Closing costs a buyer should expect for their Costa Rica property

4.4.2011

In the fever of purchasing a new home in Costa Rica, many buyers may be solely focused on their luxury villa and not the process that goes into apprehending the property. To clarify the country's closing costs, CostaRicaNews.com has compiled a list of costs that buyers will encounter in the Rich Coast.

Closing costs in Costa Rica usually amount to 3 to 6 percent of the transaction sale price and typically include legal fees, a stamp tax and a transfer land tax, which is calculated based on the property's declared value. The website said taxes and fees may be considerably reduced or eliminated if a property is owned by a Costa Rican corporation.

In a change to the county's real estate transactions, the source reported that Costa Rica changed its currency law to allow real estate contracts to be written in dollars if the sale was negotiated in that currency, which is good news for Americans interested in Costa Rica villas. Until recently, sales made in dollars had to have contracts that listed prices in colones, the country's native currency, which complicated deals for foreign buyers.

Costa Rica's beautiful beaches, environmental friendliness and proximity to the U.S. makes it a top destination for celebrities purchasing a vacation home. According to Costa Rica Close up, well-known entertainers such as Mel Gibson, Sting and Harrison Ford own villas in the country.