Owning a property in Costa Rica not only offers a slice of tropical paradise but also comes with its own set of associated costs. Understanding these expenses is crucial for effective financial planning.
Here’s an in-depth breakdown of the costs involved in owning a property in Costa Rica, covering property tax, utility bills, maintenance, insurance, property management, maid service, and additional fees for properties held in a Costa Rican corporation.
1. Property Tax: .25% of Assessed Value
Low Comparative Tax Rate:
Annual Cost: Costa Rica’s property tax is remarkably low, amounting to 0.25% of the assessed value. For every $100,000 of assessed value, property owners pay $250 per year in property tax. Luxury properties and beachfront locations may have exceptions to this standard rate.
2. Utility Bills:
Electricity: $100-300 per Month:
Varied Costs: Monthly electricity expenses typically range from $100 to $300, contingent on the property’s size and factors like a heated pool.
Water: $30-$80 per Month:
Usage-Dependent: Water bills range from $30 to $80 per month, influenced by consumption and whether the property includes a pool.
3. Maintenance:
Annual Maintenance Costs:
Condo vs. Luxury House: Maintenance costs vary, ranging from $500 per year for a condo to $2,000 for a larger luxury house.
4. Insurance: $500-$1000 per Year
Annual Premiums:
Variable Costs: Property insurance in Costa Rica typically costs between $500 and $1,000 per year, depending on factors such as property value, location, and coverage.
5. Property Management: $125-$150 per Month
Monthly Management Fee:
Remote Ownership Requirement: For those not residing in the property full-time, a property manager is essential. Monthly fees for property management services range between $125 and $150.
6. Maid Service: $20-$40 per Day
Affordable Cleaning Services:
Flexible Pricing: Maid services in Costa Rica are economically priced, ranging from $20 to $40 per day based on the size of the home.
7. Additional Fees for Properties Held in a Costa Rican Corporation:
Corporate Tax: $194 per Year:
Annual Corporate Fee: Properties held in a Costa Rican corporation incur an annual corporate tax of $194.
Resident Agent Fee: $300 per Year:
Legal Requirement: A local attorney acts as the resident agent for the property held in a Costa Rican corporation, receiving documentation. The annual fee for this service typically amounts to $300.
Understanding these ownership costs empowers property owners to budget effectively and ensures a clear picture of the ongoing expenses associated with owning a property in the beautiful landscape of Costa Rica.