Protect Your Closing and Your Wallet

Thinking about buying or selling property in Costa Rica? There’s a new twist at closing: the buyer must withhold tax in many real-estate transfers. Don’t worry—this guide makes it simple. We’ll explain what you have to do, when to do it, and how to avoid costly mistakes. Read on to keep your deal moving and your money safe.

1) What the New Rule Means: Why the Buyer Withholds at Closing

Buying a property is exciting, but now the buyer also has a tax job. In many sales, the buyer must hold back a small percentage of the price and pay it to the tax authority. This “withholding” works like a safety check. It makes sure the seller’s capital-gains tax gets handled and the National Registry will record the deed without delay.

Here’s the idea in plain words:

• At closing, the buyer keeps a tiny slice of the price.
  
• The buyer files and pays that amount through the official system.
  
• Withholding helps prove the taxes are covered, so the property can be registered in the buyer’s name.
  

Why put this on the buyer? Because buyers need the deal recorded fast and clean. If taxes are missing, the Registry can block the registration. That would delay your title and create stress for everyone. By handling the withholding, the buyer can control the timing and keep the closing on track.

Use this quick table as your cheat sheet:

Role at Closing	What You Do	Why It Matters
Buyer	Withhold a small % of the price and pay it	Ensures taxes are covered so the Registry records the deed
Seller	Accepts net funds (price minus withholding)	Their tax gets prepaid or fully settled (depending on their status)
Notary/Closing Team	Adds the right wording in the deed; guides filings	Prevents solidary liability and registry rejection

Bottom line: if you’re the buyer, you’re the collecting agent. This protects your closing and your wallet. Next, let’s see who pays 2% and who pays 2.5%, and how the simple 183-day test decides it.

2) Domiciled vs. Non-Domiciled: The 183-Day Test in Plain English

Here’s the simple rule: for tax on real estate transfers, what matters is tax domicile, not your visa or residency card. In most cases, you’re domiciled if you’ve been in Costa Rica more than 183 days during the relevant 12-month period. Fewer days? You’re generally non-domiciled.

If you are domiciled, the buyer withholds 2% of the price and pays it to the tax authority. That 2% is not the final tax, it’s a credit against your capital-gains (or corporate income) tax when you file. If the property is your habitual home, no withholding applies. If you are non-domiciled, the buyer withholds 2.5% of the total price, and that 2.5% is a final tax, no later filing to true-up the gain.

A few plain-English points keep this clear:

• The 183-day test counts days in Costa Rica during the look-back period. Short trips out (about a month or less) can still count as “present.”
  
• Immigration status ≠ tax domicile. You can have a residency card and still be non-domiciled if you weren’t here enough days.
  
• Domicile is about where you actually stay, not just where you have documents or bank accounts.

Use this quick comparison:

Topic	Domiciled Seller	Non-Domiciled Seller
183-day rule	More than 183 days in CR (look-back period)	183 days or less in CR
Withholding rate	2% of price	2.5% of price
Nature of tax	Payment on account (you later settle the exact tax)	Final tax (no later true-up)
Key exception	Habitual home: no withholding	Capital contribution of property to a CR company: no withholding
Who withholds & files	Buyer (as agent) via TRIBU-CR	Buyer (as agent) via TRIBU-CR

Quick self-check: Were you in Costa Rica more than half the year? If yes, you’re likely domiciled; plan for 2% withholding as a credit. If not, you’re likely non-domiciled; plan for the 2.5% final tax. When in doubt, ask your closing notary or tax advisor to help you document the correct status before signing.

Now that you know who is domiciled and why it matters, let’s zoom in on the actual rates 2% vs. 2.5%. Who pays what, and when each one is final.

3) The Rates at a Glance: 2% vs. 2.5%. Who Pays What, and When It’s Final

Let’s keep this super clear. In most property sales, the buyer must withhold tax from the price and pay it to the tax office. The rate depends on the seller’s tax status: domiciled (in Costa Rica most of the year) or non-domiciled (not here most of the year).

