Costa Rica Property Taxes

Taxes should be a major consideration for people looking to make a move to Costa Rica improve their lifestyles.

Income taxes, sales taxes, property transfer taxes and property taxes should be carefully examined. Costa Rica taxes are not quite that complicated.

When buying a home in Costa Rica, property taxes and property transfer taxes must be considered. Costa Rica property taxes are only 0.25% of the recorded property value which is not always the real market value.

It is important to note that Costa Rica Property Tax Law requires homeowners to file a declaration (Declaracion de Bienes Inmuebles) with the Municipal government declaring the value of the home every five years.

Property Transfer Taxes.

When you buy or sell a property the property transfer tax (Impuesto de Traspaso) is 1.5% of the value indicated in the transfer deed or the registered tax value of the property, whichever is higher and will apply when the title of a property is transferred from the seller to the buyer.

This can be avoided when the property is owned in the name of a corporation, then you can buy and sell the corporation which would include the home. You must be careful to verify that their are no 'surprise' obligations associated with that corporation...