Costa Rica – Selling Property

What are the steps involved in selling property yourself in Costa Rica?

Conducting a private sale in Costa Rica — without involving an estate agent — is fully permitted under local law and follows a defined sequence of steps. Although no agent is needed, a licensed Notary Public and a qualified attorney are obligatory in order to complete and officially register the transfer. The following is a step-by-step guide to the private sale process.

1. Assemble your documentation. Pull together all the necessary paperwork: a registered title confirming ownership (along with any corporate documentation if the property is owned through a company), an official cadastral survey (Plano Catastrado) showing the boundaries on record with the National Registry, a valid government-issued ID (passport or cédula), and proof that all municipal taxes and fees have been settled.
2. Resolve any outstanding financial obligations. Any unpaid property taxes should be cleared before you put the property on the market. The Public Registry will refuse to record a transfer deed unless a certified letter from the local municipality is produced showing that all property taxes and assessments have been paid up to the closing date.
3. Establish your asking price and begin marketing. Study comparable recent sales in your area, then advertise on Costa Rican property websites and international listing platforms. Combining listings on well-known local portals with targeted international marketing — and using social media to engage potential overseas buyers — will help maximise your reach.
4. Negotiate and accept an offer. When buyer and seller reach agreement on a price, the buyer or their representative will generally submit a Letter of Intent (LOI) setting out the core terms: the proposed price, the duration of the due diligence period, and the anticipated timeline to close.
5. Execute a formal purchase and sale agreement. The offer must be documented in a written agreement that clearly captures all terms and conditions. A notary drafts the purchase and sale agreement, which becomes the legally governing document for the transaction. It is standard practice for the buyer to place the agreed deposit into an escrow account at the time of signing; the agreement carries no legal force until that deposit is received.
6. Allow for the due diligence period. The buyer’s attorney will verify the property’s title as recorded in Costa Rica’s Public Registry, review the cadastral survey, and examine the chain of ownership. They will also confirm the property tax position with the local municipality and check with SINAC (National System of Conservation Areas) to establish whether the property falls within any protected zone or national park.
7. Meet anti-money laundering obligations. Every party to the transaction must go through a Know Your Customer (KYC) process. This is a legal requirement across Costa Rica’s real estate sector under SUGEF regulations, and is designed to promote transparency and prevent money laundering.
8. Attend closing before a Notary Public. Every property sale in Costa Rica requires attorney involvement, as the transfer must be authenticated by a Notary Public who confirms all documents are in order and supervises the payment of applicable taxes and fees. The Notary Public prepares and registers the transfer deed (escritura), which both parties sign before it is submitted to the National Registry for official recording.
9. Register the transfer after closing. Once closing is complete, the notary lodges the title transfer with the National Registry on the buyer’s behalf. This process normally takes 10 to 15 days. The seller should keep a certified copy of the transfer deed to demonstrate the provenance of the transaction to their bank.

Do most sellers in Costa Rica use an estate agent, or is private selling common?

Although selling independently is legally permitted in Costa Rica, most sellers — especially those targeting international buyers — elect to work with a real estate agent. This preference stems more from market dynamics than from any legal obligation.

An experienced agent brings familiarity with local conditions, access to buyer networks and listing databases, and useful perspective on pricing strategy. That said, Costa Rica has no national Multiple Listing Service (MLS), which means choosing an agent with strong local credibility and effective marketing resources is particularly important.

Because there is no single centralised listing hub, some sellers conclude that engaging multiple agencies will boost their property’s exposure. An open listing arrangement allows several agents to market the same property simultaneously, with only the agent who ultimately closes the deal earning a commission — this can widen visibility but may lead to inconsistent pricing across listings. An exclusive listing arrangement grants a single agent or agency the sole right to market the property, which tends to deliver a more cohesive experience and clearer accountability.

