Key Facts for Property Sellers

Selling real estate in Costa Rica doesn’t just involve finding the right buyer and closing the deal—it also comes with certain tax responsibilities. One of the most important is the capital gains tax, which applies in many situations when a property changes hands. Here’s what you need to know before listing your home.

How Capital Gains Are Taxed

• The standard rate is 15%, calculated on the profit you make (the difference between your purchase price and your selling price).
• For people selling a property for the very first time under this law, there’s an option to pay a flat 2.25% on the total sales price instead of 15% on the gain.
• If the property is owned through a financial investment fund, the tax rate is higher at 20%.

Exemption for Your Primary Home

Costa Rica law makes an important exception: if the property being sold is your main residence, you are not required to pay capital gains tax. This allows homeowners to sell their primary house without facing a tax bill on the proceeds.

Non-Resident Seller Rules

Foreign sellers who do not reside in Costa Rica face a different process. In these cases, the buyer is legally responsible for withholding the capital gains tax and paying it directly to the Ministry of Finance. This ensures the government receives the correct amount, even when the seller lives abroad.

Filing Requirements

Sellers must also declare the transaction through the Ministry of Finance’s online platform using Form D-162 (“Declaration of Capital Gains and Losses”).

Example scenario: Imagine you purchased a property for $500,000 and later sold it for $800,000. The taxable gain would be $300,000. At the standard 15% rate, the tax would come to $45,000. In some cases, however, you may be able to choose the alternative 2.25% calculation instead.

Why It Pays to Get Advice

The rules may look simple at first, but factors like exemptions, residency status, and ownership structures can make a big difference. Professional advice is key to ensuring you pay the right amount—and don’t pay more than you should.

At Luxury Homes Costa Rica, we’re here to guide you through not only the sale of your property but also the legal and financial considerations that come with it. We’ll connect you with trusted experts who can help you handle capital gains tax efficiently and correctly.

Browse our listings: www.luxuryhomescr.com
Sign up for our newsletter: Join here