Introduction
The dream of owning a condo in Costa Rica often begins with a vision: morning coffee on a breezy balcony, afternoons by the pool, and weekends spent snorkeling or boating in turquoise waters. But after the initial excitement of purchase, reality sets in—how much does it actually cost to maintain that dream? Beyond the purchase price, there are ongoing expenses every buyer should anticipate, from homeowner association (HOA) fees to utilities, insurance, and routine upkeep. All of these add up to a significant part of your cost to live in Costa Rica and understanding these costs upfront not only avoids unpleasant surprises but also ensures long-term financial stability for your investment.
Why maintenance costs matter for long-term budgeting
For many international buyers, the decision to purchase in Costa Rica is about lifestyle as much as it is about financial returns. But condos are not a “lock-and-leave” asset without obligations—monthly and annual expenses add up. A well-prepared budget helps buyers plan for both predictable costs, such as HOA fees, and the less predictable ones, such as a refrigerator giving out in the middle of high season. In regions like Papagayo, where condos often serve dual purposes as vacation retreats and rental properties, a realistic view of costs is what separates stress-free ownership from constant financial juggling.
How condo ownership differs from standalone home ownership
One reason buyers are drawn to condos in Playas del Coco, Playa Hermosa, Playa Panama, and Playa Ocotal is that they simplify many responsibilities compared to standalone homes. Landscaping, pool maintenance, exterior painting, and security are generally handled through HOA fees. This convenience is especially valuable for foreign owners who don’t live in Costa Rica year-round. By contrast, a standalone home requires hiring and managing contractors for each task, which can be time-consuming and often more expensive in the long run. That said, condos come with structured fees, and while predictable, they can be higher in luxury developments with extensive amenities.
HOA (Condo) Fees
Typical monthly ranges across Costa Rica
HOA fees vary widely depending on the property’s size, location, and amenities. In Papagayo-area condos, monthly fees typically range from $250 to $800. Smaller complexes with modest amenities may be on the lower end, while ocean-view towers or resort-style developments with gyms, multiple pools, and 24-hour security can be at the higher end. Compared to standalone home expenses, these fees consolidate many services, making them easier to manage but also less flexible.
What HOA fees usually include
In most Costa Rican condos, HOA fees cover maintenance of common areas—gardens, hallways, swimming pools, and sometimes gyms or tennis courts. Security is another major expense, as many communities employ round-the-clock guards or gated access systems. Landscaping, exterior repairs, and in some cases building insurance are also bundled in. Luxury complexes may include extras such as concierge services, shuttle transport, or even beach clubs, but these naturally push fees higher.
How fees vary by region and property type
Papagayo’s fees are often higher than those in the Central Valley or smaller coastal towns due to the region’s focus on high-end tourism and resort living. For example, a basic condo in Playas del Coco may have fees in the $250–$400 range, while a luxury oceanfront unit on the Papagayo Peninsula could easily top $700 per month. Buyers should also note that smaller, boutique-style developments sometimes have higher per-unit costs, since expenses are divided among fewer owners.
Utilities and Services
Electricity, water, and internet costs
Electricity is often the largest utility expense, particularly if air conditioning is used frequently. In Papagayo, monthly bills for a one- or two-bedroom condo typically run $50–$150, though heavy A/C use during the hottest months can push costs higher. Water bills are modest, averaging $10–$25 per month, while high-speed fiber optic internet—widely available—usually costs $40–$70 monthly depending on speed.
Optional services like cable or streaming packages
Many owners skip traditional cable television altogether and rely on streaming services such as Netflix, Disney+, or Apple TV, which work seamlessly with Costa Rica’s internet infrastructure. Those who prefer full cable packages can expect to pay roughly $30–$60 per month above their normal internet bill. Cell service is relatively inexpensive, with prepaid plans available from $20–$40 monthly, useful for owners who split time between Costa Rica and abroad.
How climate (air conditioning use) affects monthly bills
Electricity costs in Papagayo are directly tied to lifestyle and climate. Coastal heat often makes air conditioning feel essential, especially for rentals where guests expect cool interiors. However, savvy owners manage bills by using ceiling fans, investing in energy-efficient units, and installing smart thermostats or timers. Ocean-breezy locations—like elevated condos in Playa Ocotal—may require less A/C, resulting in noticeably lower bills. Either way, most expats find electricity bills to be significantly lower than in their home countries.
