Costa Rica — Property: Property Taxes

Why this matters

Costa Rica's 0.25% flat property tax rate is genuinely low by international standards, and knowing it's a flat rate (not a variable range up to 1%) — plus that the taxable value is municipally assessed, not automatically market value — helps owners budget accurately and understand why their tax bill may differ from what the purchase price would suggest.

Key facts

• The annual property tax rate is a flat 0.25% (Impuesto Sobre Bienes Inmuebles) of the property's registered municipal value.
• Property taxes are administered and collected by the local municipality where the property is located, not a national tax authority — assessment practices vary somewhat by municipality.
• The taxable value is based on the declared purchase price or a municipal appraisal, which is often lower than actual market value; municipalities reassess property values roughly every 5 years.
• Payment is typically due by March 31 each year, though many municipalities allow payment in quarterly installments.
• Beyond this annual tax, property owners should be aware of the separate one-time 1.5% property transfer tax due at purchase (see the Buying Process / Foreign Ownership pages), which is a different tax from the annual property tax.

Steps

1. Confirm your municipality's assessed value — Check with the local municipality (municipalidad) for your property's currently registered/assessed value, since this — not necessarily the market price — is the tax base.
2. Calculate and pay the annual tax — Multiply the assessed value by 0.25% to estimate the annual tax; pay by the municipality's deadline (commonly March 31, or via quarterly installments where offered).

Costs

• Annual property tax (Impuesto Sobre Bienes Inmuebles): Flat 0.25% of the registered municipal value

Timelines

• Annual payment deadline: Commonly by March 31 each year, or quarterly installments where the municipality allows
• Municipal reassessment cycle: Roughly every 5 years

Required documents

• Property deed or title
• Proof of ownership
• Municipal tax account/declaration

Common mistakes

• Assuming the annual property tax rate varies up to 1% — it is a flat 0.25% of the municipally assessed value
• Confusing the annual 0.25% property tax with the separate, one-time 1.5% transfer tax paid at purchase
• Not confirming the assessed value with the municipality, which may differ from market price