Property Taxes In Costa Rica

impuestos en propiedades en costa rica ley fortalecimiento publico costa rica comisiones bienes raices iva property taxes in costa rica

impuestos en propiedades en costa rica ley fortalecimiento publico costa rica comisiones bienes raices iva property taxes in costa rica

Do you have questions about taxes in Costa Rica when selling or renting properties? Here is a brief summary to guide you.

Capital gains tax in Costa Rica:

As of  July 1, 2019, any real estate in Costa Rica that is sold pays capital gains tax. This tax is equivalent to 15% on the profit. The first time the property is sold after July 1, 2019, the seller will be able to choose whether to pay 2.25% of the property’s value or 15% of the profit. All subsequent sales will pay 15% on the profit.

Tax on residential rentals in Costa Rica:

Regarding housing rentals, rents greater than 669,000 colones per month approximately (the equivalent of 1.5 base salary) will pay 13% VAT. The tax applies to the entire monthly amount paid. Rentals below 669,000 colones do not pay the tax.

Tax on commercial rentals in Costa Rica:

In the case of commercial property rentals, 13% VAT applies to the entire rental without exceptions. Small and medium-sized companies may have a differentiated treatment if they are registered with the MEIC.

Transfer tax in Costa Rica:

The transfer tax is equivalent to approximately 1.5% on the value of the transaction.

Attorney fees in real estate transactions in Costa Rica:

Attorney fees are approximately 1-2% of the property’s sale value.

Real estate broker commission taxes in Costa Rica:

The real estate broker commission fee is also subject to the payment of 13% VAT on the commission. For example, if the commission is $1000, then it would be $ 1000 + 13% VAT for a total of $1130.

We suggest you consult with your lawyer, financial advisor and / or accountant on issues related to this law and how it applies to each particular case.

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