Costa Rica's "Luxury Home Tax": Does Your Property Qualify? (2025-2026 Guide)

Owning real estate in Costa Rica is an extraordinary investment, but it comes with specific fiscal responsibilities beyond standard municipal taxes. One topic that generates the most confusion among foreign investors is the Solidarity Tax for the Strengthening of Housing Programs (Impuesto Solidario), commonly referred to as the "Luxury Home Tax."

Understanding whether your property is subject to this tax is vital to avoiding unnecessary fines with the Ministry of Finance (Hacienda). Below, we explain the "Golden Rule" for calculating it and why many expensive properties actually end up being tax-exempt.

The Golden Rule: Construction vs. Land

The most common mistake investors make is assuming the tax is based on the property's market listing price. This is false. The law establishes a specific "trigger": the value of the construction.

For a property to be liable for this tax, the fiscal value of its main construction and permanent installations (main building, ranchos, swimming pools, perimeter walls, internal electrical systems) must exceed a specific tax-exempt threshold established by law.

• The Magic Number: For the most recent fiscal period, this threshold is approximately ₡145,000,000 CRC (roughly $282,000 USD depending on the exchange rate).
• The Key Takeaway: If the value of your construction ("bricks and mortar") is lower than this figure, you are exempt, regardless of whether the land itself is worth millions of dollars.

What Happens If I Cross the Threshold?

This is where the "financial trick" of this tax lies. If you determine that the value of your construction exceeds the ~₡145 million mark, you automatically become a taxpayer. At that moment, the basis for calculating the tax changes: it is no longer calculated only on the construction, but on the TOTAL value of the property (Land + Construction).

The rate is progressive, usually starting at 0.25% of the total value for the first bracket, and increasing in tiers up to 0.55% for ultra-luxury estates.

Practical Examples

To visualize this better, let's compare two typical investment scenarios in Costa Rica:

• Case A: The Estate in Santa Ana (Exempt) You own a spectacular lot valued at $400,000 due to its premium location. The house built on it is older and modest, with a fiscal construction value of $200,000 (approx. ₡103 million).

  • Verdict: Even though the total property is worth $600,000, because the construction did not reach the ₡145 million cap, you DO NOT pay the luxury tax.

• Case B: The Penthouse in Jacó (Liable) You purchased a beachfront condo. The proportional value of the land is low, but the apartment features luxury finishes valued at $300,000 (approx. ₡155 million).

  • Verdict: The construction exceeded the limit. You must now pay 0.25% on the total value of the property annually.

How Do I Determine the "Real" Fiscal Value?

You cannot use the market price or the listing price found on propiedades.cr. The Ministry of Finance requires the use of the Manual of Unit Base Values by Constructive Typology (Manual de Valores Base Unitarios).

It is highly recommended to hire a licensed appraiser (Perito—engineer or architect) to perform a technical valuation. They will measure the exact square footage, count the bathrooms, and analyze the quality of materials (floors, ceilings, windows) to assign the correct fiscal value according to Hacienda's tables. If the result exceeds the exempt amount, you must file the sworn declaration (Form D-179) on the ATV platform.

Important Dates and Obligations

The Solidarity Tax accrues on January 1st of each year and must be paid no later than January 15th.

• Declaration: Must be updated every three years (the last massive declaration cycle was in 2025; the next will be in 2028), or whenever you make improvements that increase the property's value.
• Payment: Must be made annually.

If you are unsure about the status of a property you wish to buy, ask the seller for their latest D-179 declaration or consult with a tax attorney before closing the deal.