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Buying Land in Costa Rica . . . .. . . Download pdf of Frequently Asked Questions
• How do I purchase land at Palm Springs?
• How is title transferred?
• Can I purchase land with other parties?
• What are the closing costs?
• What are the property and capital gains taxes?
Property taxes (Municipal Taxes) are .25% of the declared property value. For example, for a property price of $100,000, the property tax is $250 annually. The municipal tax is administered at the municipal level. The amount is small and varies depending on the type of property and location. Taxes are paid quarterly and must be shown to be fully paid immediately prior to transferring title.
An incentive for foreign investment is that there is no capital gain tax. The Costa Rican government will not tax you on profit from the future sale of your property as long as this is not undertaken as a means of business. You would be obligated to pay taxes on any "declared" earnings being brought back to your country of citizenship.