No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeArchiveOnly 30 percent pay luxury home tax

Only 30 percent pay luxury home tax

An estimated 7,000 homeowners have not paid the tax on their homes valued at ¢ 100 million (nearly $179,000) or more in Costa Rica. With the Jan. 15 deadline for paying the tax having passed, those homeowners are responsible for fines that amount to 10 times the original tax.

The Tax Administration is not backing down on their requirement that every luxury home owner file and has pledged to confront delinquents in the coming months with “an order to pay.”

Jenny Phillips, finance minister, said the low number of filers is evidence “that tax payers in this country are not educated in paying taxes.”

She added, “We have been announcing this everywhere. Nobody in this country can argue that they didn´t know about the law.”

Legislators approved the law in October 2008 as a means to raise money for housing for the poor. Known as the “impuesto de solidaridad” (solidarity tax), financial experts expect the tax to raise as much as ¢ 12.5 billion (almost $22.4 million) a year.

The original deadline for the first payment was Dec. 31, but flaws in the system led officials to extend the deadline to Jan. 15. Responding to claims the tax was complicated to file, Phillips said, “This ministry administers taxes. (They are) taxes that are complicated. We would be lying if we didn´t say the following: The majority of taxpayers have to look for specialists.”

Alluding to the supposition that such taxpayers have money to hire help, she said, “This tax is directed at people who have homes valued at more than ¢ 100 million.” There´s no excuse, she added, “Those that haven´t presented their declaration, have not done so simply because they don´t want to.”

Trending Now

Nations Revive Plastic Treaty Hopes After Tokyo Talks Signal Progress

Delegates from key nations wrapped up three days of informal discussions in Tokyo on Tuesday, describing the sessions as constructive steps toward reviving a...

INCOFER Weighs Monorail Against Tunnel for Direct Link from Airport to Electric Train

Officials from the Instituto Costarricense de Ferrocarriles (INCOFER) are carrying out a feasibility study on how to link the Juan Santamaría International Airport directly...

Costa Rica Backs Grynspan to Lead United Nations Starting 2027

Costa Rica formally entered former Vice President Rebeca Grynspan into the race for United Nations Secretary-General on Tuesday. The government sent a diplomatic note...

Celso Gamboa Admits He Met DEA Undercover Agents and Informants

Former Public Security Minister and Supreme Court magistrate Celso Gamboa Sánchez admitted he held at least two meetings with undercover agents and DEA informants....

Guatemalan journalist Zamora says his country’s justice system is a criminal structure

Prominent Guatemalan journalist José Rubén Zamora says the justice system in his country operates like a criminal structure, and he said he was prepared...

Apple Sports Launches in Costa Rica as App Reaches 80 Countries Worldwide

Apple Sports is now available in Costa Rica after Apple expanded the iPhone app into 36 additional countries and territories across Latin America and...
Avatar
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica