Delinquent Luxury Home Taxpayers Face Big Fines

January 29, 2010

The estimated 7,000 homeowners who missed the Jan. 15 deadline for paying taxes on their homes valued at ¢100 million (nearly $179,000) or more in Costa Rica face fines amounting to 10 times the original tax.

The Tax Administration is not backing down on its requirement that owners of every luxury home in the country file and pay the proper taxes and has pledged to confront delinquents in the coming months with “an order to pay.”

Finance Minister Jenny Phillips said the low number of filers is evidence “that taxpayers 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 luxury home tax 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 that filing under the new law is too complicated, 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 sufficient money to hire help, she said, “This tax is directed at people who have homes valued at more than ¢100 million. … Those who haven’t presented their declaration have not done so simply because they don’t want to.”

–Chrissie Long

Facebook Comments

You may be interested

Pic of the Day: Costa Rica’s Isla Nublar (aka Cocos Island)
Pic of the Day
81 views
Pic of the Day
81 views

Pic of the Day: Costa Rica’s Isla Nublar (aka Cocos Island)

Alejandro Zúñiga - April 18, 2019

Isla Nublar, the setting for much of the "Jurassic Park" series, is unfortunately not a real Costa Rican island. Cocos…

Costa Rica holds Maduro regime responsible for diplomat’s safety
Costa Rica
12 views
Costa Rica
12 views

Costa Rica holds Maduro regime responsible for diplomat’s safety

AFP and The Tico Times - April 18, 2019

The Costa Rican Foreign Ministry said on Wednesday that it places responsibility with the Venezuelan government of Nicolás Maduro for…

Venezuela withdraws diplomatic credential from Costa Rican diplomat
Latin America
28 views
Latin America
28 views

Venezuela withdraws diplomatic credential from Costa Rican diplomat

AFP and The Tico Times - April 17, 2019

Venezuela withdrew the diplomatic credential from the Costa Rican chargé d'affaires on Tuesday in retaliation for the country’s acceptance of…

Do NOT follow this link or you will be banned from the site!