Costa Rica’s property market differs markedly from places like France or Spain, where notaires or sophisticated online portals play a significant self-service role. Here, the market is relationship-driven and dominated by private agencies. Selling can be a slow process that demands patience and consistent marketing effort. The pool of active buyers is considerably smaller than in many comparable markets, and it is far from unusual for a property to sit on the market for two years or longer; location is a decisive factor, with properties near popular tourist destinations typically selling in less time.

The tourist high season — running from December through April — tends to bring more active buyers to the market, making this window a potentially favourable time to launch a listing.

How does capital gains tax work when selling property in Costa Rica?

Costa Rica brought capital gains tax (CGT) on property sales into force on 1 July 2019. The rules are generally more seller-friendly than those in many other jurisdictions, particularly for primary residences and properties acquired before the legislation took effect. Always verify current rates directly with the Ministerio de Hacienda (Costa Rica’s national tax authority).

Primary residence exemption: Sellers of their primary home in Costa Rica are not subject to capital gains tax, regardless of the size of the gain. To qualify, the owner must demonstrate that the property served as their main residence for 183 or more days in the year. Some sources indicate that this exemption may only be claimed once every three years — confirm the precise conditions with a qualified local tax adviser.

Standard rate (as of 2025): A rate of 15% applies to the profit made on a sale, calculated by deducting the original purchase price from the sale price. This rate covers investment properties, holiday rentals, commercial real estate, and secondary homes.

Transitional rate for pre-July 2019 properties: Properties acquired before 1 July 2019 benefit from an alternative calculation. Sellers may choose to pay either the standard 15% on the net gain or a flat rate of 2.25% of the total sale price — whichever produces a lower liability. As an illustration, a property bought for $250,000 and sold for $500,000 could attract a tax of $11,250 (2.25% of $500,000) rather than $37,500 (15% of a $250,000 gain) — a meaningful saving.

Lowering your taxable gain: Verified capital expenditure on a property — such as construction, renovation work, and landscaping — can be offset against the taxable gain, provided each item is supported by official electronic invoices (facturas electrónicas). Maintaining thorough records of property-related expenditure from the outset is therefore advisable, as good planning well before a sale can meaningfully reduce the tax bill.

Commercial properties and business activity: Where companies engaged in active business operations are involved, the applicable tax rate rises to 30%. Passive capital gains remain taxed at 15%. The correct rate depends on the acquisition date, the nature of the asset’s economic use, and whether the property is residential or commercial.

Non-resident sellers: Additional withholding rules apply when the seller is not domiciled in Costa Rica. A non-domiciled person is a foreign individual who spends fewer than 183 days per year in the country, or a foreign entity not registered there. In such cases, the law obliges the buyer to withhold 2.5% of the sale price as a tax compliance mechanism. This withholding is mandatory and must be remitted before the property transfer can be registered.

Costa Rica has Double Taxation Agreements (DTAs) with just four countries: Spain, Germany, Mexico, and the United Arab Emirates. Sellers based elsewhere should take specialist cross-border tax advice to understand how any gain on their overseas property will be treated in their country of residence.

Are there other taxes or costs involved in selling property in Costa Rica?

In addition to capital gains tax, sellers in Costa Rica must account for a range of other costs. Some — such as the transfer tax and registration fees — are conventionally shared with the buyer, while others, notably agent commission, fall to the seller. All figures below are indicative as of 2025; always verify current rates with your notary or the Ministerio de Hacienda.

The transfer of real property in Costa Rica attracts a property transfer tax of 1.5% on the total transaction price. Only a notary public holds the authority to facilitate property transfers, and professional fees for this service typically fall between 1.25% and 1.5% of the property’s value.

Real estate commissions vary depending on the scope of services provided and the nature of the property. Standard commissions generally range from 6% to 10% of the sale price and are almost always paid by the seller. The commonly cited all-in figure, once 13% VAT is applied to a 6% commission, comes to approximately 6.78%.

Any unpaid property taxes or condominium fees outstanding at the time of sale are the seller’s responsibility to clear before closing. The annual property tax is set at 0.25% of the value on record with the municipality.

A luxury tax — the Impuesto de Solidaridad — also applies to properties whose assessed value exceeds approximately $233,589 USD. Since this threshold is revised periodically, sellers should confirm the current figure with the Ministerio de Hacienda.

At the closing table, the escrow agent releases funds to the seller, the real estate agent, the notary, and any other designated recipients. Using a reputable, regulated escrow service is strongly recommended, particularly for cross-border transactions.

What legal requirements must sellers meet in Costa Rica?

Costa Rica’s property law draws on civil law traditions similar to those found across much of Latin America and continental Europe, rather than the common law systems used in some English-speaking countries. Sellers face practical obligations that, while not especially burdensome, must be met to avoid delays or complications.

Equal rights for foreign sellers: Foreign nationals enjoy precisely the same rights as Costa Rican citizens when it comes to purchasing, holding, and selling real estate. There are no ownership restrictions based on nationality, and residency status is not a prerequisite for selling.

Clean, registered title: Before a sale can move forward, the property’s title must be examined to confirm the seller’s legal ownership and to identify any liens, encumbrances, or outstanding disputes. While Costa Rica maintains a public database of property titles and ownership histories, engaging a qualified attorney to carry out this review is strongly advisable. Title registration is managed by the Registro Nacional (National Registry).

Municipal tax clearance certificate: The Public Registry will not process a transfer deed without confirmation that all taxes and registration charges have been settled. A certified letter from the relevant municipality — showing that the seller’s property tax and municipal assessments are paid in full up to the closing date — is a mandatory component of the transaction.

Mandatory Notary Public: Attorney involvement is a legal requirement in every Costa Rican property sale, as the transfer must be authenticated by a Notary Public who verifies all documentation and oversees the payment of applicable taxes and fees. Uniquely, Costa Rica reserves the role of notary exclusively for qualified lawyers, who must additionally hold an advanced qualification in notarial and registry law.

Environmental and zoning considerations: Costa Rica’s biodiversity and environmental regulations are among the most stringent in the region. Sellers should assess whether their property is subject to any environmental designations — such as proximity to wetlands, protected reserves, or ecological corridors — that could affect development rights or complicate a sale.

Beachfront and coastal properties: Coastal real estate is subject to a distinct legal regime. The first 50 metres landward from the high tide line is classified as public land that cannot be privately owned. Properties within the Maritime Terrestrial Zone (MTZ) that are operated under concession arrangements follow a separate legal framework, and specialist legal advice is essential before proceeding with any such sale.

Unlike some countries — particularly those in the EU — where sellers are required to produce Energy Performance Certificates or habitability certificates before a property can be listed, Costa Rica currently imposes no equivalent requirements at the national level. Check with a licensed local attorney, as municipal-level rules can differ.

How does the exchange and completion process work in Costa Rica?

The Costa Rican completion process is structured differently from those in countries such as the UK, where exchange and completion are two separate legal stages, or the United States, where title insurance companies typically manage closings. In Costa Rica, a single Notary Public oversees and formalises the entire transfer in one closing event.

The purchase and sale agreement: Once an offer is accepted, a Costa Rican attorney draws up the formal purchase and sale agreement — a legally binding document that sets out every condition governing the transfer of the deed. It is standard practice for the buyer to place the agreed deposit into an escrow account at the time of signing this agreement.

Due diligence period: This phase involves a thorough legal examination of the property to confirm that the title is unencumbered, free of disputes, and properly registered. Surveys, building inspections, and other professional assessments are carried out during this stage. If the property is owned through a corporate entity, that company is also investigated for any legal liabilities.

Closing: Ownership passes from seller to buyer through a transfer deed (an escritura) executed before a Notary Public, who in Costa Rica must simultaneously be a practising attorney. The notary prepares and lodges the transfer with the Public Registry at closing. All deeds executed within Costa Rica’s provinces must be filed with the Public Registry.

Transfer of funds: The buyer wires the purchase price, transfer taxes, and legal fees to the escrow agent’s account. At closing, the escrow agent distributes the funds to the seller, the agent, the notary, and any other party entitled to payment. Wire transfers are the standard mechanism, though processing can take several days given Costa Rica’s banking procedures.

Post-closing registration: After closing, the notary submits the title transfer to the National Registry on the buyer’s behalf, a process that normally concludes within 10 to 15 days.

Overall timeframe from offer to completion: The total duration of a sale depends on the property’s location, condition, asking price, and the state of demand in the local market. Properties in sought-after tourist areas tend to move more quickly than those in rural or remote locations, and with accurate pricing and effective marketing, the complete process can span anywhere from a few months to considerably longer.

Is property exchange or part-exchange an option in Costa Rica?

Direct property swaps — where one seller trades their property for another in lieu of a conventional cash transaction — are not a common or formalised feature of Costa Rica’s real estate market. Unlike some European markets or developer-led part-exchange programmes found in other jurisdictions, Costa Rica has no dedicated legal framework or regulatory structure specifically governing property exchange arrangements.

That said, such transactions are not prohibited by law. Because Costa Rican property law is grounded in civil law principles — broadly comparable to approaches taken across Latin America and parts of Europe — parties can contractually agree to exchange properties rather than conducting a cash sale. Any such arrangement would still need to be formalised before a licensed Notary Public and registered with the Registro Nacional, following the same legal pathway as a standard property sale.

Foreign sellers contemplating a part-exchange should bear in mind several key practical points: both properties must carry clear, unencumbered titles; an independent valuation of each property is necessary to establish whether any balancing payment is required; and specialist legal advice on the tax implications is essential, since capital gains tax would remain applicable to any gain realised on the property being transferred. Given how uncommonly these transactions arise in Costa Rica, engaging a local attorney with experience in structuring non-standard real estate deals is strongly advisable.

What should foreign sellers know about repatriating sale proceeds from Costa Rica?

Costa Rica does not impose formal capital controls restricting the outward transfer of funds arising from a property sale. In practice, a foreign seller is generally free to send the net proceeds abroad once the transaction is finalised. However, there are important practical, tax, and compliance matters to consider before doing so.

No capital controls, but documentation is essential: While Costa Rica’s banking environment is relatively open, financial institutions are bound by rigorous anti-money laundering obligations overseen by SUGEF, the country’s financial regulatory authority. Sellers must retain a certified copy of the transfer deed to demonstrate the legitimate origin of the funds when instructing their bank to transfer proceeds internationally. Where buyer and seller agree to transfer the purchase price directly between accounts, the buyer must also provide a sworn declaration explaining the source of the funds, backed by supporting documentation.

Withholding obligations for non-resident sellers: Where the seller is not domiciled in Costa Rica, the buyer is legally required to withhold 2.5% of the sale price as a tax compliance measure. This withholding must be paid before the property transfer can be registered and functions as an advance against any CGT liability, which should subsequently be reconciled through a formal tax return.

Double taxation agreements: Costa Rica has Double Taxation Agreements with only four countries: Spain, Germany, Mexico, and the United Arab Emirates. Sellers residing in countries without a DTA should obtain specialist cross-border tax advice to understand how any gain will be treated in their jurisdiction of tax residence. This is especially relevant for individuals who may also face capital gains reporting requirements in their home country on top of any CGT paid in Costa Rica.

Currency considerations: Property transactions in Costa Rica are almost exclusively denominated in US dollars, even though the national currency is the Costa Rican colón. When converting proceeds and transferring funds internationally, using a specialist foreign exchange service rather than a standard bank transfer can yield materially better rates and lower transaction costs. Compare providers carefully and confirm that any service used is appropriately regulated in your jurisdiction.

For up-to-date guidance on fund transfers, consult the Ministerio de Hacienda, your Costa Rican attorney, and a currency transfer specialist with experience in Costa Rican transactions.

Frequently asked questions

How long does selling a property in Costa Rica typically take from listing to completion?

The time a property spends on the market depends largely on how competitively it is priced and how effectively it is marketed. Even under favourable conditions, the buyer pool is smaller than in many other markets, and it is entirely normal for properties to remain listed for two years or more. On the Nicoya Peninsula in 2024, the average time on market stood at 471 days. Once an offer is agreed and the purchase and sale agreement is signed, the legal process through to completed registration typically takes between four and eight weeks, depending on the complexity of due diligence and current workload at the registry.

Can I sell my Costa Rica property remotely without travelling there?

Yes — closing can take place through a Power of Attorney granted to a trusted representative in Costa Rica, authorising that person to sign the closing documents on your behalf. Alternatively, the documents may be executed before a licensed Notary Public at the nearest Costa Rican consulate and dispatched to Costa Rica by courier. In either case, the power of attorney must be properly notarised and authenticated through the Costa Rican consulate in your country or via an apostille procedure.

What happens if the buyer pulls out after signing the purchase agreement?

The outcome depends on the specific terms negotiated in the purchase and sale agreement. In most cases, if a buyer withdraws without a legally recognised reason after depositing funds into escrow, the seller is entitled to retain that deposit as agreed liquidated damages. The contract should also specify clearly any due diligence contingencies under which the buyer would be permitted to withdraw without financial penalty. Your attorney should negotiate and document these provisions carefully before any agreement is signed.

Do I need to be a resident to sell property in Costa Rica?

No. Foreign nationals hold exactly the same property rights as Costa Rican citizens and face no restrictions on selling real estate. Residency is not required either to own or to sell property in Costa Rica. Your residency status will, however, determine how you are classified — as domiciled or non-domiciled — for tax withholding purposes at the closing table.

What is the role of escrow in a Costa Rica property sale?

Once the purchase and sale agreement is signed, it is customary for the buyer to place the agreed deposit into an escrow account — the agreement does not carry legal weight until this deposit is received. Escrow funds are usually transmitted by wire transfer, though the process may take several days due to the procedures of Costa Rican banks. Using a reputable, regulated escrow provider is strongly recommended for all international transactions, as it protects both parties throughout the process.

Can a property held by a Costa Rican corporation (Sociedad Anónima) be sold differently?

When real estate is held through a Costa Rican corporation, it is technically possible to transfer the shares of that entity rather than the property itself. While this approach was once used to avoid transfer tax, legislative changes have largely removed that advantage, and most attorneys now recommend a straightforward deed transfer. Many foreign owners hold property through a Sociedad Anónima (S.A.) because this structure can streamline inheritance and certain transactional matters. Specialist legal advice on the most appropriate and tax-efficient structure for your circumstances is always worthwhile.

Are there any specific certificates or inspections required before listing a property for sale?

Costa Rica does not currently mandate pre-sale certificates comparable to Energy Performance Certificates required in EU countries or the gas and electrical safety certificates required in certain other jurisdictions. However, sellers must confirm that all municipal property taxes are paid and current, that the title is clear and properly registered, and that any applicable permits — for example for commercial use or existing construction — are in place. A local attorney can advise on any requirements specific to your municipality or property type.

Which official sources should I consult for the most up-to-date information on selling property in Costa Rica?

For capital gains tax rates and rules, the authoritative source is the Ministerio de Hacienda. For title searches, registered ownership records, and transfer registration, use the Registro Nacional. Questions about property boundaries and survey plans should be directed to CATASTRO Nacional. To determine whether a property falls within a protected area or national park, contact SINAC (National System of Conservation Areas). Throughout the entire process, a licensed Costa Rican attorney with qualifications in notarial and registry law remains the most essential professional to have by your side.