HomeTopicsExpat LivingWhat Is Costa Rica's Luxury Home Tax

What Is Costa Rica’s Luxury Home Tax

If you own a home in Costa Rica and the building alone is valued above ₡143 million, you owe a tax that many owners have never heard of until they are late paying it. It falls due every January 15.

Its real name is the Impuesto Solidario para el Fortalecimiento de Programas de Vivienda — the Solidarity Tax for the Strengthening of Housing Programs — created by Ley 8683 and in force since 2009. Everyone calls it the luxury home tax. It is not the same thing as your municipal property tax, and paying one does nothing about the other.

The threshold measures only what you built

This is where owners get caught. The ₡143 million test looks at the value of the construction and its fixed, permanent installations. The land underneath does not count toward deciding whether you owe anything.

But once you cross that line, the calculation changes shape. Hacienda then assesses the property including the land, valued from its zone maps, and if you are in a condominium your proportional share of the common areas comes in too — the administration is obliged to give you that figure.

So a modest house on an expensive lot can pass the threshold on the building and then be taxed on a total far larger than the building alone. If you are anywhere near the line, pay a certified appraiser rather than guessing.

The threshold moves every year, and it can move down

Hacienda re-sets the exempt amount each December, indexed to the consumer price index. Most years it rises with inflation. For 2026 it fell. The CPI variation for the reference period was −1.31%, which pulled the exempt amount from ₡145 million down to ₡143 million under Executive Decree 45358-H. A home that sat just under the line last year may be over it this year without a single thing changing about the house. If you were exempt in 2025 by a narrow margin, check again.

What you actually pay

The rates are progressive, applied to the taxable value in bands rather than as a single rate on the whole amount. For 2026:

Taxable valueRate
Up to ₡359 million0.25%
₡359m to ₡720m0.30%
₡720m to ₡1,081m0.35%
₡1,081m to ₡1,443m0.40%
₡1,443m to ₡1,800m0.45%
₡1,800m to ₡2,162m0.50%
Above ₡2,162m0.55%

Most owners who owe this tax at all sit in the bottom band.

Declare every three years, pay every year

These are two separate obligations and people routinely conflate them. The declaration goes on form D-174, filed through the Oficina Virtual in Hacienda’s TRIBU-CR system. You file it once every three years, updating the declared value of the property. If you bought a home during the year and it falls above the threshold, you file whether or not the three-year cycle is due.

The payment is annual, through TRIBU-CR or at the counter at authorized banks. Both the declaration and the payment are due by January 15. Older guidance still refers to form D-179 and the ATV platform. That was correct for more than a decade and is no longer current — TRIBU-CR replaced ATV, and the form number changed with it.

Missing the deadline

Late filing and late payment both carry penalties and interest under the Código de Normas y Procedimientos Tributarios. Interest is set periodically by Hacienda rather than fixed in the law, so check the current rate rather than relying on a figure you read somewhere.

Holding the property through a corporation, an SRL or a trust does not exempt it. Neither does using the house occasionally or only as a holiday home — the tax applies to residential property regardless of how often anyone sleeps there.

Where the money goes

Collections fund housing programs for families in extreme poverty. That is what the “solidarity” in the name refers to, and it is the reason the tax survived past the ten-year term originally written into Ley 8683.

Reviewed for the 2026 tax period. The exempt amount and the bracket thresholds are updated by executive decree each December.

Trending Now

Human Trafficking Cases Reach 16-Year High in Costa Rica

Costa Rica recorded 83 human trafficking victims in 2025, the highest number reported in any single year since at least 2010, according to figures...

Costa Rica Raises Alert Around Rincón de la Vieja Volcano

Costa Rica has raised the alert level for communities around Rincón de la Vieja Volcano after scientists detected increased volcanic activity, marking a further...

Costa Rica Flooding Hits More Than 400 Homes After Tropical Wave

More than 400 homes were flooded across Costa Rica over the weekend as Tropical Wave 47 brought heavy rain to several parts of the...

Costa Rica Falls Six Places in FIFA Ranking After Two Losses

Costa Rica’s national soccer team has taken another hit after a rough start to the Concacaf Nations League, dropping six places in FIFA’s live...

Costa Rica Expands Yellow Fever Vaccine Rule to Eight More Countries

Costa Ricans and legal residents planning trips to several parts of South America and the Caribbean need to check their vaccination records before heading...

Two Dead at Guanacaste Beach as Search Continues at Tarrazú Waterfall

Two young men died at Playa Cabuyal in Guanacaste and rescuers are searching for an 18-year-old swept away at a waterfall in Tarrazú after Saturday's storms.

Dollar Rebounds From Record Low but Year-End Could Favor the Colón Again

The dollar hit its highest level since June after a record low, but seasonal inflows could push it back down. Here is what banks are paying.

Costa Rica Tripled Tourism Advertising Spending Without Proven Visitor Impact

Costa Rica increased international tourism advertising spending by 223% between 2022 and 2025, but government auditors found insufficient evidence that the additional spending significantly increased visitor arrivals.

U.S. Embassy in Costa Rica Denies Visa Rumors Involving Rodrigo Chaves

Last night, the U.S. Embassy in Costa Rica rejected rumors that Washington had revoked visas belonging to serving government officials, following social media posts...
Loading…

Latest News from Costa Rica

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