Capital Gains Tax in Costa Rica (2025): The New 2.5% Rule Explained

Costa Rica has issued a new tax resolution that clarifies capital gains withholding and suspends several measures that were not ready for implementation. For expats, investors, and foreign property owners, the message is simple: there is now only one withholding rule in force, and it applies only when the seller is not domiciled (no domiciliado) in Costa Rica.

This guide explains exactly how the updated system works, why the 2.5% rule remains active, and what it means for occasional sellers, buyers, and even property flippers.

Who Is Considered “Not Domiciled” (no domiciliado)?

For capital-gains purposes, a seller is classified as not domiciled (no domiciliado) when:

• The property is owned in the seller’s personal name, and
• The seller is not a legal resident of Costa Rica (does not hold a DIMEX card), and
• The seller does not meet the 183-day physical-presence test during the tax year.

This means: Many expats who own property personally and are not Costa Rican legal residents will be treated as “not domiciled” (no domiciliado)—and the 2.5% withholding will apply at closing.

This definition is central to the new rules.

What Changed? — Resolution MH-DGT-RES-0051-2025

Published on 20 November 2025 in La Gaceta, Resolution MH-DGT-RES-0051-2025 brought two major changes:

• The 2.5% withholding remains in force for sellers who are not domiciled (no domiciliado).
• The 2% withholding rule for domiciled sellers was repealed because the government cannot yet implement it through TRIBU-CR and inter-agency systems.

The Ministry stressed that this suspension is due to technical limitations, not policy changes. The 2% rule could return once systems are ready.

The Only Withholding Rule in Effect

If the Seller Is Not Domiciled (no domiciliado)

The buyer must withhold 2.5% of the total sale price (contraprestación total) and pay it to the tax authority.

Key Requirements

• Rate: 2.5% of the full sale price
• Who pays: Buyer, acting as the agent of withholding (agente de retención)
• Form: Form 129 — Retenciones de Ganancias de Capital – No Domiciliado
• Platform: TRIBU-CR
• Deadline: First 15 natural days of the month following the transfer
• Payment: Interbank services, IBAN real-time debit, or other approved methods

Registry impact

The National Registry is not verifying compliance at filing. Hacienda will instead check after registration, with full authority to apply sanctions under Articles 80, 80 bis, and 150 of the Tax Code (Código de Normas y Procedimientos Tributarios).

Is the 2.5% final?

Legally, no — it is a payment on account (retención a cuenta). Practically, for most foreign sellers, it becomes final because they do not file a Costa Rican capital-gains return.

If the Seller Is Domiciled (domiciliado)

No withholding applies.

The earlier 2% rule was repealed because:

• TRIBU-CR cannot calculate or record it reliably
• Government databases cannot cross-verify domicile
• Applying it would cause inconsistent results and possible registry delays

A domiciled seller calculates their capital-gains tax when filing their annual return—but nothing is withheld at closing.

Capital-Gains Rules That Still Apply

Standard capital gains rate

15% of the gain.

Pre-2019 property: the 2.25% option

For properties acquired before 1 July 2019, the seller may elect a one-time 2.25% tax on the sale price instead of calculating the gain. This applies only to domiciled sellers (domiciliados).

Primary residence exemption

A qualifying primary home (vivienda habitual) may be exempt.

Business-use properties

If used in rental or commercial activity, the gain may be taxed under the global income regime (régimen de renta global), not the stand-alone capital-gains system.

Practical Guidance for Sellers

• Determine your status: domiciled or not domiciled.
• If not domiciled: the 2.5% withholding is mandatory.
• If domiciled: no withholding, but you must calculate tax at filing.
• If you bought before July 2019, consider the 2.25% regime.
• Keep all documentation in case of a post-closing audit (control a posteriori).

Practical Guidance for Buyers

• You are the agent of withholding (agente de retención).
• File Form 129 through TRIBU-CR.
• If you fail to withhold, you—not the seller—may be liable.
• Keep proof of payment with all closing documents.

Does the 2.5% Rule Create a Loophole for Property Flippers?

At first glance, paying only 2.5% of the sale price can seem like an advantage for foreign flippers. But this impression is misleading.

1. The 2.5% is not a final tax

It is a payment on account (retención a cuenta).
Hacienda can:

• audit the sale,
• determine the true gain, and
• assess additional tax, interest, and penalties.

2. Repeated flipping may be reclassified as business activity

Costa Rica distinguishes occasional capital gains from ongoing economic activity (actividad empresarial). Frequent flipping can trigger ordinary income taxation, up to 30%.

3. For high-value properties, 2.5% may be more expensive than 15%

Withholding is based on the gross price, not the profit. Small-gain, high-value sales can pay more under 2.5%.

4. The 2.25% pre-2019 regime is unavailable to non-domiciled sellers

Only domiciliados may elect this option.

5. Private non-domiciled sellers rarely recover the 2.5%

Refunds require:

• registering with Hacienda,
• obtaining digital tax credentials,
• filing a full capital-gains return,
• and requesting a refund.

This is rarely pursued. Thus, the 2.5% is generally the effective final tax burden for private non-resident sellers.

Bottom line

The 2.5% rule is not a dependable loophole for flippers. Hacienda can and will audit transactions showing unusually large gains or repeated activity.

Can the 2.5% Be Refunded?

In theory, yes. In practice, almost never.

Because the withholding is a payment on account (retención a cuenta), the seller may file a Costa Rican tax return and request a refund. But few non-domiciled individuals do this. For most expat sellers, the 2.5% becomes final in effect.

Conclusion

Costa Rica’s newest resolution simplifies implementation: only the 2.5% withholding for non-domiciled sellers (no domiciliados) remains active. All other withholding rules — including the 2% rule for domiciled sellers — are suspended until TRIBU-CR is fully integrated with the relevant agencies.

For expats and foreign investors, the essential guidance is simple:
determine your domicile status early, understand when the withholding applies, and ensure the process is handled correctly to avoid future complications.