Real estate Luxury tax

The Government of Costa Rica presented the luxury tax on houses valued at more than 100 million colones in 2008. It is also known as the "Solidarity Tax for the Strengthening of Housing Programs" and is paid in addition to the existing property taxes.
Luxury tax is based on the market value of the house. It is not calculated on the basis of the land on which the house is built. This is how it is calculated:

The tax on residences that are valued

• between 100 million colones ($ 180,800) and 750 million colones ($ 1,356,000) is 0.25% of the market value. 
• between 750 million colones ($ 1.356 million) and 1.25 billion colones ($ 2.260.000) it is 0.35%
• between 1.25 billion colones ($ 2,260,000), but less than 1.75 billion colones ($ 3,164,000) it is 0.45%
• on all houses valued at more than that the tax is 0.55%

The tax also covers condominiums. Each household is evaluated separately for the valuation and the level of taxes. The common area that is used for recreational purposes to be taken accordingly.

The Government of Costa Rica expects property owners to evaluate the tax and declare on their own. Of course, the inspection has to check if the correct amount of tax has been paid. The luxury tax on Houses is calculated on an annual basis and the payment of all the first of January of each year is due.

The Home Ownership Tax normally affects individuals with a high net worth. What many do not understand is that the tax is due solely to the structure that is built on a plot. Therefore, most people do not really fall into the category that is required to pay luxury tax on Houses.