Costa Rica Capital Gains Tax on Property: What Sellers Pay

The 15% rate, the one-time 2.25% option, the primary home exemption, and the 2.5% withholding, explained in plain English.

When you sell property here, the Costa Rica capital gains tax is 15% of your profit. Owners who bought before July 1, 2019 can instead choose a one-time flat 2.25% of the gross sale price. Your habitual residence is exempt, and buyers must withhold 2.5% when the seller is not a Costa Rican tax resident.

We sell homes and condos in Playas del Coco and Ocotal, and this question comes up at almost every listing appointment. The rules are simpler than most sellers expect, but the details decide whether you pay a little or a lot. Here is how the tax works in 2026, in plain English. One thing up front: we are real estate brokers, not accountants, so treat this as orientation and confirm your own numbers with a licensed Costa Rican CPA before you sign anything.

What is the Costa Rica capital gains tax rate?

The standard rate is 15% of your net gain: the sale price minus what you paid for the property, plus documented improvements. The tax arrived with Law 9635, Costa Rica's big fiscal reform, and applies to sales from July 1, 2019 onward. Before that date, an occasional private sale by an individual was generally not taxed at all, which is why long-time owners are sometimes surprised the tax exists. PwC's Costa Rica tax summary confirms the 15% rate and the alternative option we cover next.

The 15% applies to the gain, not the price. If you bought a condo for $250,000 and sell it for $310,000 with no documented improvements, the taxable gain is $60,000 and the tax is $9,000.

Who qualifies for the one-time 2.25% option?

If you acquired your property before July 1, 2019, the law gives you a choice on the first sale after the reform: pay 15% of the gain, or pay a flat 2.25% of the gross sale price. You pick whichever is lower. It is a one-time option per asset, so once a property has changed hands after the reform, every later sale falls under the standard 15% rule.

Run both numbers, because the answer flips depending on how much the property appreciated:

• Big gain, old purchase: bought in 2012 for $180,000, selling for $420,000. The 15% route costs $36,000. The 2.25% route costs $9,450. Take the 2.25%.
• Small gain: bought in early 2019 for $360,000, selling for $400,000. The 15% route costs $6,000. The 2.25% route costs $9,000. Take the 15%.

Most of the pre-2019 owners we work with in Coco come out far ahead with the 2.25% option, but we have seen closings where the standard rate was cheaper. Five minutes with a calculator is worth real money here.

Is your primary home exempt?

Yes. The sale of your habitual residence (vivienda habitual) is exempt from capital gains tax. Guidance published by Costa Rican law firms notes the exemption can even apply when the home is titled to a corporation that exists only to hold it, which is a common setup here.

Be honest with yourself about what "habitual" means. A condo you rent to vacationers 40 weeks a year and visit for the holidays is not your habitual residence, and claiming the exemption on a rental property invites problems later. If you live in the home most of the year, you are likely fine. If your situation is mixed, ask your attorney before you list, not after you have an offer.

What is the 2.5% withholding when the seller lives abroad?

When the seller is not a Costa Rican tax resident, the buyer is required to withhold 2.5% of the total sale price and pay it to the tax authority. Under Resolution MH-DGT-RES-0051-2025, issued in October 2025, the withholding is declared and paid through the TRIBU-CR platform on Form 129 within the first 15 calendar days of the month after the sale. Miss it and you face interest, penalties, and a National Registry that may not process the transfer.

Two things sellers get wrong about this withholding. First, it is not an extra tax. It is an advance payment that counts toward your final capital gains bill, so if you owe less, your accountant reconciles the difference. Second, it applies to the price, not the gain, so cash flows at closing need to account for it. Most of our sellers in Playas del Coco are not tax residents, so this comes up at nearly every closing we handle, and the notary and escrow company build it into the settlement statement as a matter of routine.

How do you calculate the gain, and what can lower it?

Your gain is the sale price minus your acquisition cost and documented investments in the property. The word that matters is documented. Keep the electronic invoices (facturas) for your remodel, your pool, your new roof. A $40,000 kitchen renovation with proper invoices cuts your taxable gain by $40,000. The same renovation paid in cash with no paperwork cuts it by nothing.

One trap worth naming: in years past, some buyers registered a purchase price in the transfer deed that was lower than what they actually paid. That old shortcut becomes expensive at sale time, because your official cost basis is the registered value, and a low basis means a bigger paper gain. It is one more reason we tell buyers to hire a good lawyer and register the real price from day one.

What if the property is owned by a corporation?

Holding property through a Costa Rican corporation (an S.A. or S.R.L.) is common, and we explain why in our guide on how to buy a home in Costa Rica. When the corporation sells the property, the tax rules above still apply. Selling the shares of the corporation instead of the property itself is a different transaction with its own tax treatment, and it is exactly the kind of move you should not attempt without a CPA and an attorney who do this weekly. As noted above, the habitual residence exemption can survive corporate ownership when the company does nothing but hold your home, but have a professional confirm your structure qualifies.

Do you also owe tax back home?

Possibly. The United States taxes its citizens on worldwide income, including gains on foreign real estate, and Canada taxes its residents similarly. Foreign tax credits often prevent true double taxation, but the filings are real and the rules depend on your situation. Our post on Americans buying property in Costa Rica covers ownership basics, but for exit planning you want a cross-border accountant who handles both countries. We can point you to professionals our clients have used.

What this means when you sell with us

None of this should scare you off selling. Compared to many countries, Costa Rica's capital gains tax is moderate, the 2.25% option is generous to long-time owners, and the primary home exemption removes the tax entirely for many residents. What hurts sellers is finding out about the withholding or a low registered cost basis two weeks before closing.

When Expat Properties | CR takes a listing, we raise these questions on day one so your attorney and accountant have time to work. If you are thinking about selling in Coco, Ocotal, or anywhere on this coast, start with a free property valuation, or send us a note through our contact page and we will talk it through with you.

Frequently asked questions

How much is capital gains tax when you sell property in Costa Rica?

The standard rate is 15% of your net gain. If you acquired the property before July 1, 2019, you may instead pay a one-time flat 2.25% of the gross sale price on its first sale after the reform. Your habitual residence is exempt. Run both calculations with a Costa Rican CPA to see which applies.

Does the buyer really withhold 2.5% of the price if I am not a resident?

Yes. When the seller is not a Costa Rican tax resident, the buyer must withhold 2.5% of the total sale price and remit it through the TRIBU-CR platform within the first 15 calendar days of the following month. It is an advance payment credited against your final capital gains liability, not an additional tax.

Do I pay Costa Rica capital gains tax if my home is owned by a corporation?

Usually yes, the same rules apply when a corporation sells the property. However, the habitual residence exemption can still apply when the corporation exists only to hold your primary home. Selling the corporation's shares instead of the property is treated differently, so review your structure with a Costa Rican attorney and accountant first.

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