If the seller is domiciled, the buyer withholds 2% of the price. That 2% is not the final tax, it’s a prepayment (a credit) against the seller’s capital-gains or corporate income tax when they file. If the property is the seller’s habitual home, the 2% doesn’t apply. If the seller is non-domiciled, the buyer withholds 2.5% of the total price and that 2.5% is a final tax, no later true-up based on actual gain.

Two quick examples make it stick:

• Domiciled seller: Price $300,000: Buyer withholds $6,000 (2%). Seller later files their return; the $6,000 counts as credit.
  
• Non-domiciled seller: Price $300,000: Buyer withholds $7,500 (2.5%). That closes the tax for the seller on this sale.
  

Here’s your pocket table:

Seller status	Rate	Final or prepayment?	Common exception
Domiciled	2%	Prepayment (credit) against the seller’s return	Habitual home: no withholding
Non-domiciled	2.5%	Final tax (no later adjustment)	Property contributed to capital of a CR-domiciled company: no withholding

Heads-up: the rate applies to the transaction price, but there’s a catch about minimum valuation floors (you can’t declare a price below certain official values). That’s next: what counts as the tax base, the valuation floors, and the red flags to avoid.

4) What Counts as the Tax Base: Price, Valuation Floors, and Red Flags

Here’s the key idea: the withholding is calculated on the transaction price, but it cannot be lower than certain official valuation floors. In plain words, you take the price you and the seller agreed on, compare it to the government’s reference values for the land and the construction, and use the higher number. That prevents “lowball” pricing on paper just to shrink taxes.

Where do those floors come from? Authorities publish reference land values by zones and a base-value manual for buildings. Your notary or closing team will check both, plus municipal data, to be sure the declared price isn’t below the official floor. If it is, your withholding base gets pushed up to the floor, and the registry can question your deed if numbers don’t match.

Use this table to see how the base is chosen:

Scenario	Agreed Price	Official Valuation Floor	Withholding Base (the higher of the two)	What Happens
Normal deal (price above floor)	$300,000	$270,000	$300,000	Base = price. Easy.
Price equals floor	$280,000	$280,000	$280,000	Base = either. No issue.
Lowball price (below floor)	$250,000	$290,000	$290,000	Base jumps to floor. Expect questions.
New build, permits missing	$400,000	$420,000 (incl. construction)	$420,000	Floor includes the structure. Bring permits/docs.

Red flags to avoid:

• Declaring a price below market “to save tax.” The system will bump your base to the floor anyway.
  
• Unpermitted additions (guesthouse, extra floor). Floors can include construction value; lack of permits creates mismatches.
  
• Side payments or barter not shown in the deed. All consideration must be reflected; hidden value = risk.
  
• Split contracts (one deed + a “furniture” bill) used to understate price. If the split isn’t real, expect trouble.
  
• Share transfers of a company that owns the property. If you cross control thresholds, the system can treat it like a property transfer and look at economic value, not just a token price.
  

Bottom line: pick a truthful price and check the official floor before signing. That keeps your withholding right-sized and your deed registry-ready. Next, let’s see the exceptions that can save you money, like the principal home and other special cases.

5) Exceptions That Save You Money: Principal Home, Donations, Inheritances, Capital Contributions

Good news: not every sale needs withholding. There are specific exceptions that can lower the buyer’s burden and simplify the closing. If you know them in advance, and can prove them. you can avoid holding back cash that doesn’t need to be withheld.

First, the principal home (also called habitual or primary residence). When the seller is domiciled in Costa Rica and the property being sold is their principal home, the buyer does not withhold at closing. The key is proof: the seller should be ready to show that this is truly their main residence (not a vacation rental or investment). Second, donations, inheritances, and legacies also fall outside the withholding rule. These transfers don’t trigger buyer withholding, because they’re not typical “sales for a price.”

There’s one more special case for expats: if a non-domiciled seller transfers a property as a contribution to the capital of a Costa Rican-domiciled company, the buyer does not withhold. This is a narrow, corporate-style exception, so documentation must match the rule (for example, the deed and corporate records showing the in-kind contribution).

