How to Sell Your Property in Costa Rica: A Step-by-Step Guide
Selling property in Costa Rica (the “Land of Pura Vida”) is generally straightforward for foreigners, who enjoy the same property rights as locals. However, the process relies heavily on the National Registry and a specialized Notary Public.
Step 1: Valuation and Agent Selection
There is no centralized MLS (Multiple Listing Service) in Costa Rica, so pricing and visibility depend heavily on your choice of agent.
During the initial visit, your agent will:
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Verify the Plano Catastrado: This is the official survey plan. It must be registered with the National Registry to ensure your property boundaries are legally recognized.
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Confirm Title Status: Check for liens or “affectations” (such as protected wildlife zones) that might limit the sale.
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Marketing Strategy: Discuss a commission (typically 6% to 10%). Given the international buyer pool, digital marketing and high-quality drone footage are common.
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Determine Ownership Type: If the property is held in a Sociedad Anónima (S.A.) or SRL, you’ll need to decide whether to sell the property out of the corporation or sell the shares of the corporation itself.
Step 2: Due Diligence and Documentation
The buyer’s attorney will perform extensive due diligence. As the seller, you must have these “Paz y Salvos” (clearances) ready:
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Municipal Property Tax: Proof that the 0.25% annual property tax is paid to date.
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Corporate Tax & Luxury Tax: If applicable, proof that the “Solidarity Tax” (for luxury homes) and the annual “Corporation Tax” are current.
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Utility Clearance: Proof that water (often through an ASADA) and electricity bills are settled.
Step 3: The Purchase & Sale Agreement (PSA)
Once an offer is accepted, a formal Purchase and Sale Agreement is drafted.
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Earnest Money: A deposit (usually 10%) is placed into a registered Escrow account. In Costa Rica, using a government-regulated escrow (like STIB) is highly recommended for security.
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The “Arras”: Similar to other Latin markets, if the seller backs out, they typically return double the deposit; if the buyer backs out, they forfeit it.
Step 4: The Closing and the Notary
In Costa Rica, every property transfer must be legalized by a Notary Public who is also a licensed attorney.
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The Deed (Escritura): The Notary drafts the transfer deed in their “Protocol” book.
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Closing Costs: Traditionally, closing costs (taxes and notary fees) are split 50/50 between buyer and seller, though this is entirely negotiable.
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Taxes: The transfer tax is 1.5% of the sale price or the registered fiscal value (whichever is higher).
Step 5: Capital Gains and Withholding
Since 2019, Costa Rica has enforced a Capital Gains Tax (CGT) that sellers must account for at closing.
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Standard Rate: 15% on the net profit of the sale.
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Special One-Time Rate: If you owned the property before July 1, 2019, you may opt to pay 2.25% of the total sale price instead of 15% on the profit.
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Non-Resident Withholding: If you are a non-resident seller, the buyer is legally required to withhold 2.5% of the purchase price to ensure the tax office (Hacienda) receives the CGT.
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Primary Residence Exemption: If the property is your primary residence (where you live for 183+ days/year), you are typically exempt from Capital Gains Tax.
Step 6: Final Registration
After the closing meeting:
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The Notary submits the signed deed to the National Registry.
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The Registry processes the transfer (usually taking 1–3 weeks).
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Once the “Definitive Registration” is complete, the buyer is officially the owner, and the final title is issued.
Cost Breakdown at a Glance
| Item | Estimated Cost | Paid By |
| Real Estate Commission | 6% – 10% | Seller |
| Transfer Tax | 1.5% | Shared (50/50) |
| Legal/Notary Fees | ~1% – 1.25% | Shared (50/50) |
| Capital Gains Tax | 15% (of profit) | Seller |
| Registration Stamps | ~0.8% | Shared (50/50) |
Congratulations! You have successfully sold your property in Costa Rica.
