One of the best things for investors in Costa Rica real estate is there are no Capital Gains Tax when you sell a property… That’s about to change.
The Costa Rican Government in December of 2018 approved a new Tax Reform Law which among other changes in Costa Rica tax laws, establishes a new Capital Gains Tax.
The new Capital Gains law will now establish a 15 percent tax on capital gains which will apply to real estate and investment income.
This New Capital Gains Tax Will Go Into Effect On July 1, 2019
If you are a Costa Rican Resident and own real estate, the property you reside in is considered your “Primary Residence”, being a Costa Rican Resident, you are not responsible for Capital Gains on your primary residence.
A one time reduced tax of 2,25 percent of the total sales price will be available for those who have purchased their property before July 1, 2019. This represents a considerable saving on the 15 percent that will go into effect on July 2019.
As always, one should consult their attorney concerning the new July 1, 2019, Capital Gains Tax-