Use this quick table:

Situation (Transfer Type)	Seller Status	Withholding at Closing?	What to Have Ready
Principal home (primary residence)	Domiciled	No	Proof of domicile + proof it’s the principal home (utility bills, municipal records, mailing address)
Donation	Domiciled or Non-domiciled	No	Deed of donation + ID docs; confirm non-sale nature of transfer
Inheritance / Legacy	Domiciled or Non-domiciled	No	Probate documents, court orders, notarial records
Capital contribution (property injected into a CR-domiciled company)	Non-domiciled	No	Corporate minutes, company domicile evidence, deed reflecting in-kind contribution

Helpful pointers:

• These exceptions are about withholding. Other taxes or fees (like the transfer tax or registration costs) may still apply unless a separate rule says otherwise.
  
• If you claim an exception, make sure the notary writes it clearly in the deed and attaches the right evidence.
  
• For principal home cases, keep simple, solid proof: recent utility bills, municipal statements, and the address used on official filings.
  

Bottom line: exceptions can save cash at closing, if you document them well. Next, let’s map your filing flow in TRIBU-CR (the online system): how to file the transfer tax, the withholding returns, and how to show proof of payment so the Registry records your deed without delays.

6) Your Filing Flow in TRIBU-CR: Transfer Tax, Capital-Gains Withholding, and Proof of Payment

TRIBU-CR is the only platform to file and pay what the Registry needs to see before it records your deed. Think of it as your digital checklist: first the transfer tax, then the withholding (when it applies), and finally your proof of payment. If you try to file anywhere else, it’s treated as not filed, and the Registry can block your inscription.

Here’s the simple flow. Step 1: file the Transfer Tax (the D-120 is now “Impuesto al Traspaso de Bienes Inmuebles,” and it also covers certain indirect transfers). Step 2: file the capital-gains withholding return the buyer must submit (2% for domiciled sellers as a credit; 2.5% for non-domiciled sellers as a final tax). Step 3: pay inside TRIBU-CR using bank interconnect or real-time debit (DTR). Keep the payment receipts. Your notary will reference them in the deed so everyone avoids solidary liability.

Why “proof” matters: the National Registry pings DGT online to confirm taxes are fully paid. If the system doesn’t see your payments, the deed won’t be recorded. That’s why buyers (as withholding agents) and notaries align the filings before or at closing and put the right wording in the deed. Do this right, and your title moves fast; miss it, and you wait.

At-a-glance filing table

Tax / Form (in TRIBU-CR)	Who files	What it covers	When you file	What the Registry checks
Transfer Tax (“Impuesto al Traspaso de Bienes Inmuebles”)	Buyer / Notary team	Direct deed transfers + certain indirect transfers (>50% shares of a property-holding company)	By the month after the deed date	Payment confirmed via TRIBU-CR web service
Capital-Gains Withholding (buyer as agent)	Buyer / Notary team	2% (domiciled seller, credit) or 2.5% (non-domiciled, final) on the tax base	Within the first 15 days of the next month	Payment + correct rate based on seller’s status
Proof in Deed (wording)	Notary	Notes who withheld/filed/paid	At signing	Avoids solidary liability and rejections

Quick checklist

• Confirm seller status (domiciled vs. non-domiciled).
  
• Check the tax base against valuation floors.
  
• File Transfer Tax. Then Withholding (if applies).
  
• Pay in TRIBU-CR and save receipts.
  
• Add exact wording in the deed.
  

Link to next topic: Now that you know the flow, let’s lock down the deadlines, the 15-day rule for withholding and the “next-month” rule for the transfer tax, so you never pay interest or face a registry delay.

7) Don’t Miss These Deadlines: the 15-Day Rule and the “Next-Month” Rule

Deadlines make or break your closing. The Registry won’t record your deed until it sees taxes filed and paid in TRIBU-CR. Miss a date and you risk interest, penalties, and delays that can spook lenders and sellers.

The 15-day rule (withholding):
When a sale triggers withholding (2% or 2.5%), the buyer, as withholding agent, must file and pay within the first 15 calendar days of the month after closing. “Calendar days” means weekends count. Example: close on March 20: due by April 15. Close on March 2: due by April 15. Close on Dec 31: due by Jan 15. If you’re cutting it close, file early, notaries and escrow officers often set a post-closing calendar before signing.

