between two methods of taxation:
- the general regime: 15% on the gain;
- or a flat-rate option: 2.25% of the total sale price (not of the gain).
This flat-rate option is offered only once, for that first post-reform sale. It becomes particularly attractive when the property has appreciated significantly, because the gain — and therefore the 15% tax — can then exceed the 2.25% calculated on the total price.
Worked example: comparing the two options
- General regime (15% on the gain): 15% × $100,000 = $15,000.
- Flat-rate option (2.25% of the total price), if the property was acquired before July 2019: 2.25% × $400,000 = $9,000.
In this example, the 2.25% flat rate saves $6,000 compared with the general regime. But this is not always the case: it all depends on the size of the gain.
| Taxation method | Calculation base | Rate | Tax due (example) |
|---|---|---|---|
| General regime | Gain ($400,000 − $300,000 = $100,000) | 15% | $15,000 |
| Flat-rate option (property acquired before July 1, 2019, first sale) | Total sale price ($400,000) | 2.25% | $9,000 |
The practical rule: the larger the gain relative to the sale price, the more advantageous the 2.25% option. Conversely, if the property has gained little value, the general 15% regime on a small gain will often be cheaper. Always run both calculations before deciding.
The habitual-residence exemption
Good news for many sellers: the sale of the seller’s habitual residence (the vivienda habitual) is exempt from capital gains tax.
Be careful, however: this is a factual determination. It is not enough to declare that a home was your primary residence; you must also be able to document it (actual occupancy, supporting evidence, etc.). A holiday property, a rental investment or a property where you never really lived will not meet this criterion. If the habitual residence is at stake in your sale, build the supporting file in advance, with the help of your notary and a tax adviser.
Non-resident seller: the 2.5% withholding at source
When the seller is a non-resident in Costa Rica, a safeguard mechanism applies for the tax authorities: the buyer must withhold 2.5% of the sale price at source and remit it to the tax administration.
This 2.5% withholding works as an advance on the tax due. The non-resident seller then regularizes their situation according to the applicable regime (15% on the gain, or the flat-rate option if the conditions are met). It is therefore essential, on both the buyer’s and the seller’s side, that this withholding be properly planned for and carried out at closing to avoid any hold-up.
What the seller really pays in Costa Rica
Capital gains are only part of the exit budget. In Costa Rica, the allocation of costs follows a very specific logic that you need to factor into your net calculation:
- The seller pays the capital gains tax and the agency commission, generally in the region of 5 to 6% of the sale price.
- The buyer, for their part, covers the closing costs (notary, fees, registration).
In other words, to estimate what you will really be left with, start from the sale price, subtract the capital gains tax applicable to your situation, then the agency commission. It is this net amount, not the listed price, that should guide your decision to sell.
Are you a French tax resident? Beware of double taxation
A major point of caution for our clients: there is no double-taxation treaty between France and Costa Rica. In the absence of such an agreement, the same gain can, in theory, be captured by two tax administrations, without the double-taxation-relief mechanism that these treaties usually provide.
A French tax resident who sells a property in Costa Rica must therefore consult a tax adviser before closing, in order to analyze their personal situation on both sides of the Atlantic. Do not rely on a simple Costa Rican estimate: the French tax return must be anticipated with a professional.
Frequently asked questions
Does the capital gains tax apply to the sale price or to the gain?
The general 15% regime applies to the gain (sale price minus acquisition price), not to the total price. The only exception is the 2.25% flat-rate option, which is calculated on the total sale price, and is available only for properties acquired before July 1, 2019, on their first sale.
Can I still choose the 2.25% flat rate in 2026?
Yes, provided your property was acquired before July 1, 2019 and this is its first sale since the reform came into force. This option arises only once. Always compare the two calculations (15% on the gain versus 2.25% on the total price) before choosing.
Is the sale of my primary residence really exempt?
The sale of the seller’s habitual residence is exempt from capital gains tax. But this exemption rests on a factual determination: you must be able to demonstrate and document that the property was genuinely your habitual home. Prepare this supporting evidence in advance with your notary.
What happens if I sell as a non-resident?
The buyer is required to withhold 2.5% of the sale price at source and remit it to the tax authorities. This withholding is an advance on the capital gains tax; your situation is then regularized according to the applicable regime. Plan for this mechanism from the negotiation stage to make closing smoother.
This article is provided for general information and does not constitute personalized tax, legal or accounting advice. Costa Rican real-estate taxation evolves and its application depends on your particular situation; French tax residents, in particular, must take into account the absence of a double-taxation treaty between France and Costa Rica and consult a tax adviser before any sale. Always check the rates and rules in force with a qualified professional. Are you preparing a sale or a purchase in Guanacaste or on the Nicoya Peninsula? Discover our real estate for sale in Sámara or contact the Tendance Immo Latina team for French-speaking support from A to Z.
