New Withholdings and Real Estate Transfer Tax in Costa Rica .
Resolution MH-DGT-RES-0039-2025 – Effective October 6, 2025
The Costa Rican Ministry of Finance has issued Resolution MH-DGT-RES-0039-2025, which sets new rules for the Capital Gains Tax on real estate transactions and the Real Estate Transfer Tax.
These reforms aim to strengthen tax collection, provide greater security in property registrations at the National Registry, and incentivize foreign investment under Law 9996 (Investors, Rentiers, and Retirees).
New Capital Gains Withholdings
Starting in October, buyers of real estate will act as withholding agents and must declare and pay the tax directly to the Ministry of Finance:
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2% withholding: when the seller is domiciled in Costa Rica. This amount counts as an advance payment toward their income or capital gains tax return.
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2.5% withholding: when the seller is non-domiciled. This amount is a final and definitive tax.
In both cases, the buyer is responsible for withholding, declaring, and paying the tax.
Exemptions
The withholding tax does not apply in the following cases:
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Sale of the seller’s primary residence (domiciled).
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Donations, inheritances, and legacies.
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(for non-domiciled sellers).Capital contributions of real estate into Costa Rican companies
Real Estate Transfer Tax
In addition to the capital gains withholding, all real estate transactions remain subject to the Real Estate Transfer Tax:
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1.5% of the highest value between the deed price and the fiscal value.
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Shared payment: 50% buyer / 50% seller.
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Declaration and payment: within one month after signing the deed.
Exemptions and Benefits
Exemptions provided under Law 6999 remain in force.
Beneficiaries of Law N°9996 (Investors, Rentiers, and Retirees) are entitled to a 20% reduction in the transfer tax, provided they are the registered titleholders and maintain the property during the benefit period.
Forms and Platform
Exemptions provided under Law 6999 remain in force.
The former D-120 form has been renamed “Real Estate Transfer Tax”.
New fields: exemption percentage and exempted amount.
For non-domiciled sellers: “Capital Gains Withholding – Non-Domiciled” form.
All filings must be made via the TRIBU-CR system.
The National Registry will only record property transfers once Hacienda confirms payment through its Web Service