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

Costa Rica Court Orders Protection Plan for Playa Blanca After 32-Year Delay

Costa Rica’s Constitutional Court has ordered environmental authorities to create a long-delayed management plan for the protected marine wetland at Playa Blanca, adding a...

Argentine Hope Etcheverry Advances to US Open Second Week

Tomás Martín Etcheverry carried Argentina’s flag into the second week of the US Open on Friday, defeating countryman Mariano Navone 6-4, 6-4, 6-3 in...

Costa Rica Heads Into Peak Hurricane Season Without a Single Hurricane

The Atlantic has reached the second week of September without a single hurricane. That has not happened in a very long time, and forecasters...

Rare Blue Octopus Returns to Galápagos as a Newly Identified Species

The rare blue octopus that surprised scientists has returned to the Galápagos Islands. The specimen, about the size of a golf ball, will be...

Costa Rica Expects Major Cruise Tourism Jump in Puntarenas

Costa Rica expects around 150,000 cruise passengers to arrive in Puntarenas during the 2026–2027 season, a sharp increase that could bring more business to...

A Night With Costa Rica Soccer Fans in Perez Zeledon

Perez Zeledon is home to a team in the first division of Costa Rica soccer. Known as Los Guerreros del Sur, the club has...

Costa Rica Renters Face Major Barriers to Buying a Home

More than eight out of every 10 Costa Rican households that rent would face serious income barriers if they tried to finance even a...

Costa Rica Issues Green Alert as Rincón de la Vieja Activity Increases

Costa Rica has placed five areas near Rincón de la Vieja Volcano under a preventive green alert after more than 100 eruptions were recorded...

Argentina Takes Center Stage as Navone, Etcheverry Advance at US Open

Argentina is guaranteed a place in the fourth round of the US Open after Mariano Navone and Tomás Martín Etcheverry both advanced Wednesday, setting...
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