The “next-month” rule (transfer tax):
The transfer tax (separate from withholding) must be filed and paid within the month after the deed date. Example: deed on March 20: due by April 30. Deed on January 5: due by Feb 29 (leap year) or Feb 28. Since the Registry checks payments online, most teams file transfer tax first, then withholding, and keep receipts ready for the deed.

Missed it? Here’s what happens:
Late payments rack up interest and may trigger fines. Worse, the Registry can block inscription until TRIBU-CR shows “paid.” That means your name isn’t on the title yet—never fun if you’re scheduling moves, renovations, or financing.

Pocket table: deadlines at a glance

What	Who files	Deadline	Pro tip
Withholding (2%/2.5%)	Buyer (as agent)	By day 1–15 of the next month	Put a calendar reminder at closing +7 days
Transfer tax	Buyer/closing team	Any day during the next month	File this first, then withholdings

Date examples

Deed date	Withholding due	Transfer tax due
Mar 2	Apr 1–15	Any day in April (by Apr 30)
Mar 20	Apr 1–15	Any day in April (by Apr 30)
Dec 31	Jan 1–15	Any day in January (by Jan 31)

Closing-week game plan (simple checklist)

• T-5: Confirm seller status (domiciled or not) and the tax base (price vs valuation floor).
  
• T-3: Prepare TRIBU-CR drafts (transfer tax first, then withholding).
  
• T-1: Line up payment method (bank interconnect or real-time debit).
  
• T+0: Sign deed with clear tax wording; file and pay on schedule; store receipts.
  

Link to next topic: To seal the deal, you also need the right wording in the deed. It protects everyone from solidary liability and avoids Registry rejection. Let’s cover exactly what to include and why it matters.

8) Put It in the Deed: Wording That Prevents Solidary Liability and Registry Rejection

A clean deed isn’t just nice, it’s your safety shield. Clear tax wording tells the Registry that everything was filed and paid the right way, and it protects buyer, seller, and notary from solidary liability (everyone being chased for one mistake). Think of it like putting seatbelts on your closing: short phrases that prove who withheld, what was paid, and where the receipts live.

Keep it simple and factual. Name the withholding agent (the buyer), the seller’s tax status (domiciled or non-domiciled), the tax base (price vs. valuation floor), and the forms/receipts in TRIBU-CR. If an exception applies (principal home, donation, inheritance, capital contribution), say so and attach proof. If you used escrow to hold the withheld amount, say that too.

Here’s a quick, practical checklist you can hand to your notary:

Clause You Need	Why It Matters	Plain-English Sample Phrase*
Who withholds	Confirms buyer is the withholding agent	“Buyer acts as withholding agent and withholds the applicable percentage on the tax base.”
Seller status	Picks the correct rate (2% vs 2.5%)	“Seller is [domiciled / non-domiciled] for tax purposes per the 183-day test.”
Tax base	Avoids under-declaration issues	“The tax base equals the higher of the agreed price and the official valuation floor.”
Rate & nature	Says if it’s credit (2%) or final (2.5%)	“Withholding rate: [2% credit / 2.5% final] applied to the tax base.”
Exception (if any)	Legally skips withholding	“This transfer qualifies for the [principal home / donation / inheritance / capital contribution] exception; supporting evidence is attached.”
TRIBU-CR filings	Registry checks this online	“Transfer tax and withholding will be filed and paid in TRIBU-CR; receipt numbers and dates will be added to the closing file.”
Escrow handling	Shows the money trail	“Withheld funds are retained in escrow solely to satisfy the tax payment, then released upon receipt.”
No side payments	Prevents red flags	“All consideration is fully stated herein; there are no side agreements.”
Indirect transfer note	For >50% share deals	“This operation qualifies as an indirect transfer; transfer tax is declared accordingly.”
Correction authorization	Speeds up fixes	“Parties authorize the notary to correct clerical errors that do not alter economic terms.”

*Samples are for orientation, your notary will adapt wording to the official style.

