No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

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

Paulo Wanchope expected back at Herediano for a third spell in charge

The former Manchester City and West Ham striker is reported to be closing an agreement to take over at Herediano, a job he has held twice before. The club has not announced it.

Costa Rica’s Wild Capuchin Monkeys Are Using AI Touchscreens

Wild white-faced capuchin monkeys in Costa Rica are learning to use a touchscreen in the middle of the forest, giving researchers a new way...

Five Costa Rican Surfers Advance at Playa Hermosa WSL Event

Five Costa Rican surfers remain in contention at the Garabito Surf City Pro after advancing to the round of 32 at the World Surf...

One of Costa Rica’s Must-Do Trips: The Water Taxi from Sierpe to Drake Bay

There are some trips in Costa Rica where the journey is every bit as memorable as the destination. The water taxi from Sierpe to...

What the Caribbean Green Alert Means for Your Weekend Plans

If you are going to the Caribbean coast or the Northern Zone over the next few days, plan for rain and give yourself more...

U.S. and Costa Rica Discuss Deeper Security Cooperation

U.S. Secretary of State Marco Rubio spoke with Costa Rican President Laura Fernández today as the two countries look to deepen security cooperation amid...

What happened to Galeria Namu?

Founded in 1998, Galeria Namu had become a must-visit attraction for tourists visiting San Jose, as well as for many nationals, interested in seeing...

Brandon Nakashima Saves Three Match Points to Stun Daniil Medvedev at Cincinnati Open

Brandon Nakashima saved three consecutive match points before completing a dramatic comeback against Daniil Medvedev on Tuesday at the Cincinnati Open. The 27th-seeded American...

General Cañas Highway Lane Closures Begin Monday in Costa Rica

Drivers using the General Cañas Highway between Alajuela and San José should prepare for additional congestion beginning Monday as crews carry out eight days...
🌴 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