Costa Rica — Property: Buying Process

Why this matters

Getting the transfer tax rate and total closing-cost estimate right (1.5% tax, ~3-3.5% all-in) matters for real budgeting — the AI draft's 1% figure would have led buyers to underestimate their closing costs.

Key facts

• Property transfer tax is 1.5% of the higher of the contract sale price or the fiscal/cadastral value registered with the Ministerio de Hacienda, per Ley No. 6999.
• The transfer tax is normally withheld by the authorizing notary at closing and remitted to Hacienda before the deed reaches the Registro Nacional.
• Total closing costs, including the 1.5% transfer tax, roughly 0.5% registry stamps, and 1-1.5% notary fees, commonly add up to about 3-3.5% of the property value.
• Foreigners can buy property in Costa Rica with the same ownership rights as citizens for regular titled land; the main exception is maritime-zone (ZMT) coastal concessions, which follow different rules (see the Legal Checks page).
• Title insurance is not legally mandatory but is commonly recommended, especially for buyers unfamiliar with the local title-verification process.

Steps

1. Find a property and make an offer — Work with a licensed real estate agent to find a property and negotiate price and terms.
2. Conduct due diligence — Verify title and check for liens/encumbrances through the Registro Nacional de la Propiedad, and confirm whether the property is titled land or a maritime-zone concession if coastal.
3. Sign the purchase agreement and close — A notary prepares and authorizes the Escritura Pública (deed); the notary typically withholds and remits the 1.5% transfer tax and registers the transfer with the Registro Nacional.

Costs

• Property transfer tax: 1.5% of the higher of the sale price or fiscal/cadastral value (Ley No. 6999)
• Registry stamps: Roughly 0.5% of property value
• Notary fees: Roughly 1-1.5% of property value
• Total closing costs (all-in): Commonly around 3-3.5% of property value

Timelines

• Due diligence and closing: Commonly 2-6 weeks, longer for maritime-zone or more complex properties

Required documents

• Passport or ID
• Proof of funds
• Purchase agreement
• Title/concession report from the Registro Nacional
• Notarized deed (Escritura Pública)

Common mistakes

• Budgeting only the 1.5% transfer tax and forgetting registry stamps and notary fees, which bring total closing costs to roughly 3-3.5%
• Not confirming whether the property is titled land or a maritime-zone concession before making an offer
• Skipping title insurance despite it being commonly recommended for buyers unfamiliar with local due diligence