Costa Rica maintains an open market for foreign investors, and non-residents enjoy the same legal rights to buy, own, and sell property as Costa Rican citizens. However, the process is governed by specific local regulations that require careful attention to tax compliance and documentation when Selling Property in Costa Rica as a Non-Resident.
1. The Legal and Regulatory Framework
In Costa Rica, real estate transactions are formalized through a Notary Public (who must also be an attorney). Unlike in some jurisdictions, the notary acts as a central figure to ensure the transfer is legal and properly registered with the Registro Nacional (National Registry).
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Ownership Structure: Many foreigners hold property through a Sociedad Anónima (S.A.) or S.R.L. corporation for tax and liability purposes. If your property is held corporately, you can sell either the property itself (transferring the title out of the corporation) or the shares of the company.
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Remote Transactions: You do not need to be physically present to sell. You can grant a formal Power of Attorney (Poder Especial) to a representative, which must be executed before a Costa Rican notary public.
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Due Diligence: Expect a 30–60 day due diligence period where the buyer’s attorney will conduct a title search, verify boundaries, and review corporate documents to ensure no “clouds” (liens or legal annotations) exist on the title.
2. Required Documentation
To ensure a smooth closing, you should prepare the following file in advance:
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Property Title: The official deed of ownership.
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Survey Plan (Plano Catastrado): An official map of the property boundaries registered with the National Registry.
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Tax Compliance: Proof that all municipal property taxes, garbage/street lighting fees, and (if applicable) corporate taxes are fully paid.
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Luxury Tax (Impuesto Solidario): If your construction value exceeds specific thresholds, proof of payment for this tax is mandatory; unpaid balances can block the sale.
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Identification: A valid passport or local cédula.
3. Financial Considerations
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Escrow: It is standard practice to use a professional escrow service (or a reputable attorney’s trust account) to hold the buyer’s 10% deposit during the contract phase.
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Capital Gains Tax: Generally, a 15% tax applies to the net profit from the sale.
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Note: If you acquired the property before July 1, 2019, you may have a one-time option to pay a flat 2.25% on the total gross sale price instead.
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Transaction Costs: Selling costs for the seller typically range from 2.5% to 5% in agent commissions, with additional legal/notary fees often totaling around 1%–1.5%.
4. Preparing for Sale: A Checklist
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Verify Your Title: Have your attorney pull a Literal from the National Registry to confirm the property is free of liens or “annotations”.
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Digitize Tax Records: Ensure all tax filings are current on the TRIBU-CR platform. Any outstanding debt or unfiled declarations will block the registration of the transfer.
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Appoint Local Counsel: While the buyer often selects the notary to draft the transfer deed, you should always retain your own legal counsel to review contracts and protect your interests.
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Professional Valuation: Use a 2026-based appraisal. Buyers today are highly analytical and rely on “price per square meter” metrics.
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Agent Selection: Since there is no national licensing requirement for real estate agents in Costa Rica, choose an agent with a proven track record, fluency in both Spanish and English, and a clear understanding of international marketing.
Disclaimer: This guide is for informational purposes. Real estate and tax laws in Costa Rica are subject to change. Always consult with a qualified local attorney or tax professional regarding your specific situation and property structure before proceeding with a sale.
Are you currently in the early stages of preparing your property for the market, or are you seeking recommendations for finding a local legal expert to conduct a preliminary title review?
