Housing Finance Policy

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    A. Legal and Regulatory Framework

    A.1 Legal and Regulatory Framework
    VariableEnd of 2019End of 2018End of 2017SourcesVar ID
    Basis of the legal system: Civil, Common, Islamic, Other? (Describe)  CivilA.1.1
    Are there specific laws that deal with mortgages?   yesA.1.2
    Registration/Transfer of titles:A.1.3
    Does the law clearly define different types of property rights?  yes
    Inter-American Development Bank
    		A.1.3.1
    Typical number of days needed for the transfer of title  19
    WDI
    		A.1.3.4
    Can liens be effectively enforced?  yes
    Costaricalaw.com
    		A.1.4
    Is there specialized legislation covering:A.1.9
    B. Housing Finance Subsidies
    B.1 Subsidies to Housing Finance Institutions
    VariableEnd of 2019End of 2018End of 2017SourcesVar ID
    Are there subsidized funding sources for mortgage lenders?  yes
    Inter-American Development Bank
    		B.1.1
    Special government lines of credit   yes
    Inter-American Development Bank
    		B.1.1.1
    B.2 Subsidies to Households
    VariableEnd of 2019End of 2018End of 2017SourcesVar ID
    Are there subsidies to households on housing finance?  yes
    Inter-American Development Bank
    		B.2.1
    Down-payment subsidies   yes
    Inter-American Development Bank
    		B.2.1.3
    Subsidies to savings for mortgage loans  no
    Inter-American Development Bank
    		B.2.1.4
    Reach of subsidies in 2.1.1 to 2.1.4 ?B.2.2
    C. Taxation
    VariableEnd of 2019End of 2018End of 2017SourcesVar ID
    What taxes apply to Residential Real Estate?C.1
    Tax on property (home-owners)   YesC.1.1
    Property transaction taxes (purchase/selling)  YesC.1.2
    Tax on capital gains on property   NoC.1.5
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    Notes: 0.25% flat rate
    Notes: -12.93
    Notes: 2.5% of the stated price in the Notarized Transfer Deed
    Notes: BANHVI is a second-tier, government-owned bank that buys mortgage bonds from other lenders to facilitate private lending. SFNV (Sistema Financiero Nacional para la Vivienda) oversees some of the housing subsidy programs and administers which financial institutions receive less-costly funds to carry out the subsidies.
    Notes: BANHVI is a second-tier, government-owned bank that buys mortgage bonds from other lenders to facilitate private lending. SFNV (Sistema Financiero Nacional para la Vivienda) oversees some of the housing subsidy programs and administers which financial institutions receive less-costly funds to carry out the subsidies.
    Notes: BANHVI is a second-tier, government-owned bank that buys mortgage bonds from other lenders to facilitate private lending. SFNV (Sistema Financiero Nacional para la Vivienda) oversees some of the housing subsidy programs and administers which financial institutions receive less-costly funds to carry out the subsidies.
    Notes: BANHVI is a second-tier, government-owned bank that buys mortgage bonds from other lenders to facilitate private lending. SFNV (Sistema Financiero Nacional para la Vivienda) oversees some of the housing subsidy programs and administers which financial institutions receive less-costly funds to carry out the subsidies.
    Notes: BANHVI is a second-tier, government-owned bank that buys mortgage bonds from other lenders to facilitate private lending. SFNV (Sistema Financiero Nacional para la Vivienda) oversees some of the housing subsidy programs and administers which financial institutions receive less-costly funds to carry out the subsidies.
    Notes: Capital gains derived from habitual transactions are taxed at a flat rate of 30%
    Notes: Capital gains derived from habitual transactions are taxed at a flat rate of 30%
    Notes: Capital gains derived from habitual transactions are taxed at a flat rate of 30%
    Notes: IDB reports that mortgage-backed securities have existed in some form since the 1970s in Costa Rica, yet the size of this source of funding is almost negligible.
    Notes: One-time voucher available for households with income under 1,507,434 LCU (colón), or ~2,800 USD in 2015.
    Notes: One-time voucher available for households with income under 1,507,434 LCU (colón), or ~2,800 USD in 2015.
    Notes: Under special subsidy programs regulated by the Banco Hipoteca de la Vivienda: The principal of the loan does not exceed ninety-five percent (95%) of the appraised property to be mortgaged, but in special housing programs for low-income families, the Bank may allow funding of up to one hundred percent (100%) of assessed value (Banco al Hipoteca de la Vivienda).