Although foreign house hunters have virtually no legal limitations when it come to buying property in Costa Rica, they are hardly exempt from the fees and costs associated with acquiring a home, a condo or a piece of land. In the great majority of cases, the buyer is expected to pay for these costs, which are far from being the highest in the region.

A 2014 study published by the Inter-American Development Bank (IADB) explained that the highest closing costs in Latin America are found in Guatemala, where property buyers can expect to shell out up to 16 percent of the settlement value in closing costs. The IADB study estimated that the average closing costs in the Americas in 2014 were about 11 percent of the settlement; in Argentina they can be as low as 6 percent and in the United States they can be as high as 9 percent. Depending on how the transaction is carried out in Costa Rica, closing costs may fall between those of Argentina and the U.S.

According to the staff at RE/MAX Ocean Surf in Tamarindo Beach, buyers can expect up to three categories of closing costs in Costa Rica:

1 – Property transfer taxes and registration fees

2 – Notary fees

3 – Mortgage processing and registration fees, when applicable

It is important to note that property transfer taxes in Costa Rica can be calculated on either the registered value or the purchase price, whichever is higher. Let’s say a buyer agrees to pay $50K on a single-family home in Tamarindo Beach; she will be expected to pay $750 in property transfer taxes (1.5 percent) and $250 (0.5 percent) in registration fees. She will also have to pay a string of “timbres fiscales” (duty stamps), which run about $300.

The notary fees are calculated based on the actual purchase price. Generally, if this amount is higher than $60K, the fee is between 1 and 1.25 percent; if it is less than $20K, the fee is two percent. Mortgage closing costs will greatly vary from lender to lender, but at a minimum there will be an instrument registration fee and timbres fiscales to worry about.

To learn more about closing costs in Costa Rica, please contact the office of RE/MAX Ocean Surf in Tamarindo Beach: 

#1 Sunrise Center
Beach Road, Tamarindo
Toll Free: 1-866-976-8898
Local: 2653-0073 / 2653-0733
[email protected]