How Much Are Closing Costs in Costa Rica? Here’s Your Ultimate Guide:
Closing costs in Costa Rica: The last step to the purchasing process
- Opening an Escrow account in Costa Rica
- The steps to finalize your home purchase
- Why you need a Costa Rican corporation to hold your property
Now…
Ready to close on a piece of paradise? Let’s discuss the nitty-gritty of closing costs in Costa Rica, so you can say adios to the paperwork and hola to the Pura Vida.
Closing Costs in Costa Rica: Your step-by-step guide
…who pays?
Typically the cost of the title transfer is shared 50/50 between the buyer and the seller. Of course, this can vary depending on how you negotiate the contract (and the state of the real estate market.)
How are closing costs in Costa Rica calculated?
1. The contracted sales prices
2. The registered fiscal value in the National Registry
All the closing costs are a percentage of your property value, so when calculating your closing costs in Costa Rica, you’ll want to have this number handy.
What are the closing costs in Costa Rica?
1. Property transfer taxes
The transfer tax is 1.5% of your property value.
Let’s say your contracted sales price is $544,000, but the recorded fiscal value is $600,000. Since the latter is higher, you’ll pay 1.5% of the fiscal value. That puts your transfer tax at $9,000.
2. Stamp fees
Stamp fees ensure all documentation is official in any legal process. For closing costs in Costa Rica, you’ll need two types of stamps: National Registry Stamps and Documentary Stamps.
National Registry Stamps are just .5% of your property value.
There are five different documentary stamps, each with its own cost:
Agrarian: 0.15%
Fiscal Stamp: less than $2
National Archives: less than $1
Bar Association: less than $100
Municipal: 0.2%
To cover all fees associated with Documentary Stamps, budget for 0.35% of your property value (for the Agrarian and Municipal stamps) and around $100 (for the Fiscal, National Archives, and Bar Association stamps).
3. Notary registration fees
Only lawyers can become notaries in Costa Rica. When you work with a trusted legal representative (Tropical Investments can recommend you to the best in the area) for your property purchase, then you can rest assured that they are reputable notary publics.
Suppose your property value is over 30 million colones (approximately $46,000). In that case, your notary registry fees will be around 462,500 colones, or $718 for the first 30 million colones — plus an additional 1.0% of your additional property value.
Let’s say your property is valued at $460,000. You’ll pay around $718 for the first $46,000. Then, you’ll pay 1.0% of $414,000 ($460,000 – $46,000) which is $4,140. Your total Notary Registration Fees for a property valued at $460,000 would then be $4,858 ($4,140 + $718).
You’ll pay Notary Registration Fees on a sliding basis as your property value increases. When in doubt, speak with your real estate representative or lawyer about the exact Notary Registration Fee. They can help you navigate the math so you can budget for closing costs in Costa Rica.
Other costs associated with purchasing property in Costa Rica
The bottom line
Your closing costs in Costa Rica are determined as a percentage of your property value. You can roughly calculate these costs as follows:
- Transfer tax: 1.5%
- Stamps: 0.85% + $103
- Notary Registration (Legal) Fees: Around $718 + 1% of (your property value – 30 million colones) with a VAT added on (calculated as 13% of your notary registration fees)
Remember that Costa Rica’s annual property taxes are just 0.25% to 0.55%
Here’s the thing:
When you work with the right real estate agent, you get the one-on-one support you need to navigate the purchasing process and closing costs in Costa Rica. Still, we believe an educated buyer is a happy buyer.
That’s why we created this free guide: Everything You Need To Know About Buying Property In Costa Rica.
At over 50 pages, this resource is jam-packed with everything you need to know about purchasing real estate in Costa Rica so you can confidently embark on this exciting journey.
Download our FREE Buyer’s Guide and get access to over 50 pages of information on purchasing real estate in Costa Rica.
