The real cost of owning property in Costa Rica

What does it actually cost to own property in Costa Rica each year? Less than most buyers expect. The headline annual property tax is just 0.25% of the registered value — one of the lowest rates in the region — though a few other charges apply on higher-value homes. Here is the full picture.

Annual property tax

Costa Rica charges an annual property tax (Impuesto sobre Bienes Inmuebles) of 0.25% of the property’s registered value, paid quarterly to the local municipality. On most homes it is modest, and it is worth keeping the registered value accurate.

The luxury-home tax

Higher-value residences also pay the Impuesto Solidario, or luxury-home tax, which funds social housing. It applies when the value of the construction (not the land) exceeds a threshold set each year — around ₡143 million for 2026. Rates are progressive, running from roughly 0.25% up to about 0.55% on the highest brackets, so a luxury property should budget for it.

One-time and corporate costs

At purchase, expect a transfer tax of 1.5% plus registry and stamp fees, with total closing costs landing around 3.5% to 4%. If you hold the property through a Costa Rican company — common but optional — budget roughly $300 to $500 a year for the corporate tax and resident-agent fees.

The yearly total

Add it up, and annual ownership costs typically run between about 1% and 4% of the property’s value, depending on whether the luxury tax applies and how you hold title. For a country of this quality of life, that is low, and predictable.

At a glance

• Annual property tax: 0.25% of registered value, paid quarterly.
• Luxury-home tax: 0.25%–0.55% on homes above the yearly construction-value threshold (₡143M in 2026).
• Transfer tax at purchase: 1.5%, with total closing costs ~3.5%–4%.
• Corporation (if used): ~$300–$500/year.
• All in: roughly 1%–4% of value per year.

The short version: Costa Rica’s property taxes are famously low — 0.25% a year, with a modest luxury-home tax on higher-value homes and one-time closing costs around 3.5%–4%. To talk through the numbers on the estate, get in touch.

Figures are indicative for 2026; confirm current rates and thresholds with a Costa Rican tax professional.