Pro tips to keep the deed “Registry-ready”:

• Name the forms in plain language (transfer tax + capital-gains withholding) and say TRIBU-CR is the platform.
  
• Reference the receipts (numbers/dates) in your closing file; the Registry will verify online.
  
• If claiming an exception, list which one and attach simple proof (utility bill for principal home, probate docs for inheritance, corporate minutes for capital contribution).
  
• State that no consideration is hidden (no side contracts for furniture, etc.).
  
• For share deals that count as transfers, say so clearly to avoid mismatches.
  

Link to next topic: You’ve nailed the deed wording. Now let’s cover how to pay—bank interconnect, real-time debit, and smart moves to avoid interest and penalties.

9) How to Pay: Bank Interconnect, Real-Time Debit, and Avoiding Penalties

Paying the taxes the right way, and on time, keeps your deed moving. In TRIBU-CR, you have two main payment rails: bank interconnect and real-time debit (DTR). Both are fast, but each works a little differently. Choose the one your bank supports and keep the payment receipts for your closing file.

Bank interconnect works like a secure bridge from TRIBU-CR to your bank. You approve the amount in your online banking, and the system confirms it back to TRIBU-CR. Real-time debit (DTR) pulls funds instantly from the account you authorize inside TRIBU-CR, no extra banking window. Either way, the key is to pay right after filing, so the Registry can “see” it when your notary submits the deed.

Here’s a quick comparison you can show your closing team:

Method	Where You Approve	Typical Speed	Good For	Pro Tips
Bank Interconnect	In your bank’s online portal	Fast (depends on bank)	Buyers who prefer bank-side confirmations	Pay earlier in the day; keep the bank’s confirmation PDF.
Real-Time Debit (DTR)	Inside TRIBU-CR	Instant pull	One-step users who want fewer clicks	Double-check account balance before authorizing.
Backup Plan	If one rail is down	Try the other rail	Anyone on a tight deadline	Always have a second account/bank ready.

Avoiding penalties is simple:

• File and pay together. Don’t leave filings “pending payment.”
  
• Watch the deadlines: withholding is due days 1–15 of the next month; transfer tax is due any day in the next month.
  
• Weekends count for the 15-day window. If day 15 is a Sunday, pay by day 14.
  
• If you’re close to a cutoff, use DTR, it’s instant.
  
• Save both the TRIBU-CR receipt and (if used) the bank confirmation. Your notary will reference them.
  

If you do miss a date, TRIBU-CR will calculate interest automatically, and you may face fines. Pay the shortfall fast to stop interest from growing. Then have your notary re-check that the Registry now reads the payment as complete before re-submitting anything.

Link to next topic: Payments done? Great. Some deals trigger taxes even when no deed changes hands. Next up: share deals that count as transfers, what happens when more than 50% of a company that owns the property is sold.

10) Share Deals That Count as Transfers: When Selling >50% of a Property-Holding Company

Sometimes a property changes hands without changing the name on the deed. How? By selling the shares of the company that owns the property. If more than 50% of those shares are transferred, the law treats it like a property transfer for tax purposes. That means you may have to file the transfer tax in TRIBU-CR, even though the deed didn’t move.

Think of it this way: if the company’s main asset is the house, lot, or condo, selling control of the company is almost like selling the property itself. To stop people from dodging taxes by using companies, the rule says: “Over 50% sold? That’s a transfer.” In practice, your closing team will check if the company is a property-holding company, if the share sale crosses the 50% threshold, and what value should be used to calculate the tax (the deal price can’t go below official valuation floors for the underlying real estate).

What do buyers and sellers need to do? Keep it simple:

• Confirm the threshold: Are you selling more than 50% of the shares?
  
• Identify the asset: Is the company mainly holding real estate?
  
• File in TRIBU-CR: Use the Transfer Tax form (now “Impuesto al Traspaso de Bienes Inmuebles”) for indirect transfers.
  
• Match the numbers: Make sure the transaction value makes sense against official valuation floors for the property.
  
• Put it in writing: Your contract should state it’s an indirect transfer and list the TRIBU-CR filing and payment details.
  

