Costa Rica Buying Costs, Taxes and Residency Explained

One-off costs when you buy

The transfer tax is 1.5%, charged on the higher of the sale price or the registered fiscal value, according to PwC's Costa Rica tax summary. On top of that come a National Registry fee of 0.5%, documentary stamps of roughly 0.6%, and the notary's fee, which follows a sliding scale set by the bar association - 2% on the first 11 million colones of value, tapering to 1% above 33.5 million colones.

All in, closing costs typically total 3.5-4% of the price. Who pays is negotiable; in practice buyer and seller commonly split them equally. Escrow fees, a survey and a home inspection are sensible extras.

• Transfer tax: 1.5% of price or fiscal value, whichever is higher
• National Registry fee: 0.5%
• Documentary stamps: about 0.6%
• Notary fee: sliding scale from 2% down to 1%
• Typical total: 3.5-4%, often split between buyer and seller

What you pay each year

The annual property tax, collected by the municipality where the property sits, is 0.25% of the appraised registered value nationwide, per PwC. On a home registered at 300,000 US dollars that is 750 dollars a year.

Higher-value homes may also owe Costa Rica's solidarity tax (the so-called luxury home tax), which applies above a colon-denominated threshold that is updated periodically - check the current threshold with the Ministry of Finance (Hacienda) or your notary before assuming it does or does not apply to you.

Taxes when you rent out or sell

Rental income is taxed as real-estate capital income at 15%, with a flat 15% notional expense deduction rather than itemised costs, PwC notes. If you let a property, you are expected to register and file locally.

On sale, capital gains are generally taxed at 15%. For property acquired before the 2019 reform (Law 9635), sellers can instead opt to pay 2.25% of the gross sale price on the first sale of that asset. If the seller is not domiciled in Costa Rica, the buyer must withhold 2.5% of the price on account of the seller's tax.

• Rental income: 15% on income after a fixed 15% deduction
• Capital gains: 15%, or an optional 2.25% of gross price on a first sale under the 2019 transition rule
• Non-resident sellers: 2.5% withholding applied by the buyer

Residency: pensionado, rentista, inversionista

Buying property does not itself grant residency, but three temporary-residency categories matter to buyers. Pensionado requires a lifetime pension of at least 1,000 US dollars a month. Rentista requires proof of 2,500 dollars a month of stable income guaranteed for at least two years - or, commonly, a 60,000-dollar deposit with a Costa Rican bank. Both cover spouse and dependent children and can lead to permanent residency after three years.

Inversionista (investor) residency is available for a qualifying investment - real estate counts - of at least 150,000 US dollars under Law 9996, the 2021 law for attracting investors, rentistas and pensioners. Note that the law's package of tax incentives expired in July 2026, and thresholds and benefits are subject to change, so confirm the current rules with the immigration authority (Migracion) or a licensed lawyer before committing funds.

• Pensionado: 1,000 dollars a month lifetime pension
• Rentista: 2,500 dollars a month for two years, or a 60,000-dollar bank deposit
• Inversionista: 150,000-dollar qualifying investment under Law 9996; verify current status
• Temporary residency is renewable; permanent residency possible after three years

Budgeting it all together

For a 300,000-dollar purchase, expect roughly 10,500-12,000 dollars in closing costs, then about 750 dollars a year in property tax before utilities, insurance and any community fees. If rental income is part of the plan, model the 15% income tax and, on exit, the capital-gains rules above.

Rates and thresholds do change - the transfer tax and property tax have been stable, but residency figures and the luxury-tax threshold move - so rely on Hacienda, Migracion and your notary for the current numbers. Habio's Costa Rica buyer guides and listings can help you put real asking prices against these percentages.