Understanding Real Estate Closing Costs in Costa Rica

Welcome to our comprehensive guide on understanding real estate closing costs in Costa Rica! If you’re considering purchasing property here, you’re entering a world full of potential and opportunity. At Quatro Legal, we’re here to hold your hand through the process, ensuring every step is as seamless and transparent as possible.

Transparency from the Start

One of our core policies at Quatro Legal is to provide you with a preliminary closing statement — consider it a budget — right at the start of your transaction. This upfront disclosure outlines both the mandatory fees and any optional services, eliminating any surprises down the line. Think of it as setting the path for a smooth journey into your new property.

Understanding the Role of Notaries In Costa Rica

In Costa Rica, the role of a notary public is crucial and differs quite a bit from what you might expect in other countries. Notaries here are licensed legal professionals and practicing attorneys who handle significant legal tasks such as drafting your closing fee. Rest easy knowing that notary fees are firmly regulated by a public decree, and our adherence to these guidelines at Quatro Legal guarantees a fair and transparent process.

Types of Real Estate Transactions

The most common real estate transaction is a direct purchase. This straightforward approach involves acquiring the property’s title directly from the seller. The associated closing costs in this scenario include notary fees, generally ranging from 1 to 2 percent of the property’s value, along with transfer taxes and registration expenses. Specifically, the transfer tax is set at 1.5 percent, with registration fees around 0.8 percent. Altogether, you should anticipate these mandatory costs to total approximately 3.7 percent of the property’s value.

For those engaging in an indirect purchase, where the buyer acquires shares of the company owning the property, there are slight variations in the process. Though you will still pay the 1.5 percent transfer tax, the good news is that you won’t encounter registration fees. Additional expenses may include legal fees to draft the sale and purchase of shares agreement, as well as updating corporate bylaws.

Negotiating Closing Costs In Costa Rica

According to Costa Rican law, closing costs are generally split between the buyer and the seller. However, the market dynamics can influence negotiations, enabling a flexible arrangement that suits both parties.

A Smooth Transition to Your New Property In Costa Rica

Understanding the costs and procedures involved ensures a seamless transaction, allowing you to focus on the most exciting part — the pursuit of your new home in beautiful Costa Rica! For more resources and guidance, please visit our news section. If you have further questions or unique needs, feel free to drop us a message. We’re eager to assist you and even draft a blog or video to address your queries.

Thank you for Choosing Us

For nine wonderful years, we at Quatro Legal have been honored to serve as your dependable partner in navigating the complexities of residency and real estate transactions in Costa Rica. We look forward to being a part of your journey.

Thank you for considering us, and we are excited to assist you in realizing your new adventure in Costa Rica!

Disclaimer: The information provided in this blog post is for general informational purposes only and is not intended to constitute legal advice. While we strive to ensure the accuracy and timeliness of the content, laws and regulations are subject to change. For the most accurate and up-to-date information, please contact our office directly. Some images may be AI generated.