Here’s the breakdown for Costa Rica property transaction fees and costs.
Transfer Tax: 1.5% of the property’s sale value, paid to the National Registry.
Lawyer / Notary Fees: A sliding scale of 1% to 1.5% depending on the purchase price. This covers the title search and other due diligence, drafting the transfer deed and recording the new title in the National Registry.
Government Stamps and Registry Fees: Around 0.8% of the purchase price. This includes various minor taxes for National Registry, Agrarian and Fiscal stamps, National Archives and the Bar Association.
Total Closing Costs: From 3.3% to 4% depending on the purchase price. In Costa Rica, there is no law or regulation requiring who pays the property transaction fees however normal custom is either the Buyer pays the full amount or sometimes it can be negotiated as part of an offer to split the fees 50/50 between the Buyer and Seller.
Other potential costs: Escrow fees or incorporating a new company to hold the property.
Broker / Agent commission: Varies between 5%-7% + 13% service tax on the commission amount – Paid by the Seller.
Annual Property Tax: 0.0025% ( 1/4 of 1%) of the registered value.