Quick reference:

Scenario	Shares Sold	What It Triggers	What To File	Key Check
Control changes hands	>50%	Indirect transfer (like a property sale)	Transfer Tax in TRIBU-CR	Use a value ≥ valuation floor
Minority sale	≤50%	Usually not an indirect transfer	Often no transfer tax	Still document ownership changes
No deed change	N/A	Title stays with the company	N/A	Taxes still apply if >50% sold

Bottom line: a share deal can be a taxable property transfer in disguise. Treat it with the same care as a normal sale: align value, file the tax in TRIBU-CR, and keep clean paperwork. Next up, a happier topic, how Law 9996 can cut your transfer tax by 20% if you qualify as an investor, rentista, or pensionado.

11) Law 9996 Perks: How Eligible Expats Claim the 20% Transfer-Tax Reduction

Law 9996 was created to attract investors, rentistas, and pensionados to Costa Rica. One useful perk for real-estate buyers is a 20% reduction of the property transfer tax (this is the tax paid when a property changes hands; it’s separate from capital-gains). If you qualify under Law 9996, you can apply this discount directly in TRIBU-CR at the time of filing the transfer-tax form.

Here’s how it works in simple terms. First, make sure you are recognized as a Law 9996 beneficiary (investor, rentista, or pensionado) and that your benefit is active. Second, when your notary or closing team prepares the transfer-tax return in TRIBU-CR, they select the exemption/discount field and enter the 20% reduction the law allows. Third, keep your supporting documents handy (resolution or ID showing your 9996 status), so the deed can reference them and the discount is easy to validate if the Registry checks.

A few limits to keep in mind. The 20% perk reduces the transfer tax only; it does not reduce capital-gains withholding. If you later cease to meet the law’s conditions (or if rules change), the discount might no longer apply to future purchases. Also, some buyers choose to hold property in a company; if you do, confirm that the beneficiary and the buyer line up with what TRIBU-CR expects before you file.

Quick guide to the 20% reduction

Who can use it?	What’s discounted?	Where do you claim it?	What proof helps?
Law 9996 Investor / Rentista / Pensionado (active)	Property transfer tax (not capital gains)	TRIBU-CR transfer-tax form (exemption/discount field)	9996 approval/resolution, ID, deed notes referencing your status

Do’s and don’ts

• Do confirm your 9996 status is current before closing.
  
• Do keep a PDF of your status letter/ID for the file.
  
• Don’t assume the discount applies to every tax—it doesn’t.
  
• Don’t wait until after closing to ask for it; claim it in the return.
  

Link to next topic: Now let’s wrap everything into an expat playbook, simple checklists for sellers abroad, buyers from non-resident owners, and principal-home cases, so you can close fast and clean.

12) Expat Playbook: Checklists for Sellers Abroad, Buyers of Non-Resident Property, and Habitual-Home Cases

You’ve learned the rules. Now let’s make them easy to use. Below are three short checklists you can copy, share with your closing team, and follow step by step. Keep your docs simple, your filings on time, and your deed registry-ready.

Sellers abroad (non-domiciled). The “2.5% final tax” path

• Confirm your status: you were in Costa Rica ≤183 days in the look-back period.
  
• Agree on a truthful price (check valuation floors).
  
• Ask the notary to write in the deed that the buyer will withhold 2.5% and file in TRIBU-CR.
  
• Share clear ID and bank instructions (you receive net after withholding).
  
• Buyer files withholding: days 1–15 of next month. Keep the receipt.
  
• If your transfer is a capital contribution to a CR-domiciled company, confirm that no withholding applies and add proof.
  

Buyers from a non-resident seller, you are the withholding agent

• Check seller status early (domiciled? non-domiciled?).
  
• Set escrow to hold the withholding until paid.
  
• Verify the tax base (price vs. official floor).
  
• File Transfer Tax in TRIBU-CR any day next month.
  
• File Withholding (2.5%) in TRIBU-CR days 1–15 of next month.
  
• Pay via bank interconnect or real-time debit (DTR) and save receipts.
  
• Deed must say who withheld, what was filed, and that all consideration is on the record.
  

