Real estate commissions in Costa Rica are subject to a mandatory 13% IVA (Impuesto al Valor Agregado) tax, which applies to the brokerage service provided by the agent or agency. This is an important point for property owners to understand early in the selling process, as it directly affects the net proceeds of a sale. The IVA is not included within the commission rate—it is applied on top of it.

From a practical standpoint, the seller bears the cost of this tax, as they are the party contracting and paying for the brokerage service. For example, if a commission is agreed at 6%, the 13% IVA is calculated on that 6% fee, not on the total property value. This means the total cost of brokerage will be slightly higher than the base commission alone.

The agent or brokerage is responsible for invoicing the commission plus IVA, collecting the full amount from the seller, and handling all tax compliance. This includes issuing a compliant electronic invoice, reporting the transaction to the Costa Rican tax authority (Hacienda), and remitting the IVA within the required timelines. In this structure, the agent acts as the collector and remitter of the tax, rather than the party who ultimately bears its cost.

Understanding how IVA applies to real estate commissions allows sellers to plan more accurately and avoid surprises at closing. It also ensures transparency in the transaction, aligning expectations between seller and brokerage from the outset.