Hidden Ownership Costs in Costa Rica: What Most Buyers Don’t Know

The True Cost of Owning Property in Costa Rica

Costa Rica’s real estate market has grown rapidly, especially in Guanacaste, where ocean-view homes and modern condos attract North Americans looking for lifestyle upgrades or investment returns. While the country offers relatively low property taxes and strong property rights, buyers often underestimate the ongoing costs of ownership.

Whether you’re considering a villa in Playa Hermosa, a condo in Las Palmas, or a luxury home in Pacifico, understanding these expenses is essential to planning accurately - and avoiding surprises after closing.

Here is a comprehensive breakdown of the hidden costs that come with owning property in Costa Rica in 2025.

1. HOA Fees: The Biggest Variable in Your Budget

If you buy in a gated community, condo complex, or luxury development, you’ll pay Homeowners Association fees. These can range widely depending on services offered:

• Condos in Las Palmas: $200–$350 per month

• Mid-range gated communities: $250–$500

• Luxury developments (Pacifico, Coco Bay, Vista Ocotal): $450–$900

• Ultra-luxury / ocean-view estates (Hermosa Heights, Monte Bello, Papagayo): $1,000–$3,000+ per month

  
  

HOAs often cover:

• Security

• Landscaping

• Pool maintenance

• Road upkeep

• Shared amenities (gyms, clubhouses)

• Trash collection

  
  

Buyers should always request two documents:

1. The HOA financial statements, and

2. The community bylaws.

These reveal if the HOA is solvent - or if a large special assessment might be coming soon.

2. Property Taxes (Surprisingly Low)

Costa Rica’s property taxes remain some of the lowest in the Americas.

• Standard property tax: 0.25% of registered value

• Paid annually or quarterly

• A $500,000 home typically pays around $1,250 per year

But there is a second tax many buyers don’t know about…

3. The Luxury Home Tax (Impuesto Solidario)

Applicable to higher-value homes, this tax is recalculated every three years based on construction value, not the land.

In 2025:

• Applies to homes appraised at roughly $240,000 USD+ in construction value

• NOT based on market value

• Ranges from 0.25% to 0.55% annually

  
  

Many owners don’t realize they qualify - or forget to file the appraisal - leading to fines and interest.

If you're buying or building a luxury villa, this tax must be part of your annual budget.

4. Utilities and Monthly Costs

Depending on the property, utilities can vary greatly. Expect:

• Electricity: $120–$450/month for standard homes

  • Larger villas with AC running heavily can exceed $700–$1,000/month

• Water: $10–$40/month

• Fiber optic internet: $40–$80/month

• Gas (if applicable): $10–$20/month

Electricity is the biggest expense — especially for homes with:

• Multiple AC units

• Electric hot water tanks

• Pools

• Large refrigerators

• Dehumidifiers in rainy season

  
  

Homes designed with cross-ventilation, solar panels, gas heaters, or zoned AC systems often cut these costs significantly.

5. Insurance: Home & Earthquake Coverage

Most buyers want:

• Fire and theft insurance

• Earthquake coverage

• Optional: flood, hurricane, and liability insurance

Annual cost for a $500,000 home:

• Standard insurance: $600–$1,000/year

• With full earthquake: $1,200–$2,000/year

Ocean-view homes built on hillsides may pay more due to terrain and soil stability requirements.

6. Pool & Garden Maintenance

If you own a private villa, expect regular upkeep:

• Pool service: $80–$150/month

• Garden maintenance: $50–$200/month

• Deep cleaning or chemical shocks: $50–$100 occasional

If your villa includes extensive landscaping or a large infinity pool, expect the upper range.

7. Property Management Fees

For remote owners, property management is essential - especially if you rent your home.

Typical fees:

• Long-term rental management: 10% of monthly rent

• Vacation rental management: 18%–25% of rental income

• Monthly caretaking for non-rentals: $150–$350/month

  
  

Good management includes:

• Bill payments

• Guest communication

• Cleaning coordination

• Repairs

• Inventory management

  
  

This is one of the most important decisions you’ll make as an owner.

8. Repairs & Tropical Wear-and-Tear

Costa Rica’s tropical climate accelerates wear, particularly near the ocean.

Common annual maintenance includes:

• Repainting exterior every 3–5 years

• Re-staining wood annually

• Replacing AC units every 8–12 years

• Roof cleaning and sealing

• Mold prevention treatments in rainy season

• Pool pump replacements

• Replacement of appliances affected by salt air

  
  

Expect to budget 1%–2% of your home’s value per year for ongoing maintenance.

A $700,000 home = $7,000–$14,000 annually.

9. Occasional Special Assessments

If you live in a condo, HOA, or gated community, you may face occasional special assessments for:

• Road resurfacing

• New security systems

• Infrastructure repairs

• Pool renovations

• Emergency funds

  
  

Special assessments can range from $300 to $3,000+ per owner depending on the project.

Buyers should ask:

• “Has the HOA issued assessments in the past 5 years?”

• “Are any new assessments planned?”

Well-managed communities build financial reserves to avoid frequent extra fees.

10. Rental Income Expenses (For Investors)

If you plan to operate a vacation rental, include:

• Cleaning fees

• Marketing platform fees (Airbnb/VRBO)

• Replacements due to guest use

• Deep cleaning after heavy season

• Accountant for IVA tax filings

Most owners pay 13% IVA tax on rental revenue, unless exempt as long-term rentals.

What Does the Average Owner Really Spend?

Here’s a realistic annual estimate for a $500,000–$800,000 property in Coco or Hermosa, depending on type:

Condos

$6,000–$12,000/year

Luxury homes

$10,000–$25,000+/year

High-end ocean-view villas

$20,000–$40,000+/year

Owners who budget accurately experience far fewer surprises — and enjoy their property far more.

Final Thoughts

Costa Rica is a low-tax, high-lifestyle destination — but it is essential to understand the ongoing costs of ownership. With realistic expectations and proper planning, you can protect your investment, reduce surprises, and enjoy the beauty and security that real estate in Guanacaste provides.

Most buyers find that the lifestyle benefits far outweigh the costs — but the smartest investors plan for every line item from the start.

Want help finding the best property deals? 

Contact me directly for personalized listings, video walkthroughs, or a free consultation.

sabina@palmrealestatecr.com| WhatsApp Me +506 8713 8080 | Based in Guanacaste, CR