Habitual-home cases (domiciled seller). The “no 2% withholding” exception

• Confirm seller is domiciled (>183 days) and this is their principal home.
  
• Gather simple proof: recent utility bills, municipal records, official address on filings.
  
• Ask the notary to add a clear exception clause in the deed; attach proof.
  
• File Transfer Tax in TRIBU-CR on time (the exception is about withholding, not other taxes).
  
• Keep all receipts; the Registry checks online before recording.
  

One-page cheat table

Scenario	Who You Are	What You File	When	Extra Notes
Sell as non-domiciled	Seller abroad	Buyer files Withholding 2.5%	Days 1–15 next month	2.5% is final tax; deed must state it
Buy from non-resident	Buyer	Transfer Tax + Withholding 2.5%	Transfer Tax: any day next month; Withholding: days 1–15	Use ≥ valuation floor; keep TRIBU-CR receipts
Principal home (domiciled seller)	Buyer/Seller	Transfer Tax only (no 2%)	Any day next month	Deed must show the principal-home exception + proof

Quick wrap-up: When you use these checklists, your closing stays clean, fast, and stress-free. Ready to finish strong? Next, we’ll wrap everything up with a short conclusion and FAQs so you can save the whole guide and share it with your team.

Conclusion

Buying or selling property in Costa Rica now comes with one extra job at closing: the buyer acts as the withholding agent. Keep it simple, confirm the seller’s status (domiciled = 2% credit, non-domiciled = 2.5% final), check the valuation floors, file and pay in TRIBU-CR, and make sure the deed wording proves who withheld and what was paid. Do that, and the National Registry records your deed without drama.

Use the exceptions when they fit (principal home; donations, inheritances; certain capital contributions), but document them clearly. Watch the clocks: withholding due days 1–15 of the next month; transfer tax due any day next month. If you qualify under Law 9996 (investor/rentista/pensionado), claim the 20% transfer-tax reduction right in the TRIBU-CR form.

For expats, this is more checklist than challenge. Align your numbers, keep your receipts, and put the right words in the deed. That’s how you protect your closing, and your wallet.

FAQs (Quick Answers)

1. What’s the difference between 2% and 2.5%?
   2% applies when the seller is domiciled (it’s a prepayment/credit). 2.5% applies when the seller is non-domiciled (it’s a final tax).
   
2. How do I know if a seller is “domiciled”?
   Use the 183-day test (days physically in Costa Rica over the look-back period). Immigration status isn’t the same as tax domicile.
   
3. Do I still withhold if it’s the seller’s principal home?
   If the seller is domiciled and the property is their principal home, no withholding, but prove it (utilities/municipal records) and put it in the deed.
   
4. I’m buying from a non-resident. Do I have to withhold?
   Yes. As buyer, you withhold 2.5% of the price and file/pay it in TRIBU-CR. It’s the seller’s final tax on that sale.
   
5. Is the withholding based on profit?
   No. It’s on the price, but not below official valuation floors (land + construction references).
   
6. What happens if I miss a deadline?
   You face interest/penalties and the Registry may not record the deed until TRIBU-CR shows “paid.”
   
7. Can I file outside TRIBU-CR?
   No. Declarations made outside TRIBU-CR are treated as not filed.
   
8. Does Law 9996 cut my withholding?
   No. Law 9996 gives a 20% reduction of the transfer tax, not the withholding. Claim it inside the transfer-tax form in TRIBU-CR.
   
9. Do share sales trigger the transfer tax?
   If you sell >50% of a company that holds the property, it’s treated as an indirect transfer, file the transfer tax in TRIBU-CR.
   
10. What deed wording keeps me safe?
    State who withheld, seller’s status, tax base (price vs floor), rate and nature (2% credit / 2.5% final), TRIBU-CR filing/payment, and any exception with proof.
    
11. Can escrow handle the withheld amount?
    Yes. Many closings park the withheld funds in escrow until TRIBU-CR confirms payment; keep the receipts.
    

Are donations/inheritances subject to withholding?
No withholding in those cases (and no 2% for principal home when conditions are met). Other fees/taxes may still apply per law.