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

CONCACAF Calls for Reckoning With Infantino’s FIFA Leadership

North and Central American football's governing body CONCACAF yesterday called for a "comprehensive reckoning with" Gianni Infantino's leadership of FIFA after his aborted plan...

Costa Rica Approves Sharp Drop in Super Gasoline and Diesel Prices

Drivers in Costa Rica will soon pay substantially less for super gasoline and diesel after regulators approved fuel-price reductions of up to ₡79 per...

Chris Hemsworth Shares Terrifying Costa Rica Flight

Chris Hemsworth has shared frightening footage from a small-plane flight during his family vacation in Costa Rica, showing lightning flashing outside the aircraft as...

Costa Rica Ends Virtual Court Hearing Agreement for Prisoners

Costa Rica’s Justice Ministry has ended its agreement with the Judicial Branch to conduct virtual court hearings from prison, a decision that could require...

Serena and Venus Williams Set for Cincinnati Open Doubles Return

Serena and Venus Williams will play doubles together for the first time since 2022 after the Cincinnati Open handed the sisters a wildcard into...

Costa Rica Proposes Major Overhaul of Courts and State Oversight

Lawmakers from Costa Rica's governing party filed a package of constitutional reform bills on Tuesday that would end the Comptroller General's power to block...

Costa Rica Suspends Florencio del Castillo Toll Due To Romería

Those brave enough to drive towards Cartago during Costa Rica’s annual Romería will receive a temporary break from toll payments on the Florencio del...

Guatemala’s Fuego Volcano Eruption Forces 1,700 Evacuations

A powerful eruption of Guatemala’s Fuego Volcano has forced authorities to evacuate at least 1,700 residents from areas near the crater and declare the...

Carlos Alcaraz Withdraws From Cincinnati Open With Wrist Injury

Carlos Alcaraz has withdrawn from the 2026 Cincinnati Open as he continues to recover from the wrist injury that has kept him away from...
🌴 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