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 Ganancias de Capital)
The capital gains tax applies whenever a property is sold for a profit. It was introduced by the Ley de Fortalecimiento de las Finanzas Públicas (Law No. 9635), effective July 1, 2019, and applies to residents and non-residents alike on Costa Rican-source assets (real estate, shares, securities, crypto-assets, etc.).
Category A: Primary Residence (Vivienda Habitual)
- Exempt: The property is 100% exempt from capital gains tax if it has been the seller's primary/fiscal residence for at least the 3 years immediately preceding the sale. This is a duration-of-ownership requirement, not an annual day-count test.
- Frequency limit: This exemption can generally only be used once every 3 years, to prevent speculative or repeated use.
- Corporate ownership: The exemption can also apply if the property is held under a corporation (S.A. or SRL) that is demonstrably and exclusively used as the shareholders' primary residence.
- Inherited property: Real estate received through inheritance is also exempt from this tax, separate from the primary-residence rule.
Category B: Investment Property / Lots / Second Homes
If the property is not a qualifying primary residence, the seller must choose between two tax calculation methods:
- The 2.25% Rule (Flat Rate on Gross Sale Price): Available only for properties acquired before July 1, 2019, and only for the first sale of that property after that date. The seller pays a flat 2.25% of the total selling price, regardless of actual profit. This election is generally irrevocable per property — once used, the property can no longer be sold in the future using the transitional 2.25% option.
- The 15% Rule (Net Gain): Mandatory for properties acquired after July 1, 2019, and the default/standard rule generally. The seller pays 15% of the net profit (Selling Price minus Original Purchase Price, adjusted, plus documented capital improvements, notary fees, and other deductible costs).
Tip: The 2.25% flat-rate option tends to favor sellers with large, hard-to-document gains (e.g., land bought decades ago at a very low price), since 2.25% of the full sale price can be far less than 15% of the real gain. Sellers with modest appreciation, or good documentation of their acquisition cost and improvements, are usually better off with the 15% net-gain method.
Non-Resident Withholding (Separate from the Final Tax)
Regardless of which method above applies, when the seller is a non-domiciled (non-resident) foreigner, the buyer is legally required to withhold 2.5% of the gross sale price at the time of closing and remit it to Hacienda (Ministry of Finance) as an advance/guarantee payment toward the seller's final capital gains tax liability. If this withheld amount exceeds the seller's actual tax due under the 15% or 2.25% calculation, the seller can file to request a refund of the difference.
Capital gains tax is self-declared and paid using Form D-162. Non-resident withholding is reported separately via Form D-103.
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: Qualifies as Primary Residence — owned/occupied as fiscal domicile for 3+ years — so exempt from Capital Gains Tax; 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 (Investment Property, Acquired Before 2019, Using 2.25% Flat Rate)
(Assumptions: NOT a primary residence; property acquired before July 1, 2019; seller elects the one-time 2.25% flat-rate capital gains option; 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 |
| Capital Gains Tax | 2.25% of $300,000 (flat rate) | -$6,750 |
| Corporate Dissolution | Flat Fee | -$1,000 |
| Total Fees & Costs | – | -$34,690 |
| Net Seller Proceeds | Gross minus Total Fees | $265,310 |
Note: This scenario includes a capital gains tax line for a non-exempt property. Actual capital gains liability depends on individual circumstances — always calculate both the 2.25% and 15% methods to determine which is more favorable before electing.
Frequently Asked Questions (FAQ)
Who pays the capital gains tax in Costa Rica?
The seller is legally responsible for paying the capital gains tax (15% of net gain, or 2.25% of gross sale price if electing the transitional option for pre-2019 acquisitions). If the seller is a non-resident foreigner, the buyer is separately required by law to withhold 2.5% of the purchase price at closing as an advance toward this tax, remitted to the Ministry of Finance (Hacienda).
What qualifies a property as a "primary residence" for the exemption?
The property must have served as the seller's actual fiscal/primary domicile for at least the 3 years prior to the sale — not simply a matter of spending a set number of days there annually. This exemption can only be claimed once every 3 years per taxpayer.
Can I use the 2.25% flat-rate option more than once on the same property?
No. It is a one-time, irrevocable election available only for the first sale of a property acquired before July 1, 2019, occurring after that date.
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.
This article is for general informational purposes and does not constitute legal, tax, or financial advice. Costa Rican tax regulations are subject to change and individual circumstances vary — consult a licensed Costa Rican attorney or certified public accountant before making decisions about a property sale.