Envision yourself owning a piece of paradise?

 

At this point there are many questions that probably come to your mind, here we put together few of the most common ones that we have been answering for our clients through the years.

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Is it safe to buy property in Costa Rica?

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Foreigners have the same rights when purchasing a property in Costa Rica as locals do. You can have the title on your personal names, even if you are not resident, or you can put it on the name of a corporation, which is pretty easy to create with a local lawyer for about $600.

 

Who pays the closing costs on Costa Rica property?

 

​The closing costs on Costa Rica property title transfer, escrow account, due diligence and attorney fees are usually on the buyer. 

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How much are the closing costs?

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In Costa Rica, when you buy a property, you have to pay a property transfer tax (Impuesto de Traspaso).

This tax is 1.5% of either the fiscal value or the sales price, whichever is higher (In case the property is titled on a corporation and the owner agrees you can simply acquire the corporation and skip the transfer fees).

The notary fees goes around 1%-1.25%. This is inevitable because the purchase must be drafted and registered by a public notary.

 

To make an example if we have:

• Property price: $580,000

• Transfer tax (1.5%): $8,700

• Notary fees: usually 1% - 1.25% of the property value.

Calculating:

• 1% of 580,000 = $5,800

• 1.25% of 580,000 = $7,250

So the total would be:

• Minimum: 8,700 + 5,800 = 14,500 USD

• Maximum: 8,700 + 7,250 = 15,950 USD

Summary: You would pay between approximately $14,500 and $15,950 in total for taxes and notary fees at the time of property transfer.

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First step of the process:

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If you are interested in purchasing a property normally you must put down 10% deposit into an escrow account to put it under contract for a specific amount of time to be negotiated. Also closing time is part of the negotiation.

A full due diligence work (which takes about 1 month) is recommended before buying a property (but not obligatory)
Usually it costs between $1,500 and $3,000.

It depends on:

• the complexity of the property (e.g., rural land, home inside a gated community, etc.);

• whether you’re just checking the property or also an entire corporation (with accounting and tax obligations);

• how fast you want the process completed.

 

What is usually included in due diligence?

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• Checking that the corporation is in good standing (no debts, no unpaid taxes, no lawsuits).

• Checking that the property title is clear (no mortgages or liens).

• Verifying building permits (if there’s a house).

• Verifying the municipal and national tax situation.

• Providing a written report with recommendations.

 

 

The cost of escrow services in Costa Rica is typically:

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• 0.15% to 0.25% of the transaction amount.

• Minimum fee: many escrow companies charge a fixed minimum, usually $500–$800, even if the percentage would be lower.

 

Building Costa in Montezuma area:

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Building costs vary a great deal depending on the project, the location, the construction method, materials used and finishings, with an estimate of $800/1.000 per m2, minimum. It can be less with prefab.