* 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.
*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.
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.