Real Estate Taxes in Costa Rica

Property Taxes

Property taxes in Costa Rica are low. The current annual rate is 0.25% of the recorded value, which is nearly always lower than the actual value. If a house costs $200,000, for example, you would pay only $500 a year even if that were the recorded value. In practice, it would generally be much less. In Costa Rica, property taxes are usually paid quarterly.

Annual Property Taxes

Beginning Nov. 30, 1995, the law changed to place the administration and collection functions for property taxes in the hands of local governments (municipalidades) where the property is located. It is these entities’ responsibility to conduct property appraisals and collect the corresponding property tax. The property tax is established on an annual basis and may be paid annually, by semester, or by quarter, depending on the procedures established by each local government. The municipality may set its own rate not to exceed 1%.

Transfer Taxes

There is a 3% property transfer tax. This tax is based upon the registered value placed on the property transfer deed at the time of sale.

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