Owning Property in Costa Rica: A 2025 Guide
Is it better to buy property in Costa Rica under a corporation or your personal name? The old advice is wrong. This 2025 guide analyzes the true costs of corporate fees vs. probate, the impact of capital gains tax, and helps you choose the right structure for your investment.
If you're buying property in Costa Rica, you've almost certainly been told: 'You must use a corporation.' It's the standard advice for expats. For years, the conventional wisdom, often echoed in online forums and by legal professionals, has been a simple and resounding endorsement of the corporate structure. This advice was typically rooted in the argument that the high cost of probate in Costa Rica made direct personal ownership a financially perilous choice for one's heirs.
However, this long-standing guidance is now dangerously outdated.
Significant legal and fiscal reforms over the past several years have fundamentally altered the calculus. The introduction of a comprehensive capital gains tax, major changes to the structure of legal fees, and a clearer understanding of the true annual obligations of corporate ownership have rendered the old "corporation is always better" argument obsolete. The decision is no longer a straightforward choice but a nuanced strategic analysis that balances long-term costs, tax implications, administrative burdens, and personal liability.
This report provides a definitive, data-driven analysis for 2025, moving beyond simplistic conclusions to offer a clear framework for making an informed decision.