Property Taxes, HOA Fees & Ongoing Costs: What to Expect as a Homeowner in Costa Rica

One of the biggest surprises for foreign buyers moving to Costa Rica is just how affordable it is to own property here. Compared to the U.S. and Canada, Costa Rica offers low property taxes, reasonable maintenance costs, and flexible options for insurance and HOA living.

Still, it’s important to understand the true cost of ownership so you can budget confidently and avoid surprises. Whether you're buying a home, condo, investment property, or a luxury estate, this guide breaks down every ongoing cost you should expect as a homeowner in Costa Rica.

1. Municipal Property Tax: 0.25% Annually

Costa Rica has some of the lowest property taxes in the world.

The standard municipal property tax rate is:

0.25% of the registered property value per year

This means:

• A $500,000 home pays approx. $1,250/year

• A $1,000,000 home pays approx. $2,500/year

• A $250,000 condo pays approx. $625/year

These taxes are paid to the local municipality, either quarterly or annually.

What the tax covers:

• community services

• municipal staff

• trash collection (varies by municipality)

• public maintenance

For most homeowners, this tax is surprisingly low — and a major benefit of buying in Costa Rica.

2. Luxury Home Tax (Impuesto Solidario)

Costa Rica has a separate tax for higher-value homes known as the Luxury Home Tax.

This tax applies to:

• homes with construction value over a threshold updated every year (usually around $230,000–$250,000 for construction value, not land)

Important notes:

• It applies to the value of the construction, not the land

• Condos may qualify depending on amenities and finishes

• The tax rate ranges from 0.25% to 0.55%

Your attorney or appraiser can calculate whether your home qualifies. Many homes do not fall into this category, but luxury villas and newly built properties often do.

3. HOA Fees (Condominiums & Gated Communities)

If you’re buying inside a gated community or condominium, HOA fees will apply. Costs vary based on:

• amenities offered

• size of development

• infrastructure

• security

• pools, gyms, and common areas

• beachfront vs inland location

Typical HOA ranges:

• $200–$500/month for condos

• $150–$400/month for homes in gated communities

• $500–$1,000+/month for luxury beachfront or resort communities (e.g., Hacienda Pinilla, Las Catalinas)

HOAs usually cover:

• 24/7 security

• maintenance of roads and landscaping

• pools and common areas

• administrative services

• garbage collection

• reserve funds

• water (in some communities)

If you plan to rent your property, HOAs with professional management can be a big advantage.

4. Utilities: What You Can Expect to Spend Monthly

Utility costs depend on usage, size of the home, and whether you run air conditioning.

Electricity

This is usually the highest utility for homeowners.Monthly ranges:

• $75–$200/month for condos

• $150–$450+/month for homes

• $500–$900+ for large villas running A/C heavily

Homes with solar power significantly reduce energy costs.

Water

Water is inexpensive:

• $10–$40/month for most homes

• More for large homes with gardens or pools

Internet

High-speed fiber is widely available:

• $25–$80/month depending on speed

Gas (Optional)

Many homes use gas for cooking or hot water:

• $10–$30/month

5. Home Insurance: Very Reasonable Compared to North America

Home insurance in Costa Rica is optional but recommended, especially near the coast.

Typical annual premiums:

• $400–$1,200/year for condos or smaller homes

• $1,500–$3,500/year for large villas or luxury homes

Coverage usually includes:

• fire

• theft

• liability

• hurricanes and wind

• earthquakes

Beachfront properties with higher exposure will have slightly higher premiums, but still far below U.S. coastal insurance rates.

6. Pool & Garden Maintenance

If your property has a pool or landscaped yard, budget for ongoing service.

Pool service:

• $80–$150/month

Gardening:

• $100–$250+/month depending on property size

Vacation rental homes usually require more frequent service to keep the property guest-ready.

7. Property Management (Optional but Highly Recommended)

If you don’t live full-time in Costa Rica, property management can be invaluable.

Typical costs:

• $150–$300/month for basic home oversight

• 20–30% of rental income for full vacation-rental management

Services can include:

• guest check-ins

• marketing

• cleaning coordination

• emergency repairs

• bill payment

• communication with HOAs

• maintenance scheduling

For rental homes, a good management team can make or break your ROI.

8. Corporation Fees (If You Own Through a Company)

Many buyers choose to hold property in a Costa Rican corporation (S.A. or SRL). If so, expect:

Annual expenses:

• $120–$400 annual corporation tax

• $150–$300 for RTBF (shareholder registry) compliance

• $300–$600 for accountant or legal maintenance

Total annual costs for a corporation usually fall between $500–$1,000/year.

9. Repairs & Routine Maintenance

Costa Rica’s tropical climate requires consistent upkeep.

Plan to budget:

• 1–2% of property value per year for general maintenance

  
  

Typical items include:

• painting

• roof work

• A/C service

• appliance repair

• pest control

• deep cleans

Homes near the beach may require more frequent maintenance due to salt air.

10. Summary: Annual Cost of Owning Property in Costa Rica

Here is a safe estimate for the average homeowner:

Condos:

Total annual cost: $3,000–$8,000/year

Luxury homes or villas:

Total annual cost: $8,000–$20,000+/year

Beachfront or resort communities:

Total annual cost: $12,000–$30,000+/year

Still dramatically lower than comparable U.S. beachfront markets.

Final Thoughts: Owning Property in Costa Rica Is Surprisingly Affordable

Costa Rica offers an incredible lifestyle at a fraction of the ownership cost you’d expect for a luxury beach destination. Low property taxes, reasonable HOA fees, and flexible maintenance options help make long-term ownership accessible and predictable.

Whether you’re buying a vacation home, an investment property, or making Costa Rica your full-time home, these numbers give you a clear picture of what to expect.

If you'd like help estimating ownership costs for a specific home or community, I’m happy to walk you through it.