Lower purchase prices don’t always mean lower ongoing costs – but often they do.

One of the most common questions TRREG gets from buyers who are seriously considering Costa Rica is: what does it actually cost to own property there year-round? The answer depends on the property type, location, and whether you’re managing it as a rental. But for most buyers, the carrying costs are meaningfully lower than a comparable U.S. property.

Property taxes are significantly lower.

Costa Rica’s annual property tax rate is 0.25% of the registered property value – considerably less than what most U.S. homeowners pay. For a $400,000 property, that translates to roughly $1,000 per year. Luxury tax applies to properties registered above a certain value threshold and adds an additional layer, but even combined, these rates are favorable by U.S. comparison.

HOA fees, utilities, and property management vary widely.

Gated communities and condominium developments typically carry HOA fees. Utilities in Costa Rica can be surprisingly affordable – electricity, water, and internet together often run a fraction of comparable U.S. costs. If you’re renting the property while you’re not there, a local property manager typically charges a percentage of rental income, similar to U.S. norms.

Plan for maintenance costs in a tropical environment.

Humidity, salt air in coastal areas, and heavy rain seasons mean that properties require more consistent upkeep than in a dry climate. Paint, roofing, and landscaping costs should be factored into your ownership budget. Buyers who plan for this upfront – and who choose properties built for the environment – are far better positioned for long-term ownership.

Tiffany Russell Group