Property tax in Costa Rica is based on the value of the property and is typically paid annually. The tax rate ranges from 0.25% to 1.5% depending on the location and type of property.
Capital Gains Tax (CGT)
- When selling a property in Costa Rica, the seller is subject to CGT. The tax rate is 13% on the difference between the sale price and the original purchase price.
Inheritance Tax
- Inheritance tax in Costa Rica is imposed on the transfer of property from the deceased to the heir(s). The tax rate ranges from 5% to 25% depending on the relationship between the deceased and the heir(s) and the value of the property.
Gift Tax
- Gift tax in Costa Rica is imposed on the transfer of property as a gift. The tax rate ranges from 5% to 25%, and is based on the value of the property and the relationship of the giver and receiver.
Tax on Property Income
- Income from renting out a property in Costa Rica is subject to income tax. The tax rate ranges from 10% to 30%.
Tax Advantages
- There are certain tax advantages in buying a house in Costa Rica. For example, individuals who purchase a property that is considered a “primary residence” may be eligible for a reduction or exemption on property taxes. Additionally, individuals who purchase a property in a designated “tourism zone” may be eligible for reduced CGT rates and other incentives.