Purchasing a home overseas is one of the most significant and exciting financial decisions you can make. If you’re considering Costa Rica, it’s crucial to understand closing costs in Costa Rica before finalizing your purchase. After all, running the numbers accurately ensures there are no surprises at the closing table.

You may be asking:

How much are closing costs in Costa Rica?
What is included in closing costs?
Who pays them?

This guide will break it all down, using a $300,000 property as a practical example.

How Much Are Closing Costs in Costa Rica?

On average, closing costs in Costa Rica run about 3.5% of the purchase price or the registered property value, whichever is higher. While this may be slightly higher than what buyers pay in the United States or Canada, the calculation is straightforward because almost every cost is a percentage of the property’s value.

Costa Rica bases these costs on either the contract price or the fiscal value of the property, whichever is higher. This ensures transparency and prevents transfer tax evasion, which has historically been an issue.

Components of Costa Rica Closing Costs

Closing costs in Costa Rica are divided into four main categories:

Transfer Taxes (1.5%)
National Registry & Documentary Stamps
Legal Fees
VAT/IVA (13%)

Let’s break down each category in detail.

1. Transfer Taxes (1.5%)

Transfer taxes in Costa Rica are calculated at 1.5% of the higher of either the fiscal value or the contract price.

Example: If the registered fiscal value of your property is $300,000, but your contract price is $200,000, the tax is still based on $300,000.
For a $300,000 property, this means $4,500 in transfer taxes.

This fixed percentage makes transfer taxes one of the easier Costa Rica closing costs to calculate.

2. National Registry + Documentary Stamp Fees

Several fees fall under this category, some small, some significant:

National Registry Stamps: 0.5% of property value
Agrarian Fees: 0.15%
Fiscal Stamps: under $2
National Archive Fees: under $1
Costa Rican Bar Association Fees: under $100
Municipal Fees: 0.2%

Example for a $300,000 property:

National Registry: $1,500
Agrarian Fees: ¢190,500
Fiscal Stamps: ¢625
National Archive: ¢20
Bar Association Fees: ¢5,000
Municipal Fees: ¢381,000

Total: approximately $2,410

These fees are unavoidable and necessary for officially recording your property.

3. Legal Fees

In Costa Rica, only lawyers who are public notaries can legally handle property transfers. Notaries are highly respected and required to finalize home purchases.

Legal fees are based on a sliding scale:

2.0% for the first ¢10M
1.5% for ¢10,000,001–15,000,000
1.25% for ¢15,000,001–30,000,000
1.0% for amounts above ¢30,000,001

Example for a $300,000 property: Approximately $3,300 in legal fees.

Pro Tip: Always hire a law firm with a public notary. This ensures your transaction is smooth and legally secure.

4. VAT/IVA (13%)

VAT (known locally as IVA) in Costa Rica applies only to legal fees and escrow services, not the property itself.

For our $300,000 example, the 13% VAT on $3,300 in legal fees equals $429.

This is often overlooked by buyers, but it’s a small fraction compared to other closing costs.

Who Pays Closing Costs in Costa Rica?

Traditionally, the buyer covers closing costs, while the seller pays the real estate commission.

However, buyers and sellers can negotiate who covers certain fees, especially in a buyer’s market or for properties that have been on the market for a while. Understanding these costs upfront gives you stronger negotiating power.

Run Your Own Numbers

If you’re curious and want a more precise estimate, a Costa Rica closing cost calculator can be a valuable tool. It lets you adjust the property price, legal fees, and other variables to see what your total closing costs will be.

A Final Piece of Advice…

Buying property in Costa Rica can be straightforward if you understand what is included in closing costs and how they’re calculated. Always plan for approximately 3.5% of your property price in additional expenses. Hire an experienced lawyer with a public notary, and run your numbers using a closing cost calculator before making any commitments.

By knowing how much closing costs are and what they cover, you can confidently move forward in securing your Costa Rican dream property.

What to Expect With Closing Costs in Costa Rica