Updated: Jan 7, 2020
When it comes to buying a property in Costa Rica many people ask which taxes do you need to pay.
We've wrote them down so you can have an idea of which taxes you will be paying before you buy your property:
Property Transfer Tax
This is the first tax you will pay and is 1.5% of the purchase price, along with a few stamps involved. The National Registry Stamp is 0.5% and the document stamps are scaled and less than 0.01%. The tax is part of the total closing cost. It is retained at closing and then paid by the notary public.
This tax is paid annually (with a Little discount) or every quarter at the municipal offices. It's 0.25% over the registered value in the Municipalidad where the property is located. The value of the property needs to be updated every 5 years (this is obligated by property owners in the same municipality).
Luxury Home Tax
Luxury homes pay an annual luxury home tax, but this tax it's not so easy to calculate. In the tax authorities website you can see how to calculate. Property owners are exempt from this tax for less than $218,333 in construction value. The tax is calculated from 0.25% to 0.55% and has to be paid before January 15th.
To those property owners who have the property registered in a Corporation have to pay corporation tax: there are different charges for an active and an inactive corporation and they change when the legal base salary.
If you want more Information about other taxes, you can contact us!