Costa Rica: San JoséFlamingo Tamarindo Nosara


Due Diligence and Real Estate Taxes

May, 2021

Legal and technical searches (due diligence): Before any purchase, a due diligence may be performed by the Buyers' attorney, checking that all the paperwork of the property is in order and ensuring that there are no outstanding charges or taxes and there are no encumbrances or lines on the property. During the Due Diligence Period, the Buyers and Buyers' attorney shall have the right, but not the obligation, to perform a complete study on the Property, including but not limited to: Physical, Title & Survey, Confirmation of No Adverse Possession, cadastral or survey Plan, Boundaries, and Other Documents.

Real Estate Tax and Garbage Collection Fee: Property taxes are 0.25% of the purchase price or registered value whichever is greater; it can be paid a year in advance or quarterly to the Municipality where the property is registered, along with the garbage collection fee, ~US$ 200 per year. Due date for the 1st quarter: March 31st of each year.
Owners must fill out a form to update the value of the real property every five years. Failure to do so can lead to a Municipality assessment and fines to the real estate owner. Please verify the last time you filed the form, in case of any doubt, better verify with the Municipality. The Municipalities are already notifying appraisals and fines for people haven't done the update.    

Home Luxury Tax: Only applies to houses, condos, or apartments over a certain construction value (₡133.000.000,00 colones in 2021, ~US$ 240K, this amount is adjusted each year). Due date: January 15 each year. Those liable for this tax shall fill out the form called 'Formulario Único de Inscripción, Declaración y Pago Impuesto Solidario para el Fortalecimiento de Programas de Vivienda, Law # 8683' every 3 years, and, pay the tax annually. The next assessment shall be made and submitted on 2022.

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