Capital Gains Tax When Selling Property in Costa Rica
Since 2019, Costa Rica charges capital gains tax on property sales under Ley 9635. Here's what you need to know before selling.
15%
Tax on Net Capital Gain
$0
Primary Residence (Exempt)
2.25%
Pre-2019 Properties (Election)
How It's Calculated
Net Gain = Sale Price - Purchase Price - Documented Improvements
You pay 15% on the net gain. Keep ALL receipts for renovations, construction, and improvements — they reduce your taxable gain.
Key Exemptions & Rules
- ✅ Primary residence: Generally exempt from capital gains tax
- ✅ Pre-July 2019 properties: Can elect to pay 2.25% of total sale price instead of 15% on gain
- ⚠️ Non-resident sellers: Buyer must withhold 2.5% of sale price as prepayment
- ⚠️ The 2.25% vs 15% election is irrevocable — choose wisely
Example Calculation
| Purchase price (2020) | $200,000 |
| Documented improvements | $30,000 |
| Sale price (2026) | $300,000 |
| Net gain | $70,000 |
| Capital gains tax (15%) | $10,500 |
With SIXPERCENT's $995 flat fee (vs. $15,000-18,000 in traditional commission), you keep significantly more of your profit even after capital gains tax.