Standard closing costs are:
Notary Public fee: 1% for transactions higher than $54,000 USD (approximately)
Transfer taxes: 1.5%
Legal stamps: 0.9%
There would be some small differences based on the price and additional fees If the property has a mortgage that need to be removed or other conditions that need to be corrected. There are also other fees associated with other services like escrow accounts (average of 0.25% of the closing price with a minimum fee of $500 USD)
There are also more complex transactions (commercial transactions for example) that will have additional expenses and professionals to get involved.
Real estate commission is usually paid by the seller.
Real estate taxes in Costa Rica are 0.25% (0.0025).
Luxury homes with a value in excess of $235,000 USD (approximate amount will change based on exchange rate) pay a progressive tax over the excess. Please contact your accountant for assistance calculating your taxes as depreciation can be applied. As an example if you have a home valued at $1,500,000 USD you will pay $3750 USD on regular taxes and the luxury tax will be:
- The excess of $359,306 USD that go from $235,000 USD to $594,306 will pay a 0.25% = $898.26
- The excess of $597,865 USD from $594,306 USD to $1,192,171 USD will pay a 0.30% = $1793.59
- The excess of $307 ,829 USD from $1,192,171 USD to $1,500,000 USD will pay a 0.35% = $1077.40
The total luxury tax will be $3,769.25 USD
Be aware capital gain taxes started in 2019, so you most now pay capital gain taxes when selling your property of 15% on the capital gains or a 2.25% of the total sales price (this option is currently available for the 1st resale after the new tax came into effect and some restrictions apply.
Running a holiday sale or weekly special? Definitely promote it here to get customers excited about getting a sweet deal.
An annual corporation tax applies to all corporations: both active and inactive. This is very important because after 3 years of not paying this tax your corporation will be closed and a complex procedure is required to transfer the title of your property to a new corporation or your own name. Avoid the headache and the risk. Pay your taxes on time
In 2019 a shareholders registration started and became mandatory, penalties for no going through the registration process on time are high, the new deadline for the registration is March 31, 2020. Starting in April 2020 you will pay 50% of the penalty and from May 2020 on a full penalty will apply .
In order to complete the shareholders information you need to apply for a digital signature, for information on how to obtain your certificate go to: https://www.soportefirmadigital.com/web/en/ (happily this website does have an English version) and then go to https://www.centraldirecto.fi.cr/Sitio/CentralDirecto/Inicio/RegistroDeAccionistas (again no english version so you might want to get your lawyers assistance.
HOA Fees in a condominiums are mandatory, you cannot stop paying if you don't like the management, it most be changed through a scheduled vote in an general assembly or you can deposit the monthly HOA fee to the court, but do not stop paying your HOA fees.. So that you have a good understanding of the importance of been up-to-date with your HOA Fees, it has a priority over all other liens or claims on a property in the event of default, including first mortgages.
Property insurance is not required unless you are financing your property, however it is so inexpensive that it might be worth considering.
Reach out to us and let us know what your questions are, we will start working in a FAQ page with your questions.
All information is intended as a general guide only, please verify all information before making decisions. Pictures for illustrative purposes only. If you find inaccuracies on the information please reach out to us and provide supporting information. Copyright © 2020 IMINDS Brokers S.A. All rights reserved.