Costa Rica Real Estate Taxes: What Foreign Buyers Need to Know

Most foreign buyers researching Costa Rica focus on location, price, and legal title. Taxes come up later, usually when someone sends them a closing statement with a number they were not expecting.

This article breaks down every real estate-related tax you will encounter as a foreign buyer in Costa Rica: when you pay it, how much it costs, and what most people miss.

You Are Treated the Same as a Costa Rican Citizen for Taxes

Foreign buyers do not face any special tax penalties in Costa Rica. The law treats foreign and national buyers equally when it comes to property ownership. What trips people up is not the tax rate. It is not knowing which taxes exist in the first place.

Tax 1: The Property Transfer Tax

Every time a property changes hands in Costa Rica, a transfer tax is due. The rate is 1.5% of the registered value of the property.

That registered value is important to understand. Costa Rica property is recorded in the National Registry at a declared value that is often lower than the actual market price. The transfer tax is calculated on the registered value, not the price you negotiate with the seller.

The buyer and seller typically split the transfer tax and closing costs by negotiation. There is no legal requirement for who pays what. Many buyers discover this is negotiable only after signing a purchase agreement.

What to watch for: Confirm the registered value of the property before making your offer. If the property has not been updated in years, there may be a significant difference between registered value and market value. This affects how the transfer tax is calculated and can cause confusion at closing.

Tax 2: The Annual Municipal Property Tax

Every property owner in Costa Rica pays an annual municipal property tax of 0.25% of the declared value of the property. This is one of the lowest property tax rates in the Western Hemisphere. For a property with a declared value of $300,000, the annual tax is $750.

Unpaid municipal taxes create a lien on the property that transfers to the new owner at sale. This is a real issue in Costa Rica. Properties that change hands multiple times without proper due diligence sometimes carry years of unpaid municipal taxes.

What to watch for: Your attorney should pull a municipal tax certificate as part of due diligence. If there are unpaid taxes, negotiate for the seller to clear them before closing or adjust the price accordingly. See our guide to doing due diligence when buying property in Costa Rica for the full verification checklist.

Tax 3: The Luxury Property Tax (Impuesto Solidario)

This is the tax that surprises the most foreign buyers.

Costa Rica has a separate progressive tax called the Impuesto Solidario, or Solidarity Tax, that applies to luxury residential properties. As of 2026, the tax applies to residential properties with a construction value over approximately 133 million colones, roughly $270,000 at current exchange rates. The rate starts at 0.25% and increases progressively up to 0.55% for very high-value properties.

This tax applies to the construction value, not the land value. A $400,000 property where the construction is valued at $180,000 might fall into this category even if you consider the property mid-range.

The tax is self-declared. The owner reports the construction value and pays accordingly. A declaration is filed every three years.

What to watch for: Before buying a property that may fall into this category, get a professional appraisal of the construction value so you know your annual Solidarity Tax obligation. Some sellers significantly undervalue construction on their declaration. Your attorney should advise you on proper compliance.

Tax 4: Capital Gains Tax

Costa Rica introduced a capital gains tax in 2019. The rate is 15% on the gain from the sale of a property. The gain is calculated as the difference between the sale price and the adjusted cost basis.

There is a key exception that applies to many individual buyers: if the property was your habitual residence and you have owned it for more than two years, the first 200 million colones of the gain may be exempt.

For investment properties, the 15% capital gains tax applies to the net gain. Costs of improvements, renovation, transaction fees, and other documented expenses can reduce the taxable gain.

What to watch for: If you are buying as an investment with the intent to sell later, structure the purchase correctly from the start. Keep records of every improvement, renovation, and documented cost. Your attorney should advise on proper cost basis documentation at the time of purchase, not years later when you are ready to sell.

Tax 5: Corporation Taxes (If You Buy Through an S.A. or S.R.L.)

Many foreign buyers in Costa Rica purchase property through a Costa Rican corporation, specifically an S.A. (Sociedad Anónima) or S.R.L. (Sociedad de Responsabilidad Limitada). There are legitimate reasons to do this, including asset protection and estate planning.

If you own a corporation in Costa Rica, you pay an annual corporate fee to the government. As of 2026, active corporations pay around 55,000 colones per year, roughly $110. Inactive corporations holding only real estate pay a reduced rate.

If a corporation fails to pay this annual fee, it can be dissolved. A dissolved corporation cannot legally transfer property until it is reinstated, which creates complications at sale. This is more common than most buyers expect.

What to watch for: If the property you are buying is held in a corporation, verify that all corporate fees are current. Your attorney should check the corporate status in the National Registry before you proceed.

Closing Costs Are Separate From Taxes

Buyers often lump closing costs in with taxes, which creates confusion. The transfer tax is a government tax. The following are costs, not taxes, but you will see them on your closing statement:

• Notary fees: typically 1% to 1.25% of the sale price
• National Registry recording fees: approximately 0.5%
• Documentary stamps and legal fees: variable

Total closing costs in Costa Rica typically run 3% to 5% of the purchase price on top of the transfer tax. Budget accordingly.

A Real Example

A foreign buyer purchases a property for $350,000 in Guanacaste. The registered value is $220,000.

• Transfer tax at closing: $3,300 (1.5% of $220,000 registered value)
• Annual municipal property tax: $875 per year (0.25% of $350,000)
• Solidarity Tax: may apply depending on construction value, approximately $700 to $1,400 per year
• Capital gains tax at future sale: 15% of net gain, with proper cost basis documentation reducing the taxable amount

That is a total first-year cost of roughly $4,900 beyond the purchase price in taxes and first-year obligations. Not catastrophic, but buyers who have not planned for it are often caught off guard at closing.

What the Tax Structure Tells You About Due Diligence

Every tax item above carries a risk that a buyer who skips proper due diligence will absorb. Unpaid municipal taxes. Incorrect registered values. Undeclared construction. Dissolved corporations with years of unpaid fees.

These are not rare edge cases. They come up in property investigations regularly.

The only way to know what you are actually inheriting when you buy a property in Costa Rica is to have someone check all of it before you commit. That means a real estate attorney handling the legal layer and, ideally, someone on the ground who has physically seen the property and can verify what is there.

Read our full guide on what brokers won't tell you as a foreign buyer in Costa Rica for a broader picture of the risks involved.

If you are seriously considering purchasing property in Costa Rica and want independent eyes on the ground before you commit, The Buyer's Office exists for exactly this. Book a free 30-minute call with Marcelo at the link below.

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