Closing Costs in Costa Rica: How They’re Calculated and What You’re Really Paying For

Closing Costs in Costa Rica

How They’re Calculated and What You’re Really Paying For

A Plain-English Breakdown of Taxes, Fees and Due Diligence for Buyers

If you’re buying property in Nosara or anywhere else in Costa Rica, one of the first questions to sort out — right after “can I even buy here as a foreigner?” — is what it actually costs to close. Unlike some markets where closing costs feel like a grab bag of surprise fees, Costa Rica’s are largely set by law and calculated as a fixed percentage of your property’s value. That makes them predictable, but the “why” behind each line item isn’t always explained clearly. Here’s the full breakdown.

The Short Answer: Budget About 4.8%–5%
In our community, total closing costs on a real estate transaction typically run 4.8% to 5% of

the property’s value, and by custom in Nosara, these are generally paid by the buyer. That percentage is calculated against whichever is higher: the fiscal value of the property (the value on record with the municipality) or the actual purchase price.

Here are the base rates behind that 4.8%–5%:

These are the base rates. Costa Rica applies some taxes on top of fees and then taxes the resulting total, so the percentages compound. Once everything is calculated, the all-in cost on a typical transaction lands at about 4.8%–5% of the property’s value. It varies slightly with your purchase and whether your attorney charges a flat due diligence fee instead of a percentage, so ask your attorney for a line-by-line estimate for your specific transaction.

Breaking Down Each Cost Transfer Tax — 1.5%

This is the government tax triggered any time real property changes hands in Costa Rica. It’s calculated on the higher of the fiscal value or purchase price and is non-negotiable — every transaction pays it.

Duties & Stamps — 0.9%

These are the registration duties and documentary stamps required to officially record the new deed with the National Registry. Think of this as the cost of making your ownership legally official and searchable in the public record.

Notary Fees — 1.25%

In Costa Rica, a notary is actually an attorney with special notarial authority — not just someone stamping a document. Notary fees follow the standard rate set by the National Notary Directorate (Dirección Nacional de Notariado) to draft, transcribe, and record the public deed that transfers the property into your name (or your corporation’s name).

Due Diligence Fee — Typically 0.625%

This is where your attorney does the real investigative work before you ever sign anything. A thorough due diligence report should confirm:

• The seller has clear, marketable title, free of liens or encumbrances
• The property is not located within a wildlife reserve, national park, or other protected area
• The property is legally suitable for residential construction, use, and enjoyment, including a review of applicable zoning and construction regulations
• The property’s on-site boundaries and measurements match the recorded title and survey (this piece is outsourced to a licensed surveyor)
• You won’t be inheriting existing liabilities — unpaid municipal taxes, rollover corporate charges, or outstanding utility bills
• If there’s an existing structure, that it’s in good condition and doesn’t need major repairs (outsourced to a licensed civil engineer)

• The property has access to water and power utilities

  Every law firm scopes due diligence a little differently depending on the transaction and what matters most to the buyer, so it’s worth discussing upfront what’s included. The fee itself is either a percentage of the transaction (commonly 0.625%) or a flat fee, depending on the property’s value and the complexity of the deal. Technical inspections — the surveyor and the civil engineer — are billed separately from the attorney’s due diligence fee.

Services You’ll Likely Need to Budget For Separately

Beyond the closing costs above, most buyers in Costa Rica will need to engage a few additional professionals. These aren’t part of the 4.8%–5% closing cost figure, but they’re a normal part of the process:

• A Costa Rican corporation to hold the property — most buyers purchase through a corporation rather than in their personal name, for liability and estate-planning reasons
• A licensed surveyor to confirm the property’s boundaries and trace the historical segregation back to the original “mother” property
• Escrow services to safely hold and disburse funds during the purchase

• A home inspector, if the property has an existing structure, to evaluate its physical condition

• What About Real Estate Commission?

  Commission works a little differently than closing costs, and it’s the seller’s responsibility, not the buyer’s. Costa Rican law requires a 13% sales tax on real estate commissions. Under Law No. 6826 (Ley de Impuesto General sobre las Ventas), Article 1, Section “n,” brokerages must collect sales tax on all real estate commissions. In practice, this means the seller agrees to pay the commission plus a 13% sales tax calculated on that commission amount — and the broker is responsible for remitting that tax to Costa Rica’s Ministry of Finance (Ministerio de Hacienda).

• Frequently Asked Questions
  Who pays closing costs in Costa Rica — the buyer or the seller?

  By custom in our community, the buyer typically pays closing costs. This is a market norm rather than a legal requirement, so it’s always worth confirming in your purchase agreement.

  Are closing costs calculated on the purchase price or the property’s registered value?

  Whichever is higher — the fiscal (registered) value or the actual purchase price.

  Why do I need a Costa Rican corporation to buy property?

  Most foreign buyers hold title through a Costa Rican corporation rather than personally, primarily for liability protection and easier estate planning. Your attorney can walk you through whether this makes sense for your situation.

  Is due diligence optional?

  It shouldn’t be treated that way. A proper due diligence report is what confirms your title is clean, your property isn’t in a protected zone, and you’re not inheriting someone else’s unpaid

taxes or liabilities. This is one of the most important protections you have as a buyer.

Thinking about buying property in Nosara or elsewhere in Guanacaste? I’m happy to walk you through exactly what your specific transaction will cost and connect you with the trusted attorneys, surveyors, and inspectors who handle this work every day in our community. Let’s connect.