The Investment Process
Taxes & Fees
Costa Rica's tax regime for real estate investors — one of the most favorable in the Americas
Step-by-Step Guide
Property tax (Impuesto sobre Bienes Inmuebles)
0.25% of the registered property value per year, paid quarterly to the municipality. Based on the self-declared registered value, which is often below market value.
Luxury home tax (Impuesto Solidario)
Properties with construction value over ~$250,000 (threshold adjusted annually) pay an additional luxury home tax of 0.25–0.55%. This is separate from property tax.
Rental income tax
Rental income in Costa Rica is subject to a withholding tax of 15% (for non-residents) or included in regular income tax for residents. Professional property managers typically handle withholding.
Capital gains tax
15% on gains from properties purchased after July 1, 2019. Pre-2019 purchases: sellers may elect the 2.25% transitional rate (applied to sale price) instead of 15% of gain.
Transfer tax on purchase
Buyer pays 1.5% transfer tax to the government plus 0.5–0.6% in registry stamps at closing. This is in addition to legal/notary fees.
Typical Costs
| Item | Amount |
|---|---|
| Annual property tax | 0.25% of registered value |
| Luxury home tax | 0.25–0.55% (if applicable) |
| Rental income withholding | 15% for non-residents |
| Capital gains tax | 15% of gain (post-2019 purchases) |
| Transfer tax (at purchase) | 1.5% of declared value |
FAQ — Taxes & Fees
Is Costa Rica a tax haven for real estate investors?
Not technically a tax haven, but one of the most favorable tax regimes in Latin America. Property tax of 0.25% is among the lowest in the hemisphere. No inheritance tax. Capital repatriation has no restrictions. Consult a Costa Rican CPA for your specific situation.
What is the pre-2019 transitional regime for capital gains?
Properties purchased before July 1, 2019 (when Costa Rica's capital gains tax was introduced) allow sellers to choose between: (a) 15% of the actual gain, or (b) 2.25% of the total sale price. For properties that have appreciated significantly, option (b) is often more favorable.