Property Management and Rentals
Cost of hiring a property management company
For absentee owners, hiring a property management company is almost non-negotiable. Standard fees range from $90 to $150 per month, covering basic oversight such as regular inspections, coordination with the HOA, and emergency response. This ensures the condo remains secure and in good condition even when owners are abroad.
Additional services like bill payment, housekeeping, and maintenance
Most property managers offer add-ons: bill payment services, weekly housekeeping, or arranging minor repairs. These services often cost $20–$50 per visit for cleaning, and slightly more for handyman work. For rental condos, turnover cleanings are essential, and some owners choose linen services or deep cleans at additional cost.
Commission structures if you rent your condo short-term
If you plan to rent your condo as an Airbnb or through local agencies, management companies typically charge a commission—often 20–30% of rental income—to handle guest communication, bookings, check-ins, and cleanings. While it may sound steep, many owners find it worthwhile for peace of mind, especially given the competitive short-term rental market in Papagayo.
Repairs and Maintenance Inside Your Unit
Routine upkeep
Inside your unit, expenses vary with usage and rental activity. Appliances, plumbing, and furnishings will eventually need repair or replacement. Expect to budget $500–$1,000 annually for small repairs and touch-ups. Painting every few years keeps condos fresh, especially in salt-air environments where finishes wear faster.
Setting aside reserves for unexpected repairs
Prudent owners maintain a reserve fund—around 1–2% of the condo’s value annually—for unexpected expenses such as a broken A/C unit or new appliances. This cushion prevents financial stress when surprises arise, especially for rental-focused owners whose income depends on keeping the property guest-ready.
How oceanfront or coastal locations increase wear-and-tear
Salt air accelerates corrosion on metal fixtures, outdoor furniture, and appliances. Oceanfront condos, particularly those in Hermosa or Panama, require more frequent maintenance. Stainless steel appliances, dehumidifiers, and protective coatings for furniture can extend lifespans but still add to ongoing costs. Inland condos—such as those slightly set back in Playas del Coco—tend to experience less aggressive wear.
Insurance and Taxes
Condo insurance requirements
Condo insurance is sometimes included in HOA fees, particularly in larger developments, but not always. Owners should verify coverage and supplement as needed. Independent condo insurance typically costs $300–$600 annually, covering fire, theft, and liability. Specialized policies are available for owners who rent short-term, offering additional protection against guest-related damages.
Property tax rates in Costa Rica
One pleasant surprise for foreign buyers: Costa Rica’s property tax rate is modest at 0.25% of the registered value annually. For a condo valued at $300,000, that’s just $750 per year. Taxes are paid to the local municipality, often through the property manager if the owner lives abroad.
Luxury home tax if applicable
For condos with a registered construction value above a certain threshold (around $230,000 in 2025, adjusted annually), an additional “luxury home tax” applies. Rates are progressive, starting around 0.25% and increasing to 0.55% for very high-value properties. This tax is more common in luxury developments with expansive amenities and ocean views.
Regional Insights: Papagayo and Beyond
In the Papagayo region, ongoing costs often trend higher than in other parts of Costa Rica due to the area’s luxury positioning and reliance on tourism. Playas del Coco, known for its vibrant expat scene, generally has more modest HOA fees than exclusive enclaves like Playa Hermosa or Playa Panama. Ocotal falls somewhere in the middle, offering value without sacrificing proximity to Papagayo’s attractions. Compared to the Central Valley—where condos may have HOA fees as low as $100–$200—Papagayo properties demand higher budgets but also command stronger rental income and long-term appreciation potential.
Budgeting Tips for Buyers
Creating a monthly and annual expense plan is the most effective way to manage condo ownership. Owners should include HOA fees, utilities, insurance, management, and a reserve fund, then add a margin of at least 10–15% to account for unexpected costs. This overestimation ensures no surprises derail your finances. Buyers who plan carefully often find Costa Rican condo ownership very manageable, with costs lower than in many North American resort destinations. And when done right, the rewards—both personal and financial—make the investment worthwhile.
Conclusion
Owning a condo in Costa Rica comes with ongoing expenses, but none are insurmountable with good planning. From HOA fees to electricity bills, from the occasional appliance replacement to the realities of salt-air maintenance, each component is part of the larger picture of ownership. For those considering Papagayo, understanding these costs upfront provides peace of mind and protects your investment. Condo ownership here is less about unexpected burdens and more about predictable management—ensuring your Costa Rican retreat remains a source of joy rather than stress. Contact us if you are considering purchasing a property in Costa Rica and we will be happy to answer any questions you may have.