The Buyer is usually expected to pay for the 1.25% notarial fee as this work is mostly on the Buyer's behalf. The mandatory taxes and fees to pay to transfer a property are 1.5% (share transfer) or 2.4% (property transfer), levied on the highest of the fiscal value of the property or the purchase price and is based on the Colones amount registered. This tax is usually shared equally between the buyer and seller but it is subject to negotiation. The Escrow fees are typically shared equally by the Buyer and Seller and are between 0.20% and 0.25% of the purchase price (with a minimum amount of a few hundred dollars per transaction).
BUYER'S closing costs are typically as follows when the buyer transfer the property to a new corporation or to his own name:
- 1.25% + IVA (1.41% total) for the notary to do the due diligence, register the property in the National Property Registry and perform closing duties.
- 1.2% (Total 2.4% typically shared between buyer and seller) in government stamps and fees if you purchase a property in your own name or in the name of your own corporation.
- 0.125% + IVA (0.14% total) / (Total 0.28% typically shared between buyer and seller) in Escrow fees commonly apply if you're going to use a third-party escrow such as Stewart Title.
There's also other related costs to the purchase for the buyers for about US$ 2,000. Those fees vary from a buyer to another depending on the situation of each.
- Transfer and deposit of electric meter with COOP Guanacaste
- Opening of a new corporation (if you purchase a property in the name of your corporation)
- Some legal fees such as Affidavit, power of attorney if you cannot come for the closing, firma digital for non residents, etc
SELLER'S closing costs are typically as follows:
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0.50% + IVA (0.56% total) for the notary to do the due diligence and perform closing duties. There's a minimum of US$ 1,000.0 to perform the transaction.
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1.2% (Total 2.4% typically shared between buyer and seller) in government stamps and fees.
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0.125% + IVA (0.14% total) / (Total 0.28% typically shared between buyer and seller) in Escrow fees commonly apply if the buyer is going to use a third-party escrow such as Stewart Title.
The sellers might also have to pay a capital gain tax. More info can be found HERE. This tax is not charged at closing, the seller typically has 30 days after the closing to proceed with the payment.
We made this calculator below to help our clients estimating how much they should expect to pay if they buy or sell their property. We took the example of a property selling for 400,000 for the exercise. The closing costs can sometimes involve many more details than this page can cover. It is very important to consult with an attorney in order to get the right calculations.
