By Nathalia Romero Sanchez, Real Estate Writer, Collaboration and Revised by Ignacio Velázquez, 2CRRE Executive Assistant | Published on May 27, 2026
Every real estate project has its particular conditions, with multiple factors determining the course of the transaction and which pathway to take during the investment process. Having an overall understanding of which are the expected costs when coming to the closing of a transaction can give you a broader perspective on the market.
Beyond the price of Homes for sale in Costa Rica , investors should anticipate additional closing expenses typically ranging from 3% to 5% of the acquisition value.
Having this information in advance can help in your financial planning and prepare you correctly for investing in Costa Rica real estate. The closing costs presented here are an average transaction process:
Closing Costs of Costa Rica Real Estate Transactions Explained
1. Notary & Legal Fees. Transfer of Property
Rate: 1% to 2%
Who pays: Negotiable. Could be a Shared Cost (50 50) or paid by the buyer
The total notary and legal fees depend on the rate set by each professional and agreed upon with the client. Using the rate of our preferred Costa Rican law firm as an example, the notary and legal fees are calculated based on the greater of the purchase price or the registered value (“valor registrado”), after applying the applicable exchange rate.
For transactions with a value below 11,000,000 costa rican colones, the total notary and legal fees are 2%. For values exceeding 11,000,000 costa rican colones and up to 16,500,000 costa rican colones, the applicable fee is 1.5%. For values exceeding 16,500,000 costa rican colones and up to 33,000,000 costa rican colones, the fee is 1.25%. For transactions exceeding 33,000,000 costa rican colones, the total notary and legal fees are 1%.
Plus the Value Added Tax.
1.2 Value Added Tax (IVA) on the Notary and Legal Fees
Rate: 13% of the notary and legal fees
Notary and legal services are subject to Costa Rica’s 13% Value Added Tax (VAT).
This tax is calculated based on the notary and legal fees rather than the property's sale price; it remains a significant expense for high-value transactions.
2. Transfer Tax. (Impuesto de Traspaso)
Rate: 1.5%
Who pays: Negotiable. Could be a Shared Cost (50 50) or paid by the buyer
Government tax is calculated based on the greater of the purchase price or the registered value (“valor registrado”), after applying the applicable exchange rate. It is 1.5% of the greatest of the two.
4. National Registry Stamp
Rate: 0.5%
Who pays: Negotiable. Could be a Shared Cost (50 50) or paid by the buyer (whichever is chosen is usually repeated for the rest of the stamps outlined below).
This mandatory fee is collected by the National Registry (Registro Nacional) to formalize property registration. It is calculated at a rate of 0.5% based on either the registered fiscal value or the declared purchase price, whichever amount is higher after accounting for exchange rates.
5. Municipal Stamp
Rate: 0.2% | Who pays: Negotiable. Could be a Shared Cost (50 50) or paid by the buyer
A municipal stamp of 0.2% of the greater of the purchase price or registered value after accounting for the exchange rate. Collected in favor of local municipalities. Small but required for every transaction.
6. Agricultural Stamp
Rate: 0.15% | Who pays: Negotiable
The "Timbre Agrario" is a stamp tax used to finance the development programs for rural and agrarian projects, especially those done under entities involved with agriculture, which have historically had connections with INDER.
This agricultural stamp, despite its name, is not restricted only to agricultural lands. The Timbre Agrario stamp tax is normally paid while concluding real estate transactions and is part of the normal taxes paid during property transfer.
7. Bar Association Stamp
Rate: ~20,000 costa rican colones | Who pays: Negotiable. Could be a Shared Cost (50 50) or paid by the buyer.
A fee (approximately 20,000 costa rican colones, around $40–45 USD) payable to the Costa Rican Bar Association. The exact amount may vary depending on the purchase price or registered value.
8. Escrow Company Fees
Rate: Varies | Who pays: Negotiable. Could be a Shared Cost (50-50) or paid by the buyer.
The exact commission fee is a base flat fee that depends on the type of property, country regulations, number of parties, entities, and extra compliance steps. Escrow companies act as neutral third parties that safely hold money and documents until all conditions of a deal are met.
This depends on the chosen agency and the size of the transaction. Escrow companies manage the money, documents, and compliance for a transaction so that no one has to take a blind leap of trust. Never wire funds directly to the seller or to a law firm’s general account.
9. Real Estate Broker Commission
Rate: ~5–6% | Who pays: Seller. Depends on the nature of the transaction
The rate is negotiable but commonly falls between 5 6% of the sale price. Always confirm this in writing before listing your property. The 5 6% commission covers the full transaction process: property valuation, marketing, showings, negotiation, and coordination of all parties through to closing.
9.1. IVA on the Broker Commission
The 13% VAT also applies to the broker’s commission.
Closing Costs in Costa Rica: Real Estate Closing Costs Overview
| Cost Item | Rate | Calculated On |
|---|---|---|
| Notary & Legal Fees | ~1-2% | Sale Price or Registered Value |
| IVA on Legal Fees | 13% | The notary fee |
| Transfer Tax | 1.5% | Sale Price or Registered Value |
| National Registry Stamp | 0.5% | Sale Price or Registered Value |
| Municipal Stamp | 0.2% | Sale Price or Registered Value |
| Agricultural Stamp | 0.15% | Sale Price or Registered Value |
| Bar Association Stamp | ~?20,000 | (Approximate) |
| Escrow Company Fees | Varies | Fixed rate based on Transaction size and complexity |
| Broker Commission | ~5 6% | Sale price |
| IVA on Commission | 13% | Commission amount |
Registered Value or the Sale Price?
When you sell a property in Costa Rica, the government taxes and notary/legal fees are based on whichever number is greater: the price you declared in the sale or the official value the government has on file for that property (valor registrado).
The registered value is updated whenever there is a new deed. Therefore, many properties haven't had their registered value updated in years, so it sits far below what the property is actually worth on the market at the moment of closing (or in some cases, the registered value is greater when the sales price is lower than stipulated on the previous deed).
Budget 3% to 5% of the purchase price for closing costs
Closing costs depend on the total of the different stamps, legal fees, and mandatory documentation required for the transaction. These expenses encompass all the administrative and government requirements. Budget between 3% and 5% of the total purchase price to ensure all these obligations are met.
These costs are often discussed as a point of negotiation within a deal. Depending on the agreement reached, closing costs can be split between buyers and sellers.
The Importance of Due Diligence: Verify Before You Close
Before closing on any property of a Costa Rica real estate nvestment, confirm with your team that all taxes and fees are covered and there are no further encumbrances left. Any outstanding tax balance on the property transfers automatically to the new owner at the moment the deal is signed. Your attorney verifies this as a standard part of the due diligence process. Having a strong team on your side will protect you from costly mistakes and any other challenges you may face at the closing of your transaction. Having the right real estate advisory connects you with strong professionals who specialize in different areas of Costa Rica.