The Cost of Closing the Deal in Costa Rica

Closing costs in Costa Rica are relatively low: less than $2,000 per $100,000 of the sale price.

Part of the reason for the low cost is that the registered value of property is normally just a small fraction of its actual market value. To head off the possibility of future tax problems, make sure your attorney is aware of the disparity and tells you that the difference is within the normal range.

Many owners and developers will finance up to about 70% of your real estate purchase, and so will a few international banks in Costa Rica. The rate is usually about two or three points above what you’d pay in the U.S. or Canada. The best move is to consult with your U.S. accountant or financial adviser before deciding on how to handle financing.

The buyer and seller usually share equally in the closing costs, but this is open to negotiation. The American-European Real Estate Group of Costa Rica estimates that closing costs would be $1,800 for property with a transaction price of $100,000 and a registered value of $15,000.

This is the breakdown:

• Transfer tax (3% of the registered value): $450
• Public registry fee (0.05% of the registered value): $75
• Tax stamps, including $20 for a municipal stamp, $20 for a hospital stamp, $10 for an agrarian stamp, $2.50 for a bar association stamp, $2.50 for a fiscal stamp and $0.05 for a national archive stamp
• A notary fee of $1,250, based on 1.5% of first million colones of the sales price and 1.25% of the remainder.