* updated for 2024 luxury home tax in Costa Rica

Luxury homes in Costa Rica have a yearly solidarity tax based on the value of the property. For this year, the minimum threshhold to be considered a luxury home in Costa Rica, for tax purposes, starts at ¢145.000.000 colones which is approximately $279,000 and above, depending on the current exchange rate. The threshhold considers only the value of the structures and not the terrain value.

The luxury home tax rate in Costa Rica is calculated in colones and ranges from .25% to .55% of the calculated value of the luxury home.

The Solidarity Tax for the Strengthening of Housing Programs in Costa Rica was established in 2009 and is based on the value of real estate for residential use, regardless of whether the luxury home is used on a regular, occasional or recreational basis, and includes both fixed and permanent installations.

The tax was created as part of a broader national program to finance housing options for people in extreme poverty in Costa Rica. Payment of this tax is not deductible for income tax purposes in Costa Rica.

Rate 2024 luxury home value
0.25% Up to 364 million colones
0.30% On the excess of 364 million colones
0.35% On the excess of 731 million colones
0.40% On the excess of 1,096 million colones
0.45% On the excess of 1,463 million colones
0.50% On the excess of 1,826 million colones
0.55% On the excess of 2,193 million colones

*The luxury home tax qualification depends only on home value not property, but the actual tax rate is based on the calculated value (in colones) of the house and land. Apply the appropriate exchange rate for dollars.

Paying the luxury home tax in Costa Rica

This tax is declared every three years but its payment is annual. The tax must be paid within the first 15 days of the month of January of the following year.

The taxpayers of this tax can complete the declaration and payment through the Virtual Tax Administration portal for the Ministry of Finance of Costa Rica, called ATV.
Costa Ricans must use their identification number and foreigners who reside outside the country and who have a special tax identification number (NITE) or document of Migratory identification for foreigners (DIMEX) must use the electronic form for the presentation of the declaration. Foreigners who do not have a bank account in the Costa Rican financial system must make their payment by direct international transfer to the Ministry of Finance SWIFT account available on their website.

Real estate that is used on a regular, occasional or recreational basis, and with a value greater than ¢145 million (approx. $279,000) is subject to the payment of the Solidarity Tax for the Strengthening of Housing Programs.

Do foreigners have to pay luxury home tax in Costa Rica?

Foreign ownership of property in Costa Rica is very common. Any foreign citizen can validly own real estate in Costa Rica. They have the same rights and obligations as any Costa Rican citizen.

So, YES, if you’re a foreigner and own a home valued above $220K in Costa Rica, you’ll need to pay the luxury tax every year.

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