Property-Related Taxes in Costa Rica

Nonresident individuals are generally subject to Costa Rican tax only on income derived from Costa Rican sources, including income from real estate located in Costa Rica. Individuals are generally taxed separately for income tax purposes.

Rental income derived from Costa Rican real estate is generally subject to the real estate capital income tax regime. Capital gains from the disposal of Costa Rican property are also generally taxable. Costa Rica applies a territorial tax system, so the tax treatment of a nonresident individual is principally concerned with income and gains arising from Costa Rican sources.

Income and Rental Income Tax

Rental income from real estate located in Costa Rica is considered Costa Rican-source income and is therefore taxable in Costa Rica even when the property owner is a nonresident.

Rental income generally falls under the real estate capital income regime and is subject to tax at a rate of 15% on taxable rental income. A standard deduction equal to 15% of gross rental income is generally allowed, meaning that the tax is ordinarily imposed on 85% of gross rental income. This produces an effective tax rate of approximately 12.75% of gross rental income under the standard regime.

Capital Gains Tax

Capital gains arising from the sale of Costa Rican real estate are generally subject to tax at a rate of 15% on the taxable gain. For property acquired before 1 July 2019, the taxpayer may generally elect, on the first taxable sale, to pay tax at 2.25% of the gross selling price instead of applying the standard capital gains regime.

When Costa Rican real estate is sold by a non-domiciled owner, the purchaser is generally required to withhold 2.5% of the property's selling price as a payment in connection with the seller's capital gains tax liability. Specific exemptions may apply, including in certain circumstances involving an individual's habitual residence.

Capital Gains Tax

Capital gains are generally not taxed in Costa Rica. However, gains derived from habitual transactions, meaning repeated or business-like property sales, are subject to capital gains tax at a flat rate of 15%.

Corporate Taxation in Costa Rica

The standard corporate income tax rate in Costa Rica is 30% on net taxable income. Costs and expenses that meet the applicable requirements and are incurred in generating taxable income are generally deductible in determining the taxable profit.

For the 2026 fiscal year, companies with annual gross income not exceeding CRC 119,174,000 qualify for reduced progressive corporate income tax rates. The rates are applied to net taxable income as follows:

• 5% on the first CRC 5,621,000.
• 10% on the portion exceeding CRC 5,621,000 up to CRC 8,433,000.
• 15% on the portion exceeding CRC 8,433,000 up to CRC 11,243,000.
• 20% on the portion exceeding CRC 11,243,000.

Companies with annual gross income exceeding CRC 119,174,000 are generally subject to the standard 30% corporate income tax rate.

Property Buying and Selling Costs in Costa Rica

Annual Property Tax

Real Estate Tax (Impuesto sobre Bienes Inmuebles)

Real estate in Costa Rica is generally subject to an annual municipal property tax calculated on the registered value of the property. The standard tax rate is 0.25% of the property's taxable value. The tax is administered by the municipality in which the property is located, and payment procedures and installment schedules may vary by municipality.

Certain high-value residential properties may also be subject to the separate Solidarity Tax (Impuesto Solidario), commonly referred to as the luxury-home tax, where the applicable statutory thresholds are exceeded.