Nobody buys a home in the sun thinking about their estate. Yet it is one of the questions that matter most for a property abroad, because the day it arises, it is not you who deals with it but your family — from a distance, in another language and under another legal system. In Costa Rica, three things surprise almost everyone: there is no inheritance tax but the transfer is not free, without a will your parents may inherit alongside your spouse, and holding the property in a corporation does not avoid probate.
Here is how a property passes to heirs in Costa Rica, what it costs, how long it takes, and what is worth preparing at the time of purchase.
1. No inheritance tax… but not a free transfer
Costa Rica does not levy an inheritance or estate tax in the North American or European sense: no brackets, no exemptions, no rates by degree of kinship.
However, the allocation of real estate to the heirs — the adjudicación hereditaria — is subject to the 1.5% transfer tax under Law No. 6999, the same tax that applies to a sale. The law only exempts properties of very low value. On top of that come National Registry fees and the fees of the attorney-notary handling probate, commonly around 2% to 4% of the estate, plus any translations, apostilles and appraisals.
2. Without a will, the law picks your heirs — and not necessarily the ones you expect
When there is no will, Article 572 of the Costa Rican Civil Code places children, parents and the spouse together in the first order — or a common-law partner, under conditions including a stable relationship of at least three years. Only if there are none do grandparents, siblings, nephews and nieces, then aunts and uncles inherit.
Intestate probate is also the slowest: one to three years is commonly cited.
3. With a will: broad freedom, one real limit
Costa Rican law gives broad testamentary freedom: there is no forced heirship of the kind found in France or Spain. The main limit is set by Article 595 of the Civil Code: the testator must provide support for the people who depended on them — minor children, for example. Beyond that, you can leave your property as you see fit.
A foreign owner has two options:
| Costa Rican will | Will from your home country | |
|---|---|---|
| Form | Open will executed before a Costa Rican notary | Will drafted in your country |
| Validity in Costa Rica | Direct | Recognized, but only after apostille, translation and approval by a Costa Rican court |
| Typical probate time | 6 to 12 months | 9 to 18 months |
4. The procedure: before a notary or before a court
An estate can be settled before a notary when three conditions are met: no minor heirs, no heirs under legal guardianship, and agreement among all heirs. Otherwise — a disagreement, a minor heir — it goes before the civil court, which takes longer.
The main steps: appointment of an executor (albacea), publication of a notice in the Boletín Judicial so that creditors and any other heirs can come forward, declaration of heirs, payment of debts, distribution, then registration of the property in the heirs’ names at the National Registry. Your heirs do not need to travel to Costa Rica: a special apostilled power of attorney is enough for them to be represented.
| Situation | Commonly observed duration |
|---|---|
| Costa Rican will | 6 to 12 months |
| Foreign will | 9 to 18 months |
| No will | 1 to 3 years |
5. “With a corporation, there’s no probate”: a myth
You often read that buying through a Costa Rican corporation avoids probate. It does not. The property belongs to the corporation, but the shares of the corporation belong to you: they are part of your estate and must pass through probate too.
And transferring more than 50% of the shares of a company that owns real estate to an heir counts as an indirect transfer of the property, subject to the same 1.5% tax, including when it results from an inheritance. A corporation can simplify management — the property does not change owner at the Registry — but it removes neither the procedure nor the tax. We compare both ownership structures in Buying in Costa Rica: company or personal name?
6. And in your home country?
The Costa Rican side does not settle everything: your country of citizenship or residence may have its say too.
- United States: the federal estate tax applies to the worldwide assets of US citizens and residents, including a home in Costa Rica. The exemption is $15 million per person in 2026, so most estates owe nothing federally — but some states have their own estate or inheritance tax with much lower thresholds.
- Canada: no inheritance tax, but death triggers a “deemed disposition”: the unrealized capital gain on the Costa Rican property is taxed on the deceased’s final return.
- Europe: in France or Belgium, for example, inheritance tax applies to the worldwide estate of a resident, Costa Rican property included, with no treaty to coordinate the two countries.
On cross-border taxation more generally, see Double taxation in Costa Rica.
7. What is worth preparing when you buy
- Choose how you hold the property with succession in mind — personally, jointly, or through a corporation — not only the tax at purchase.
- Make a Costa Rican will limited to your Costa Rican assets, coordinated with your main will.
- Name an executor you trust, ideally someone who knows the country.
- Keep an up-to-date file your family knows about: title, cadastral plan, corporate charter and books if applicable, your attorney-notary’s contact details, accounts and contracts related to the property.
- Talk to your heirs. An estate abroad goes far more smoothly when those who will handle it know where to look.
Frequently asked questions
Will my spouse automatically inherit the house?
Not without a will: they will share it with your children and, where applicable, with your parents. If you want your spouse to receive the property, a will is essential. How the property is held — jointly, for instance — also matters: get advice at the time of purchase.
Will my heirs have to travel to Costa Rica?
No. They can be represented by a Costa Rican attorney-notary through a special apostilled power of attorney.
How much does probate cost in Costa Rica?
As an order of magnitude: the 1.5% transfer tax on the property’s value, registration fees, and attorney-notary fees commonly between 2% and 4% of the estate, plus translation and apostille costs. A Costa Rican will mainly shortens the process, and with it the side costs.
Is a US or Canadian will valid in Costa Rica?
Yes, it is recognized, but it must be apostilled, translated and approved by a Costa Rican court, which lengthens the process. Hence the value of a Costa Rican will covering only the assets located in the country.
