Closing Costs in Costa Rica: Who Pays What

The real numbers behind transfer tax, stamps, notary fees, and commissions, and who traditionally covers each one.

Closing costs in Costa Rica usually run about 3.5% to 4.5% of the purchase price. The buyer customarily pays them in most Guanacaste deals, though the law allows any split. The seller normally pays the real estate commission and any capital gains tax. Escrow, corporation setup, and due diligence can add to the total.

We walk buyers and sellers through this math every week in Playas del Coco, and the same question always comes up at the offer stage: who pays what? Here is the honest breakdown, line by line, so nothing at the closing table surprises you.

What do closing costs in Costa Rica include?

Four items make up the core of closing costs in Costa Rica:

• Transfer tax: 1.5% of the property value.
• Registry and legal stamps: roughly 0.8% to 1% combined.
• Notary fees: typically 1% to 1.5% on most purchases, set by a government fee schedule, plus 13% VAT on the fee.
• Extras: escrow, due diligence, and (if you use one) forming a corporation to hold the property.

Add it up and most buyers land between 3.5% and 4.5% of the purchase price. That is the number we tell clients to budget before they start negotiating, and it lines up with what closing attorneys such as Quatro Legal publish for direct property purchases.

How much are the transfer tax and registry stamps?

The transfer tax is 1.5%, established by Law 6999, and it is calculated on the higher of the agreed sale price or the fiscal value registered with the tax authority. There are no discounts for first-time buyers, retirees, or foreigners; everyone pays the same rate on a titled property sale.

On top of the transfer tax, the National Registry and a handful of institutions collect stamps when the new deed is recorded: the registry stamp (about 0.5%), plus smaller agrarian, fiscal, municipal, and bar association stamps. Together they add roughly 0.8% to 1%. Your closing attorney will itemize every stamp on the settlement statement, and you should ask for that itemization before you sign.

What does the notary cost?

In Costa Rica the transfer deed must be drafted and recorded by a notary public, who is always a licensed attorney. Notary fees are not freely invented; they follow a sliding scale set by executive decree (Decree No. 41457-JP). In practice that works out to roughly 1% to 1.5% of the price on the transactions we see, with higher percentages on very small deals. A 13% value added tax applies to the fee itself.

The notary usually also runs the title study and due diligence, which is exactly why picking your own lawyer matters. We wrote a full post on why hiring a good lawyer in Costa Rica is essential, and the short version is: the buyer normally pays the notary, so the buyer should choose the notary.

Who pays closing costs, the buyer or the seller?

The default rule in the notary fee decree says the parties split closing costs. In the real market, especially here in Guanacaste, the common custom is different: the buyer pays the closing costs (transfer tax, stamps, notary, escrow) and in exchange picks the closing attorney.

That said, everything is negotiable. Some deals close 50/50, which is closer to the letter of the decree. What matters is that the purchase and sale agreement states clearly who pays what, in writing, before anyone wires a deposit. If the contract is silent, you are inviting an argument at the closing table. We flag this in every offer we help draft.

What does the seller pay?

Sellers are not off the hook. Their side of the ledger usually includes:

• Real estate commission: commonly in the 5% to 6% range on coastal residential sales, plus 13% VAT charged on the commission itself. The seller pays it because the seller hired the brokerage.
• Capital gains tax: since Law 9635 took effect on July 1, 2019, gains are taxed at 15%. For an asset's first sale there is an option, under certain conditions, to pay 2.25% of the total sale price instead, which often favors owners who bought before mid-2019. PwC's Costa Rica tax summary confirms both rates.
• Mortgage cancellation: if the property carries a loan, the notary charges a fee to release the lien.

Tax outcomes depend on how the property was held and whether it was a primary residence, so we always tell sellers the same thing: confirm your exact liability with a licensed Costa Rican accountant or attorney before you list. We can introduce you to the professionals our clients use, but we do not give tax advice.

What extras should buyers budget for?

Beyond the core costs, plan for these:

• Escrow: most cross-border deals run funds through a licensed escrow company. Fees are commonly quoted as a flat amount, often in the range of $500 to $1,000 depending on the provider and deal size. Use an escrow provider registered with SUGEF, Costa Rica's financial regulator. This is not optional in our book; wiring a six-figure sum to a stranger's account is how horror stories start.
• Corporation setup: many buyers hold property in a Costa Rican corporation. Forming one typically costs about $750 to $1,500 in legal fees, and the entity carries small annual obligations afterward.
• Surveys and inspections: a topographic survey or a home inspection each cost a few hundred to about a thousand dollars. Money well spent, in our experience, and cheap compared to the problems they catch.

None of these are hidden fees. They are simply items that first-time buyers from the US and Canada do not always expect, because a title company handles much of this back home. Our guide on how to buy a home in Costa Rica walks through where each cost lands in the timeline.

What do closing costs look like on a $300,000 condo?

Here is a realistic estimate for a $300,000 titled condo purchase, using the percentages above:

• Transfer tax (1.5%): $4,500
• Registry and other stamps (about 0.9%): roughly $2,700
• Notary fee (about 1.25% plus 13% VAT): roughly $4,240
• Escrow: about $750

Total: roughly $12,200, or about 4.1% of the purchase price. Add a corporation and full due diligence and you can touch 5%. Every deal differs, and the stamps and notary tiers move with the numbers, so treat this as a planning figure and ask your attorney for a written quote on your specific purchase. If you are comparing Costa Rica to buying at home, our post on whether Americans can buy property in Costa Rica covers the bigger legal picture.

How do you keep closing day boring?

Boring is the goal. Get the cost split written into the offer, hire your own attorney, insist on a SUGEF-registered escrow, and ask for the itemized settlement statement a few days before signing, not at the table. That is the whole recipe.

We live and work in Playas del Coco, and we have sat through enough closings to know where the friction hides. If you are budgeting a purchase in Coco, Ocotal, or anywhere in Guanacaste, browse our current listings or send us your questions on WhatsApp. We will give you straight numbers for the exact property you are considering.

Frequently asked questions

Who pays closing costs in Costa Rica, the buyer or the seller?

By custom in most of Guanacaste, the buyer pays the closing costs (transfer tax, stamps, notary, and escrow) and chooses the closing attorney. The notary fee decree's default is a 50/50 split, and some deals close that way. The allocation is fully negotiable, so state it clearly in the purchase agreement before paying any deposit.

How much is the property transfer tax in Costa Rica?

The transfer tax is 1.5%, set by Law 6999. It is calculated on the higher of the agreed sale price or the property's registered fiscal value. Registry and legal stamps add roughly another 0.8% to 1% when the deed is recorded, so taxes and stamps together usually total about 2.5% of the price.

Do sellers pay capital gains tax when selling property in Costa Rica?

Usually, yes. Since July 2019 Costa Rica taxes capital gains at 15% of the gain, with an option in certain first-sale cases to pay 2.25% of the gross sale price instead. Exemptions can apply, for example on a habitual residence. Confirm your exact situation with a licensed Costa Rican accountant or attorney before listing.

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