What are closing costs in Costa Rica?

Typically 3.6–4.4% of the price on a $300,000 purchase.

Buying property in Costa Rica as an American

Q: How is rental income taxed in Costa Rica?

Rental income tax (85% of gross): 15% applied to 85% of gross rent (effective 12.75%), filed monthly. Short-term lodging owes 13% VAT. A luxury home tax (0.25%–0.55%) applies when construction value exceeds about ₡143 million (2026). No comprehensive US–Costa Rica income tax treaty; the US still allows a Foreign Tax Credit for Costa Rican income tax.

Costa Rica has low closing costs and a modest flat tax on rent. Many listings are priced in US dollars. Land within 200 metres of the high-tide line is a government concession with restrictions for foreigners, and financing is hard to find.

Data last verified on October 19, 2026 · AbroadYield research desk – public sources cited in each section

Key numbers

Gross rental yield

5.0–9.0%

Closing costs

3.6–4.4%

On a $300,000 purchase

Tax on rent (gross basis)

15%

Rental income tax (85% of gross)

Entry prices from

$130,000

6–10 weeks to close

Can Americans buy?

Allowed

Foreigners have the same ownership rights as citizens, except in the Maritime Zone (200 m from high tide), which is concession land.

Pensionado: USD 1,000/month lifetime pension. Rentista: USD 2,500/month for 2 years or a USD 60,000 deposit. Investor: the USD 150,000 route (Law 9996) expired on 14 July 2026 and the threshold is reported to revert to USD 200,000; confirm with immigration (DGME).

Data last verified on October 19, 2026 · AbroadYield research desk – public sources cited in each section

Sources: Ministerio de Hacienda (Costa Rica); US Department of State – country information

How rent is taxed

15% applied to 85% of gross rent (effective 12.75%), filed monthly. Short-term lodging owes 13% VAT. A luxury home tax (0.25%–0.55%) applies when construction value exceeds about ₡143 million (2026).

No comprehensive US–Costa Rica income tax treaty; the US still allows a Foreign Tax Credit for Costa Rican income tax.

As a US taxpayer you also report the rent on Schedule E. Your free ranking estimates the combined effect for your state and income.

Data last verified on October 19, 2026 · AbroadYield research desk – public sources cited in each section

Sources: Ministerio de Hacienda (Costa Rica); PwC Worldwide Tax Summaries

Main risk

Beach land within 200 m of the shore is a concession, not freehold.

Short-term rentals are allowed. Law 9742 requires every non-traditional lodging to register with the tourism board (ICT) and hold a municipal licence, and 13% VAT applies to stays.

Data last verified on October 19, 2026 · AbroadYield research desk – public sources cited in each section

Sources: US Department of State – country information; Global Property Guide (yields, transaction costs)

Cities we cover

Escazú (San José)$2,331/m² · gross 6.4%
Tamarindo$3,441/m² · gross 7.3%
NosaraTo be verified$3,330/m² · gross 8.0%
Atenas$1,998/m² · gross 7.2%

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