For many years, property owners in Costa Rica rarely had to consider Capital Gains Tax when selling real estate. Historically, this tax applied only to developers engaged in the business of building and selling property, leaving individual owners exempt. However, recent changes to Costa Rican tax law significantly expanded the scope of Capital Gains Tax (Ganancias de Capital), and in this article, we review how these updates impact today’s real estate transactions.
How Much Is the Capital Gains Tax?
Under Law 9635, Costa Rica established a 15% Capital Gains Tax, applicable to all investment income and real estate. For properties acquired before July 1, 2019, sellers may opt for a one-time alternative tax of 2.25% applied to the full sales price, rather than calculating capital gain on profit.
In 2025, the Tax Authority updated the process through Resolution MH-DGT-RES-0039-2025, establishing new withholding obligations at closing:
- Residents: Buyers must withhold 2% of the sale price. This amount is a credit toward the seller’s final capital gains liability, to be settled when filing the appropriate tax form.
- Non-residents: Buyers must withhold 2.5%, which serves as the final and definitive tax.
These payments must be submitted by the purchaser within the first 15 days of the month following closing.
Who Has to Pay Capital Gains Tax?
The sale of a primary residence remains exempt. The law defines a primary residence as the property used for the owner’s continuous shelter, protection, and home.
Capital Gains Tax applies to all other properties, including: Investment properties, Vacation rentals, Commercial real estate, Second homes
If the seller is a Costa Rican tax resident, the standard rules apply. However, when the seller is not domiciled in Costa Rica, additional withholding rules come into play.
Who Is a Non-Domiciled Property Owner?
According to Article 5 of the Income Tax Regulations, a non-domiciled person is someone who is a foreign individual who spends fewer than 183 days per year in Costa Rica, or is a foreign company not registered in Costa Rica.
Costa Rican corporations (SA or SRL) registered at the National Registry are considered domiciled as long as their legal or fiscal domicile is located in Costa Rica.
When a seller is non-domiciled, the law requires the BUYER to withhold 2.5% of the sales price to ensure tax compliance. This withholding is mandatory and must be paid before the property transfer can be registered.
Important 2025 Updates: TRIBU-CR and Registry Coordination
In October 2025, Costa Rica launched TRIBU-CR, a new digital platform replacing the previous ATV system. All tax filings, including capital gains declarations and withholding payments, must now be processed through TRIBU-CR using updated forms.
A National Registry circular issued the same month noted that the Registry currently cannot verify certain tax payments due to system limitations. However, the withholding obligation remains fully in effect, and transactions must comply with the tax rules regardless of Registry verification.