Frequently Asked Questions

General

Indeed, both foreigners and non-residents are entitled to purchase property in Costa Rica with the same privileges as local citizens. Residency or a particular visa is not required for property acquisition. Nonetheless, there are specific restrictions, especially in the Maritime Zone, which encompasses land up to 200 meters from the high tide mark. Here, direct ownership by foreigners is prohibited, but they can secure long-term leases or own property indirectly via a Costa Rican company that includes local shareholders. For a more comprehensive understanding we’ll be glad to help, guide you through the process and connect with a real estate lawyer expert in Costa Rican legislation.

Having a lawyer is always advised.  Your lawyer will support you in:

  • Perform Due Diligence – Confirm the property’s legal status, ownership, title, valid survey plan, and check for any liens or encumbrances.
  • Prepare & Review Contracts – Ensure the sale-purchase agreement safeguards your interests.
  • Escrow Services: Many lawyers or law firms also provide or manage escrow services, which is crucial for secure transactions
  • Manage the Title Transfer – A notary lawyer will draft the transfer deed and officially register it. All real estate transactions must be formalized through a notarized public deed and registered with the National Registry (Registro Nacional).
  • Establish a Corporation (if needed) – Assist in setting up a Sociedad Anónima (S.A.) or S.R.L. for property ownership.
  • Handle Closing Costs & Taxes – Calculate and facilitate the payment of real estate transfer taxes, legal fees, and municipal obligations.

You can choose to do either one. Most buyers purchase through a Costa Rican corporation (S.A. or S.R.L.) for tax and liability benefits.

– Annual Corporate Tax in accordance to Law 9428:
 
All corporations, whether active or inactive, must pay an annual tax. For an inactive corporation, this tax equals to 15% of a one month base salary. As of Janurary 2025 base salary is approx $930 month ($930 x 15% = $140).  The payment must be made within the first thirty calendar days of January each year. 
 
– Annual Sworn Statement submitted to Costa Rican Central back in accordance to Law 9416 to fight and prevent fiscal fraud: 
 
This is called the “Registry of Transparency and Final Beneficiaries (RTBF) Declaration”: Inactive corporations must submit this declaration annually to the Central Bank of Costa Rica to show who the ultimate beneficial owners are. This is part of anti-money laundering efforts and financial transparency. Some of the information includes basic corporate details like the legal name, primary business activity, corporate ID, official address, owners, identification numbers, addresses, and percentage of shares owned by shareholders. Details of individuals controlling the entity, such as those owning over 15% of the company’s capital or voting rights, those with the authority to appoint or remove a majority of board members, etc. 
 
Declaration assets of inactive companies: 
 
This is done via FORM D-195. This is an informational tax form specifically designed for legal entities that do not conduct economic activities. The purpose of the form is to ensure tax compliance by providing information about the assets and liabilities of inactive companies. Some of the information to be disclosed and collected in this form: Reasons for inactivity, ownership of trademarks, patents, movable and immovable property. cash balances, bank accounts, debts, assets held abroad, details on who covers the expenses and obligations of the inactive company, etc.

about Buying

1. Define Your Budget & Financing

  • Determine if you’ll pay in cash or need international financing (Costa Rican banks rarely offer mortgages to foreigners).
  • Consider additional costs like taxes, legal fees, and closing costs (typically 4-5% of the property value).

2. Find the Right Property

  • Work with a reputable real estate agent such as GICR Homes.
  • Visit potential properties to assess location, accessibility, and infrastructure.

3. Conduct Due Diligence (Hire a Lawyer -see answer in question  above)

4. Make an Offer & Sign a Purchase Agreement

  • Negotiate price and terms with the seller.

  • Sign a Sale-Purchase Agreement (Contrato de Opción de Compra), usually with a 10-15% deposit placed in escrow.

5. Set Up a Holding Structure (if needed)

  • Many buyers purchase through a Costa Rican corporation (S.A. or S.R.L.) for tax and liability benefits.
  • Your lawyer can set this up if required.

6. Transfer of Ownership & Closing

  • The closing process is done by a notary public (who is also a lawyer).
  • The lawyer drafts the transfer deed and submits it for registration.
  • The remaining balance is paid, and closing costs/taxes are settled.

7. Register the Property & Pay Taxes

  • The notary registers the deed in the National Registry.
  • Ensure the new ownership is reflected in municipal records.
  • Pay annual property taxes (0.25% of the registered value).

about Costs and Fees

Closing Costs (Approximately 4-5% of Property Value)

  • Real Estate Transfer Tax – 1.5% of the greater of the total declared value of the property or the fiscal value indicated in the public records.
  • Notary & Legal Fees – 1-2% of the property value (minimum $1,500-$2,000).
  • Registration & Stamps Fees – Around 0.8% of the property value.
  • Escrow Fees – If using an escrow service, expect to pay $500-$1,500.
  • Miscellaneous Legal Costs: If you opt to own the property via a corporation, additional costs for its establishment could range from $700 to $1,500.

Costa Rica property taxes are generally lower than US and many other countries which make it appeal for foreign investors. In general there are 2 types of taxes:

  • Municipal Property Tax – 0.25% of the registered property value (very low compared to other countries). Applicable to all properties in Costa Rica.
  • Luxury Home Tax (Impuesto Solidario): This tax is based on a sliding scale and applies to homes with a construction value exceeding ₡152,000,000 (approx. $290,000 USD in 2025). The tax applies only to the home and luxury-related structures (not raw land). The construction value is determined using a government index, not the market price. ax rates are progressive, ranging from 0.25% to 0.55%, increasing with property value.

n Costa Rica, real estate agent commission is typically 5% of the property’s selling price, but it can be lower or higher depending on factors like location, property type, and exclusivity.

Commission Breakdown:

  • Standard Residential & Commercial Properties: 5% (most common).
  • Luxury Properties (Usually over $1M USD): 3% to 5%.
  • Raw Land: For raw land or properties in more remote areas, commissions might be higher due to the additional work involved in showing and selling these properties.6% to 10%.

Who Pays the Commission?

  • The seller usually pays the agent’s commission.
  • If multiple agents are involved, they split the commission.

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