Jaco Beach Real Estate Taxes

If you are accustomed to paying a heavy tax burden and condo property transfer tax when you sell property, you will be pleasantly surprised at the relatively low taxation in Costa Rica.

Similar to U.S. and Canadian taxation, condo property taxes are administered by the Municipality with jurisdiction. In the case of the Flamingo-Brasilito-Tamarindo area and Jaco Beach, it is the Municipality that assesses and collects real estate taxes in Costa Rica.

The good news is that country-wide, the rate of condo property taxation is only 0.25% of the recorded value. For example, a property with a recorded value of $200,000 would have an annual real estate tax of only $500.

Secondly, when you sell property in Costa Rica, the transfer is subject to a tax called " Impuesto de Traspaso" of 1.5% of the registered value. In addition, various documentary stamps must be attached to the transfer deed called "Escritura" which add about 1.1% to the total tax liability.

These techniques are common practice but should be undertaken only under the expert guidance of a competent Costa Rican attorney and tax advisor.