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 President Orders Polygraph Tests for Top Officials

President Laura Fernández has widened a controversial order requiring polygraph tests for officials involved in her government's new security strategy, declaring Friday that judicial...

Costa Rica’s Northern Neighbors Are Quietly Rewriting Central America Tourism

Tourism between El Salvador and Guatemala is consolidating as one of Central America's strongest growth stories, with millions of cross-border travelers fueling a regional...

Costa Rica Braces for Rain and Thunderstorms as Tropical Wave Moves Through

Costa Rica will see unstable weather from today through June 3, with warm mornings followed by afternoon and early-evening rain across much of pur...

El Salvador Breaks Into Latin America’s Top 10 Startup Ecosystems

El Salvador has entered the top 10 startup ecosystems in Latin America for the first time. The country ranks 10th regionally and 80th globally...

El Salvador Lagoon Turns Turquoise, Drawing Crowds

One of El Salvador's most popular volcanic lakes has taken on a striking new look, and travelers are taking notice. The Laguna de Apastepeque,...

Costa Rica President Labels Opponents Communists as Government Pulls Energy Bill

President Laura Fernández lashed out at lawmakers opposing the National Electricity System Harmonization Bill, calling them a "bunch of communists" and accusing them of...

Costa Rican Boxing Star Yokasta Valle Eyes Another World Title

Costa Rican boxing star Yokasta Valle will return to the ring Saturday, May 30, with a chance to add another major belt to one...

Costa Rica Soccer Team Rocked by Off-Field Problems Before England Match

Costa Rica’s men’s national team is facing another setback at the start of Fernando “Bocha” Batista’s rebuild, after three players were removed from camp...

Argentine Cerundolo Stuns World No. 1 Sinner at French Open

In one of the most stunning upsets of the tennis season, unseeded Argentine Juan Manuel Cerundolo defeated World No. 1 Jannik Sinner in the...
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

Live prediction market odds via Kalshi. Updates every 60 seconds.
Kalshi is available to US residents 18+. The Tico Times may earn a commission from new signups.

Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel