Closing Costs for Sellers in Costa Rica: Your Essential Guide for 2025

Selling your property in Costa Rica should feel like a rewarding milestone—not a financial mystery. As seasoned real estate professionals serving US and Canadian clients for over a decade, Tony and I (Anna) have guided hundreds of sellers through this process. Unlike North America, Costa Rica’s closing cost structure has unique nuances that can surprise unprepared sellers. Let’s demystify exactly what you’ll pay and how to navigate this smoothly.

Why Understanding Seller Costs Matters Here

Costa Rica lacks a standardized MLS system, and closing practices blend civil law traditions with modern market realities. What you think you’ll net from your sale and what actually lands in your bank account can vary wildly without proper planning. In 2025’s shifting market (more on that later), savvy sellers use closing cost knowledge as a negotiation tool.

Breaking Down the Costs: What You’ll Pay as the Seller

1. Real Estate Commissions: Your Biggest Expense

• Typical Rate: 6% of the sale price + 13% VAT (sales tax)
• Total: Effectively 6.78% of the sale price
• Example: On a $500,000 sale, you’d pay $30,000 + $3,900 VAT = $33,900 

Why it’s higher than the US/Canada:

• No centralized MLS means agents invest heavily in individual marketing.
• Commissions cover photography, drone videos, multi-platform listings, and buyer vetting.

💡 Pro Tip: Negotiate exclusivity with a full-service agency like ours. Open listings often get minimal effort from agents.

2. Legal Fees: Don’t Skip Your Own Lawyer

While the buyer typically selects the notary (a specialized attorney), sellers need independent counsel to:

• Review purchase agreements
• Verify due diligence reports
• Ensure clean title transfer
• Protect against post-sale liabilities 

Expect to pay 1 – 2% of the sales price for robust legal representation.

3. Capital Gains Tax: The Silent Profit Eater

This catches many foreigners off guard. Costa Rica taxes property sale profits under two models:

• 15% on your net gain (sale price minus purchase price and documented improvements), or
• 2.25% of the total sale price (simpler, often cheaper for high-appreciation properties) 

Critical exemptions:

• If this was your primary residence for ≥ 3 years, you pay ZERO capital gains tax.
• If reinvesting proceeds into another Costa Rican property within 12 months, you may defer taxes.

Table: Capital Gains Tax Scenarios

4. Municipal & Luxury Taxes: Clear These First

Before closing, you must settle all property taxes:

• Annual Property Tax: 0.25% of the registered fiscal value 12
• Luxury Tax: 0.25%–0.55% on properties valued >$233,900 of the construction value (supports social housing). If the buyer requests confirmation that luxury taxes are upto date prior to closing you may need to hire an appraiser to determine if the property is subject to the luxury tax. Estimated cost $500-$1,000.

Delinquent taxes + penalties will be deducted from your sale proceeds.

5. Unexpected "Gotchas"

Budget 1–2% of sale price for:

• Corporation dissolution fees (if property held in a Costa Rican S.A. and you are not keeping the corporation)
• Title curative costs: Boundary disputes, squatter removals, or zoning violations discovered during due diligence. Rare but may happen, more often with vacant land.
• Escrow fees: If using third-party holding services ($500–$1,200). In most cases buyer pays these but sometime escrow feels are split 50/50.

Who Pays What? Negotiation Is Key

Unlike the US/Canada, Costa Rican customs allow flexibility:

• Traditional Split: Buyer pays transfer taxes/stamps (≈3.7%); seller pays commissions 
• 2025 Trend: In softer markets (like Central and South Costa Rica), buyers often request 50/50 sharing of all closing costs.

Table: Typical Closing Cost Allocation

Smart Strategies to Reduce Your Costs

1. Price Competitively: Overpriced homes languish 2+ years. Get a Comparative Market Analysis (CMA) to align with 2025 values .
2. Stage & Repair: Buyers here expect turnkey condition. A $5k paint job can net $25k more.
3. Go Exclusive: Multi-agency listings get lazy marketing. Our full-service approach includes targeted digital campaigns to qualified U.S./Canadian buyers.
4. Pre-Close Due Diligence: Resolve title issues before listing. We connect you with trusted attorneys.

The Closing Process: Timeline & Tips

1. Offer & Deposit: Buyer and seller sign a Purchase and Sales agreement, and Buyer submits 10% deposit into escrow within 7-10 days.
2. Due Diligence (21-30 days): Buyer’s attorney verifies title, surveys, liens. Inventory of items included in the sale is taken and the inspector makes a detailed home inspection. In case of vacant land, topographer does the study and buyer may also consult with other contractors regarding the future use of the lane. Use of Land (Uso de Suelo) and Permits’ checks are also usually part of the due diligence.
3. Signing Escritura: Before a notary public. Seller receives funds minus closing costs.
4. Registry Transfer (10–30 days post-signing): Notary files deed with National Registry.

Critical: Ensure your lawyer confirms the buyer’s funds are in Costa Rica before signing. International wire delays may affect the closing. For this and other due diligence reasons we always caution the sellers to not make firm plans regarding the closing date. In most cases the closing date is delayed from what originally planned. Be flexible or have a valid Power Of Attorney (POA) with someone to sign on your behalf. If using a POA, send it to buyer’s attorney right away to ensure they approve it for the closing.

Why 2025’s Market Impacts Your Closing Costs

Guanacaste’s correction (-36% in luxury homes ) means:

• Buyers have leverage to request cost-sharing concessions.
• Well-priced properties still sell: Coastal homes near tourist hubs move fastest.
• Cash offers are rising: Offer closing cost incentives to attract these buyers.

The Bottom Line: What You’ll Net

On a $500,000 sale (non-primary residence):

• Sale Price: $500,000
• Realtor Commission: -$33,900
• Capital Gains (2.25% option): -$11,250
• Legal/Misc Fees: -$5,000
• Estimated Net: ≈ $449,850

Ready for a Personalized Estimate?

Tony and I specialize in maximizing seller proceeds for expats. We’ll provide:

1. A Closing Cost Worksheet tailored to your property.
2. 2025 Pricing Strategy leveraging market shifts.
3. Vetted Attorney Recommendations.