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

Costa Rica Ransomware Attacks Rise 39%, Microsoft Reports

Ransomware attacks targeting Costa Rica increased by 39% over the past year, placing us among the world's ten most affected nations, according to Microsoft's...

Rents in Costa Rica Outpace Inflation Nearly 10 to 1 but Leases Cap the Hit

Rents rose 3.27% in a year while inflation was 0.34%. Here is what the law lets your landlord charge mid-lease and at renewal.

Costa Rica’s Trash Problem Begins in Our Own Neighborhoods

I was walking up the street toward my house when I saw a young man coming from the other direction casually toss a bit...

1 Million Coral Embryos Return to a Costa Rica Reef in a National First

Researchers in Manzanillo raised coral larvae in a lab for the first time in Costa Rica and returned nearly 1 million embryos to the reef.

Beéle Concert in Costa Rica Canceled Hours Before Show

The concert by Colombian singer Beéle scheduled for tonight in Costa Rica has been canceled less than 24 hours before the show, leaving ticket...

Some Liberia Hospital Patients Have Waited Nearly a Week in a Chair for a Bed

Patients at Guanacaste's main public hospital in Liberia say they have spent up to six days sleeping in emergency-room chairs while waiting for a bed.

National Team Defender Among Four Held in Costa Rica Loan-Shark Extortion Probe

Cartaginés right-back Carlos Barahona, 24, was detained in pre-dawn raids in Cartago as a suspect in extortion tied to gota a gota loans.

Three Paperwork Problems Led Costa Rica to Deny Beéle Concert Permit

Immigration says a contract filed for the Beéle concert listed a signer who was not in Costa Rica. Ticket refunds start automatically Monday.

The Night Costa Rica Witnessed Central America’s Worst Soccer Tragedy

This month marks the 30th anniversary of the worst soccer tragedy in Central American history. The setting was Estadio Mateo Flores in Guatemala City....
Loading…

Latest News from Costa Rica

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