Costa Rica introduced a capital gains tax on real estate in the 2019 tax reform. How much you owe depends on whether the home is your primary residence and when you bought it.
The standard rule
The gain on the sale is taxed at 15%. The gain is the sale price minus what you paid, and the purchase value can be adjusted for inflation.
Your primary home
The sale of your habitual residence is exempt. Your tax adviser can confirm whether your property qualifies.
Property bought before July 1, 2019
On its first sale, property bought before the reform took effect can pay a flat 2.25% of the sale price instead of 15% of the gain. Which option is better depends on your numbers.
Non-resident sellers
If you do not live in Costa Rica, the buyer withholds between 2% and 2.5% of the sale price at closing and pays it to Hacienda. That amount is credited against the tax you owe on the sale.
Tax rules change, so have a Costa Rican accountant or tax attorney review your sale before you list.
Request a free valuation or contact the Flamingo Beach Realty team to talk through your sale.
Frequently Asked Questions
Do I pay capital gains tax when I sell property in Costa Rica?
Usually yes: 15% of the gain, since the 2019 tax reform. Your primary home is exempt, and on its first sale, property bought before July 1, 2019 can pay a flat 2.25% of the sale price instead. Non-resident sellers have between 2% and 2.5% of the price withheld at closing, credited against the final tax.
