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Luxury Tax 2020

 

Due: January 15 of each year.

The Luxury Tax (Solidarity Tax for the Strengthening of Housing Programs) only applies to houses, condos, or apartments over a certain construction value (133,148,400.00 colones for 2020, approx. US $237,765K – this amount is adjusted each year).

Amount: The amount of tax to be paid is on a scale from 0.25% to 0.55% per year, depending on the value of the property. This tax is due for all applicable properties from 2019 and forward.
Those liable for this tax shall fill out the form called “Formulario Único de Inscripción, Declaración y Pago Impuesto Solidario para el Fortalecimiento de Programas de Vivienda, Ley 8683” every 3 years. Next time to file it will be on or before January 15th, 2022, as the previous one was on January 15, 2019. The Tax Office publishes the parameters to apply for the following year sometime in late December each year.

Credit to: GM Attorneys, a premium boutique Law Firm with offices in Flamingo Beach, Tamarindo, Nosara and San Jose.

As we have discussed in previous articles, there are numerous taxes that are paid throughout the fiscal year. To ensure you do not incur any penalties or fines, it is important all applicable annual taxes are paid on time. If you have any questions, please don’t hesitate to contact us at info@gmattorneyscr.com

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It’s annual Tax Time

Like in other global markets, Costa Rica also has its share of annual taxes. This article will be discussing the annual taxes due for anyone who is an owner of real estate or has a Costa Rican corporation. Not all taxes are applicable to everyone. We will discuss each type below.

 

Luxury Tax

Due: January 15 of each year.

The Luxury Tax (Solidarity Tax for the Strengthening of Housing Programs) only applies to houses, condos, or apartments over a certain construction value(131,000,000.00 colones in 2019, approx. US $232K – this amount is adjusted each year). The amount for 2020 will be available in December and we will update this article with the 2020 amount.

 

Annual Corporation Tax

Due: January 31stof each year.

All corporations, subsidiaries, and limited liability companies that are currently registered before the National Registry will be subject to pay an annual tax. (Law # 9428: “Tax over legal entities”)

NOTE: The “annual corporate tax” is aside from the VAT Tax, or Income Tax, the corporation is subject to those indicated in the event the corporation is active and is registered as a tax payer.

 

Property Tax & Garbage Collection

Due: March 31stof each year.

Property owners must pay Property Tax (Impuestos Bienes Inmuebles) and garbage collection fee (recolección basura) to the Municipal Government where the property is located.

The garbage collection fee is a fixed amount, adjusted yearly, that must be collected along with the property taxes. The municipality determines the fee based on location and on whether the property is used for residential or commercial purposes.

As we have discussed in previous articles, there are numerous taxes that are paid throughout the fiscal year. To ensure you do not incur any penalties or fines, it is important all applicable annual taxes are paid on time. If you have any questions, please don’t hesitate to contact us at info@gmattorneyscr.com

Credit to: GM Attorneys, a premium boutique Law Firm with offices in Flamingo Beach, Tamarindo, Nosara and San Jose.