The listed price of a villa or a plot of land is never the final cost. In Costa Rica, a buyer should budget for closing costs of around 3.5 to 4% of the price, followed by moderate annual taxes. Here is the complete, itemized breakdown, updated for 2026, from a foreign buyer’s perspective.
First, some good news: Costa Rican real-estate taxation remains among the lightest in Latin America. The annual property tax is only 0.25%, and a foreigner buys with exactly the same rights as a national. But a few items often catch out buyers coming from France, Belgium, Switzerland or Québec — in particular the central role of the notary and the VAT on their fees.
1. Acquisition costs (paid by the buyer)
In Costa Rica, the notary is also a lawyer: a single person drafts the public deed (escritura pública), verifies the title and handles registration at the National Registry. By default, the law provides for these costs to be shared between buyer and seller; in practice, depending on the negotiation, it is most often the buyer who pays all of the closing costs. Here is how they break down:
| Item | Amount | Detail |
|---|---|---|
| Transfer tax (traspaso) | 1.5% | On the higher of the deed price and the registered fiscal value |
| Notary / lawyer fees | ~1.25 to 1.5% | Sliding scale set by the Colegio de Abogados, + 13% VAT on the fees |
| Registration fees + stamps | ~0.75 to 0.8% | National Registry, municipal, agrarian, education & culture and fiscal stamps… |
| Escrow account (escrow) | ~0.25% (min. ~$900) | SUGEF-registered agent (anti-money-laundering checks), often split 50/50 with the seller |
| Buyer total | ≈ 3.5 to 4% | Excluding in-depth due diligence and bank fees |
Worked example: a $450,000 villa
For a property listed at $450,000, expect roughly:
- Transfer tax (1.5%): $6,750
- Notary (~1.3%) + 13% VAT on the fees: ~$6,600
- Registration and stamps (~0.8%): ~$3,600
- Escrow (buyer’s share): ~$600 to $1,100
Total to budget for: roughly $16,000 to $18,000, or ~3.7% of the price, on top of the $450,000.
2. Who pays what: buyer or seller?
The split is negotiable, but the Costa Rican norm is clear:
- The buyer pays the closing costs (transfer, notary, registration, stamps, VAT).
- The seller pays the agency commission (~5 to 6%) and, where applicable, the capital gains tax.
- The escrow account is generally split equally.
3. The annual taxes to plan for once you own
Property tax: 0.25% per year
The impuesto sobre bienes inmuebles (Ley 7509) is only 0.25% of the value registered with the municipality — often lower than the market value. It is paid to the canton’s town hall, in one to four installments per year. On a property registered at $400,000, that represents about $1,000 per year. The owner must re-file a value declaration every 5 years.
The luxury home tax (impuesto solidario)
An additional tax targets high-end properties. In 2026, it kicks in when the value of the construction exceeds ~143 million colones (about $275,000 to $285,000). Once that threshold is crossed, the base becomes the total value (land + construction), with a progressive scale of 0.25% to 0.55%. It applies to everyone, regardless of the ownership structure (a company does not exempt you).
4. And on resale: the capital gains tax
Since the 2019 reform (Ley 9635), real-estate capital gains are taxed at 15% of the gain realized. Three points that matter for a buyer:
- Properties acquired before July 2019: the option, on the first sale, of a flat rate of 2.25% of the sale price instead of 15% on the gain.
- Primary residence: the sale of your habitual home is exempt (to be documented).
- Non-resident seller: the buyer must withhold 2.5% of the price at source.
5. Good to know for a foreign buyer
Two particularities deserve attention before buying from France, Belgium, Switzerland or Québec:
- No double-taxation treaty exists between France and Costa Rica (only an information-exchange agreement). Costa Rica applies territorial taxation (foreign-source income is generally not taxed there), but France may continue to tax a French tax resident on their worldwide income. Review your situation with a tax adviser before any change of residence.
- Titled property vs. beachfront concession: the first 200 meters of coastline fall under a concession regime, not full ownership. This is something to check without fail for any “toes-in-the-water” property — we devote a dedicated guide to it.
Frequently asked questions
Who pays the notary fees in Costa Rica?
By custom, the buyer. The notary (who is also a lawyer) charges fees of about 1.25 to 1.5% of the price, plus 13% VAT on those fees.
What is the total budget for purchase costs?
Plan for around 3.5 to 4% of the property price: transfer tax (1.5%), notary (~1.3% + VAT), registration and stamps (~0.8%), and escrow account (~0.25%).
Does a foreigner pay more tax than a Costa Rican?
No. A foreigner buys and holds titled property with exactly the same rights and the same taxation as a national (Article 19 of the Constitution). No residency, local partner or special permit is required.
Is the property tax high?
No, it is among the lowest in the region: 0.25% per year of the registered value. A luxury tax is added only above roughly $275,000 of construction value.
Disclaimer: this article is for informational purposes and does not constitute legal or tax advice. Costa Rican thresholds and rates are revised every year (and the TRIBU-CR tax platform was rolled out in 2026); the amounts above are current as of July 2026 and must be confirmed on a case-by-case basis by a Costa Rican notary-lawyer. Tendance Immo Latina supports you and connects you with the right professionals.
Considering buying in Costa Rica? Discover our properties in Sámara, Nosara and throughout Guanacaste, or contact our trilingual team.
What those costs apply to
- Houses and villas for sale in Sámara — with the real price range for the area.
- Land for sale in Sámara — where purchase costs weigh proportionally more.
