Buying property can be the single most important decision and process of an individual’s life. And doing so in a foreign country can seem like even more a daunting task. Sure, you’ve got a property in mind and a general sale price, perhaps you’ve even started negotiating, but when it’s all said in done, it can often amount to more than expected. RE/MAX Pura Vida & Dextra Law wants to make sure you’ve got a general idea of where the final numbers will land, so you can go ahead and start the process of making your dream of owning land in Costa Rica a reality. When trying to calculate closing costs, there are a fair number of variables. We asked our friends & lawyers at Dextra Law to help try to break those down in broad strokes, so you can do some rough calculations on your own.**
If you decide to go another more traditional route and transfer the ownership of the property to a person, such as yourself, the closing cost in Costa Rica will include transfer taxes, a National Registry Stamp, as well as various documentary stamps and duties, usually totaling somewhere close to 3.5% of the total sale price.
Next is the Notary Registration Fees, usually around 2%, but actually consisting of varying percentages depending on the total value. For a sales price up to 11,000,000 Costa Rican Colones (roughly $19,000 USD), the Notary Registration Fee is 2%. After the initial 11,000,000 CRC and up to 16.500.000 CRC, a percentage of 1.5% will be added on to the exceeding 5.500.000 CRC of the first bracket and then again from 16.500.000 CRC to 33.000.000 CRC a percentage of 1.25% will be added on to exceeding 16.500.000 CRC of the second bracket. Finally, any amount above 33.000.000 will be charged an additional 1%. to the grand total.
For example, if the purchase price is set at $500,000 (290,000,000 CRC) the buyer will pay as follows: First Bracket of 2% up to 11,000,000 CRC = 220,000CRC; Second Bracket up to 16,500,000 will be charged 1.5%= 82.500CRC; Third Bracket up to 33,000,000 will be charged 1.25% = 206,250CRC and Forth Bracket up to 290,000,000 CRC will be charged 1% = 2,570,000 CRC
Traditionally the closing costs are paid by the buyer while the sales commission is paid for by the seller, but for some properties, the buyer and seller reach a mutual agreement in closing cost fees. Don’t sweat it though, as they tend to be relatively negligible numbers compared to purchasing you dream property. Additional costs may include setting up a buying company for a transaction, topography, promissory notes, option and escrow contracts, and additional due diligence, but don’t hesitate to stop in to RE/MAX Pura Vida if you have any questions or would like to see some of our amazing properties.
Dextra Law is located in Santa Teresa, Costa Rica. Find out more info & contact them today to help you with all your legal needs! http://www.dextralaw.com/
**Please note these are estimates & at the time of posting were correct, they are subject to change.