What are the real estate closing costs?
by Quatro Legal Real Estate Team | Jan. 3, 2024 | Article, Real Estate
One of the main things any property buyer must know is what are the costs to buy property and how are they calculated. Closing costs in Costa Rica are based on the transactional structure and value, as well as certain technical rules established by the State. Therefore, any real estate attorney or firm should be able to provide a similar quote for representing on a property transaction. The most common structure is purchase of the property’s title. There are two major expenses when buying titled property: notary fees and registration costs. Regarding notary fees, all direct purchases of a property’s title require the services of a public notary. Public notary fees are set by a legal schedule issued periodically by public executive decree by the Costa Rican government and applies to all legal practitioners, meaning all attorneys and notaries must abide by the same rules when charging for their legal services. The legal schedule contains the fees or minimum fees a public notary may charge for a specific service. Regarding registration expenses, they are comprised of transfer taxes and stamps calculated on a percentage basis of the transactional value. Investors should budget around 3.7% for notary fees and registration expenses.
Please see the example below of a purchase valued at US$100,000.00, legal tender of the United States of America:
Tax stamps: $1.00
Archive stamps: $0.04
Attorney Bar stamps: $27.00
National Registry stamp: $507.11
Municipal stamps: $203.00
Agrarian stamps: $152.13
Transfer Tax: $1,521.33
TOTAL TAXES AND STAMPS: $2,411.48
LEGAL FEES (13% VAT NOT INCLUDED): $1,305.82
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