Selling real estate in Costa Rica involves specific transaction costs, legal fees, and tax obligations. To accurately estimate your net proceeds, sellers must account for real estate commissions, value-added tax (VAT), closing costs, and capital gains taxes.
Here is a comprehensive breakdown of the real estate disposition expenses in Costa Rica for 2026.
Quick Summary: Total Average Cost to Sell
On average, a seller should anticipate transaction costs ranging between 8.2% and 9.5% of the gross sales price, depending on capital gains tax liabilities and corporate dissolution needs.
1. Real Estate Commission & VAT (Value Added Tax)
The standard real estate commission in Costa Rica is 6% of the final agreed purchase price.
- The Commission Rate: 6%.
- Value Added Tax (VAT): By Costa Rican law, a 13% VAT must be applied directly to the commission amount (not to the property value).
- Example: On a $500,000 sale, the commission is $30,000, and the 13% VAT adds $3,900, totaling $33,900.
2. Shared Closing Costs
Closing costs in Costa Rica typically amount to roughly 4.4% of the transaction value. This encompasses transfer taxes, notary fees, registry stamps, and escrow fees.
- Standard Practice: Closing costs are traditionally split 50/50 between the buyer and the seller.
- Seller’s Share: The seller usually pays 2.2%.
- Negotiation Note: While a full-price offer usually entails a 50/50 split, buyers submitting below-asking-price offers may be required to cover 100% of the closing costs.
3. Capital Gains Tax (Impuesto a las Plusvalías)
The capital gains tax applies whenever a property is sold for a profit. The rate depends heavily on two factors: the purchase date and residency status.
Category A: Primary Residence (Vivienda Habitual)
- Exempt: If the property is your primary residence (where you live for at least 183 days a year), you are 100% exempt from capital gains tax.
Category B: Investment Property / Lots / Second Homes
If the property is not your primary residence, you must choose between two tax calculation methods:
- The 2.25% Rule (Flat Rate): Available only if the property was acquired before July 1, 2019. You pay a flat 2.25% of the total selling price.
- The 15% Rule (Net Gain): Mandatory if purchased after July 1, 2019. You pay 15% on the net profit (Selling Price minus Original Purchase Price plus documented capital improvements).
4. Corporate Dissolution Costs (If Applicable)
Many properties in Costa Rica are owned through a holding corporation (such as an S.A. or SRL).
- If you sell the property and wish to liquidate or close the corporation afterwards, attorney fees and corporate taxes for dissolution typically cost around $1,000.
Real-World Math: Seller’s Net Proceeds Examples
Scenario 1: Sale of a $500,000 Property
(Assumptions: Primary Residence exempt from Capital Gains, acquired before 2019, 50/50 closing cost split)
| Expense Item | Calculation | Cost (USD) |
| Gross Sales Price | – | $500,000 |
| Realtor Commission | 6% of $500,000 | -$30,000 |
| VAT on Commission | 13% of $30,000 | -$3,900 |
| Seller’s Closing Costs | 2.2% of $500,000 | -$11,000 |
| Corporate Dissolution | Flat Fee | -$1,000 |
| Total Fees & Costs | – | -$45,900 |
| Net Seller Proceeds | Gross minus Total Fees | $454,100 |
Scenario 2: Sale of a $300,000 Property
(Assumptions: Primary Residence exempt from Capital Gains, acquired before 2019, 50/50 closing cost split)
| Expense Item | Calculation | Cost (USD) |
| Gross Sales Price | – | $300,000 |
| Realtor Commission | 6% of $300,000 | -$18,000 |
| VAT on Commission | 13% of $18,000 | -$2,340 |
| Seller’s Closing Costs | 2.2% of $300,000 | -$6,600 |
| Corporate Dissolution | Flat Fee | -$1,000 |
| Total Fees & Costs | – | -$27,940 |
| Net Seller Proceeds | Gross minus Total Fees | $272,060 |
Frequently Asked Questions (FAQ)
Who pays the capital gains tax in Costa Rica?
The seller is legally responsible for paying the capital gains tax. If the seller is a non-resident foreigner, the buyer is required by law to withhold 2.5% of the purchase price at closing to guarantee this tax payment to the Ministry of Finance (Hacienda).
Is the real estate commission taxable?
Yes, the 6% commission is subject to a 13% Value Added Tax (VAT). Sellers should ensure they receive a formal electronic invoice (Factura Electrónica) from their broker to legally deduct this expense.
Can closing costs be negotiated?
Absolutely. While a 50/50 split is standard, everything is open to negotiation during the offer and counter-offer phase.