October 17th, 2009 categories: Costa Rica Real Estate Info
A new solidarity tax took effect October 1st in Costa Rica, adding a tax on luxury property. Unlike the regular property taxes which are paid at a local level, this is a tax levied by the country, a social tax to be used to provide better housing for the poor. This new graduated tax ranges from .25% to .55% and is based on the value of the improvements on the land, not the land itself. ** This “temporary” tax for the next 10 years is estimated by the Costa Rican government to bring in $45 million/year and they estimate 40,000 people are living in inadequate housing. For the gringos who don’t like seeing substandard housing – now you’ll be doing something about it. At least they’re upfront enough to call it a Social Tax. Read what one luxury colleague in Costa Rica has to say:
Since this is a tax only on the improvements, there won’t be any additional taxes on lot purchases.
** 10/20/2009. Clarification just received: while there is no tax on vacant land in luxury locations, gated communities and resorts, for those properties with improvements, the tax covers both the improvements and the land.