Costa Rica Property Tax Guide 2026
Costa Rica imposes several property-related taxes: a 1.5% transfer tax on property purchases, 0.5% stamp duty (timbre), and an annual municipal property tax (impuesto sobre bienes inmuebles) at 0.25%. Capital gains tax of 15% applies on property sales unless it is the primary residence.
Property Purchase Taxes
When purchasing property in Costa Rica, the buyer is responsible for several transaction taxes and fees. These are typically paid at the notary stage when the deed (escritura) is registered:
- Transfer tax (Impuesto de transferencia): 1.5% of the declared property value or registered value
- Stamp duty (Timbre): 0.5% of the declared property value
- Notary fees: Typically 1–1.5% of the property value
- Registry fees: Approximately 0.25% for property registration
Total closing costs typically range from 3% to 4% of the purchase price.
Annual Municipal Property Tax
Property owners in Costa Rica must pay an annual municipal property tax (Impuesto sobre Bienes Inmuebles — IBI) of 0.25% of the registered property value. This tax is collected by the local municipality (municipalidad) and funds local services such as road maintenance, garbage collection, and public lighting. Payment is typically made quarterly or annually.
Capital Gains on Property
When selling property, the seller is subject to capital gains tax (CGT) at 15% on the net gain. However, the sale of a primary residence is fully exempt from CGT. For non-primary residences, the gain is calculated as the sale price minus the adjusted acquisition cost (including documented improvements). A withholding is typically applied at the notary stage as an advance payment.