Property owners in Costa Rica have just days left to meet the deadline for the 2026 Luxury Home Tax. The Ministry of Finance issued a reminder this week that declarations and payments must be submitted by January 15 to avoid penalties. This tax, known formally as the Impuesto Solidario para el Fortalecimiento de Programas de Vivienda, targets high-value residences and funds social housing initiatives across the country.
The tax applies to homes used for living, occasional stays, or recreation if their construction value, including fixed installations, exceeds ₡143 million. This base value comes from Decree Ejecutivo Nº 45358-H, released on December 19, and accounts for annual adjustments based on inflation. Property owners, including expats who own homes directly or through corporations, need to check their property’s assessed value against this limit. Local governments provide these valuations, but owners can request updates if needed.
Rates start at 0.25% on values up to ₡359 million and rise progressively. For example, the portion between ₡359 million and ₡720 million faces a 0.30% rate, climbing to 0.55% for any amount over ₡2.162 billion. Owners calculate the tax on the full value above the threshold, not just the excess. Those who bought qualifying properties in 2025 must still declare for 2026.
Expats often hold properties through corporations, which adds a layer to filing. In these cases, the corporation files the declaration, but the tax remains due on the property itself. Foreign residents should confirm their setup with a local accountant to ensure compliance, as the process ties into broader tax obligations like corporate taxes.
To file, use Form D-174, available through the Ministry’s online platform, TRIBU-CR’s Oficina Virtual. Log in with your DIMEX or other ID, enter property details, and calculate the amount. Payment options include online transfers via IBAN, or in-person at Banco de Costa Rica or BAC branches. The system generates a receipt upon completion.
Missing the January 15 cutoff triggers penalties under the tax code, including interest and fines that can add up quickly. The Ministry reports that late filers last year faced surcharges starting at 1% per month, plus potential audits. Officials stress that timely payment supports housing programs for low-income families, a key part of Costa Rica’s social framework.
For expats navigating this for the first time, resources abound. The Ministry’s website offers guides in Spanish, with English translations available through community groups or legal services. Real estate associations like the Costa Rica Global Association of Realtors provide checklists tailored to international owners.
As Costa Rica’s real estate market draws more foreign buyers, taxes like this one highlight the need for awareness. Properties in areas like Guanacaste or the Central Valley often hit the threshold due to rising values. Owners can appeal valuations if they believe errors exist, but appeals must happen before filing.
The Ministry plans no extensions this year, citing smooth online systems. With the deadline approaching, property owners should act now to review records and submit.
