Typically, the buyer and seller share the closing costs, which are calculated as a percentage of the property’s value; registration fees, notary and attorney fees, documentary stamps and transfer taxes will amount to no more than 6% of the property’s declared value. Though it used to be common practice to artificially lower the property’s declared value, this is a dangerous game that could cause future repercussions. 

Costa Rica collects property taxes, though they are very low compared to taxes in the United States. Typically, properties are taxed at 0.1% of the property value. 

Per Costa Rican law, real estate commissions may range from 3-10% of a property sale price. Unless the buyer agrees to split the costs, the seller is legally responsible for paying the entire real estate commission. 

The Costa Rican government does not collect capital gains tax. 

The luxury home tax is collected by the Finance Ministry and is not related to existing property tax. The tax applies to anyone with homes valued at more than 106 million CRC (about $212,000 at the current exchange rate). The tax is based on a sliding scale and depends on the property value. A home valued at $212,000 is taxed at .25% percent of the property value, and a $1.5 million dollar home is taxed at .40%.

In most cases, new construction runs $40-$100 per square foot ($430-$1,076 per square meter). Very simple construction starts around $30 per square foot ($315 per square meter), while luxury homes can climb to more than $200 per square foot ($2,152 per square meter).

A lawyer is an important aspect to purchasing real estate in Costa Rica. Find a lawyer who speaks your language and answers questions promptly; this will ensure the smoothest transaction possible. Your attorney will help you through several steps of your purchase, including a title search, contingency releases, distribution of funds, title transfer, and more. Lawyer and notary fees are assessed as percentages of the sale price, not the declared property value. Attorney fees amount to 1.5% of the first $2,000 and 1.25% of the remaining sale price.