Buying property in a foreign country can be exciting and rewarding. It is important to do your homework, and we are here to help!
Regardless of whether you will be living in your home year around, part time, or renting out, knowing your expenses ahead of time is important. All costs are estimates and some expenses vary widely, so be sure to ask for quotes if you are unsure.
Common Home Costs
Property Taxes – .25% of declared value (purchase price sets this initially). For a $200,000 home property tax is typically about $500 per year.
Luxury Tax – .25% of property value maximum. This only applies to homes valued over $220,000 USD and is a bit complex to calculate. Most homes do not meet this threshold nor pay this tax.
Condominium Board/Home Owners Association (HOA) – $500 per year typically includes common area landscaping, roads, and water. This amount varies by property size and location. Not every property has an condo/HOA.
Road Association Fees – $300 – $500 per year. Road associations are common, voluntary, but not always necessary.
Water – $15 per month. Some HOAs include this cost in HOA dues and this cost varies based on usage.
Electricity – $50-$400 or more depending on usage. Electricity tends to cost more in Costa Rica than in most of North America and is progressive – in other words, low users pay VERY little and above-average users pay much higher rates
Pool maintenance/cleaning – $25-$35 weekly including chemicals
Landscaping – $50-$100 per month and up depending on yard size
Labor – $3.50 per hour
House cleaner – $35 per visit
Dish Network (satellite) – $75-$150 per month depending on packages
Internet – $50-$100 per month
Property management – $150-$300 per month. If you are not living in the house full time, this is highly recommended but can vary based on services provided.
Rental management – 15% of rental fee. If the property will be rented out on Homeaway/AirBnB/etc a local manager needs to greet guests and deal with local issues.
Common Land costs Costs
Property Taxes – .25% of purchase price. For a $50,000 lot, the property tax could be around $150 per year or even less.
Condominium Board/Home Owners Association (HOA) – $500 per year typically includes common area landscaping, roads, and water. This amount varies by property size and location. Not every property has an condo/HOA.
Road Association Fees – $300 – $500 per year. Road associations are common, voluntary, but not always necessary.
Lot clearing – $100 and up depending on lot size
Common Personal Costs
Mobile Phone – $15-$20 per month
Corporation tax – $120-$240 per year
Vehicles – About 1.5-2 times the cost of a similar vehicle in the US. 4×4 with diesel engine is recommended for this area.
Car registration Including basic liability insurance (Marchamo) – $500-$1500 depending on car value
Annual car safety inspection (formerly RITEVE) – $25 year
Corporation creation – $1500 not always required. Many expats use corporation to hold real estate or run businesses
