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

What Private Elder Care Really Costs in Costa Rica

Private elder care in Costa Rica can cost far more than many pensions cover, leaving families to bridge a growing gap as the country’s...

Strong 5.4 Earthquake Shakes Costa Rica Near Jacó

A strong earthquake shook Costa Rica shortly after midday Tuesday, with reports of movement across the Central Pacific, the Central Valley and parts of...

Bite Free, Naturally: Plant-Based Mosquito Repellents in Costa Rica

There's nothing worse than an itchy mosquito bite — except, in Costa Rica, what that bite might carry. With the rainy season in full...

Costa Rica Confirms Two Mpox Cases in San José

Costa Rica confirmed two mpox cases in San José, prompting health authorities to activate epidemiological surveillance, case investigations and contact tracing. The patients are...

Costa Rica Approves Limón Cruise Terminal and Marina Project

President Laura Fernández signed a law on Thursday that clears the path for a marina and dedicated cruise terminal in Puerto Limón, a long-delayed...

Argentina Survives Cabo Verde Scare in World Cup Thriller

Argentina kept its World Cup title defense alive Friday night, but only after Cabo Verde pushed the defending champions to the edge in one...

Costa Rica Bill Could Make Some Small Loans More Expensive

A government-backed bill moving through Costa Rica’s Legislative Assembly could make some small consumer loans more expensive by shifting them into a category that...

Spain Knocks Out Portugal With Late World Cup Winner

Spain waited until stoppage time to break Portugal, then walked out of Dallas with a 1-0 win, a place in the World Cup quarterfinals,...

Costa Rica Police Warn Drivers Not to Take Cars Onto Beaches

Costa Rica’s Traffic Police are warning drivers not to take cars, motorcycles or ATVs onto the beaches as midyear vacation travel brings more families...
Avatar
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel