Costa Rica Luxury Home Tax
If if you're wondering which properties this tax applies to you might be surprised. They include houses, condos, and apartments that have a construction or building value that exceeds a certain amount. (See Table Below) The amount is determined by the Tax Office.
The Luxury Home Tax is due January 15th of each year. So, who is responsible for the tax when it is due? The individual that owned the property on January 1st is the one required to pay the tax. This is a consideration when purchasing a home in Costa Rica.
So what all applies to the value?
There are two parts to the equation, Land and Improvements also called Construction.First, determine the improved value because this is the amount used to determine if the property is exempt. For the current year (2018) if the construction exceeds ¢129.000.000 colones (approximately $230,000.00 US dollars) the property would be exempt.
In addition to the primary construction, you're outbuildings may be considered. If the property contains palapas, swimming pools, perimeter walls, internal streets, sports courts, etc; these types of facilities would also apply to the construction value. For assistance determining the construction value of your property consult the Manual of Unitary Base Values for Constructive Typology. The manual and associated tool can be accessed at Ministry of Finance.
If the construction value exceeds the exempt amount established by the Tax Office you must file. After you have determined the construction value, you calculate the value of the associated land per the valuation parameters. The sum of the Land and Improvements/Construction is the total value of the property to be declared.
Costa Rica Form D-179 Is Filed Every 3 Years
In addition to paying the tax annually, every three years property owners must complete form D-179. (“Formulario Único de Inscripción, Declaración y Pago Impuesto Solidario para el Fortalecimiento de Programas de Vivienda, Ley 8683“.) The Tax Office has provided the following link for additional information regarding this requirement:. Ministry of Finance.
The Tax Office publishes the tax guidelines that apply to the following year within late December.
The tax operates on a sliding scale, requiring property owners to pay between 0.25 and 0.55 percent extra depending on the construction value of your home.
