New tax for luxury houses in Costa Rica

The Legislative Assembly approved a new tax that will have to be paid for properties with a market value higher than $180,000.

Friday, October 31, 2008

The tax will be valid for ten years, and will be scaled based on the value of the property, and will only be levied on the value of the residence.

The Ministry of Finance estimates that it would collect $38 million, while a study by the national assembly estimate that it would be $17.3

The Congressional Department of Budget Analysis reported that their are 6,492 properties with values higher than $180,000 record at the registry.

More on this topic

Costa Rica and the New Tax Plans

March 2017

Under study in the Legislature are 26 bills involving new taxes, increases of some existing ones and redistribution of others.

An analysis piece by Nacion.com notes that the Legislative Assembly is currently considering 26 bills introduced during the current administration which in some way involve the issue of taxes.  "... Of the total projects, 50% are attempts to raise them or create a new type of tax or fees. "

Panama: Official Appraisals Eliminated

October 2015

The Assembly has approved a law granting administrative autonomy to municipalities and has eliminated appraisals of properties declared as official, as established by Law 8 of 2010.

Prensa.com reports that "... The document approved amends Article 770 of the Tax Code, so that once the project is sanctioned, the general and partial assessments are made in compliance with the requirements established by the National Directorate of Cadastral Information and Valuation by the National Authority of Land Management (Anati ), provided that they meet a schedule properly structured in accordance with the procedures established by the standard. "

Costa Rica: Luxury Residences Tax Comes Into Effect

October 2009

Today, a new tax for residences worth more than $170.000 (¢100 million) comes into effect in Costa Rica.

The law, dubbed 'Solidary Tax' ('Impuesto Solidario'), will tax luxury houses for ten years.

"Every three years, on the first 15 days of January, homeowners will have to update the fiscal value of their property by means of an electronic statement. It won't be deductible from income taxes", reports Nacion.com.

Panama: Incentives for Updating Property Value

July 2009

Property tax would decrease from 2% to 1% for those who willingly update the value of their properties in the civil registry.

With these modifications to property taxes, the government of Panama is looking for taxpayers to update the value of their lots and properties, in order to increase collection. With the modifications, an estimated $250 million could be collected, up from the $80 million being collected now.

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Barrantes & Associates is a full service Costa Rica Law firm located in San Jose Costa Rica. We have been in business since 1999. All our Attorneys are English speaking.
Operates in Costa Rica and Panama
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