Costa Rican legislators have approved a tax on luxury homes that will help eradicate “precarios” (shantytowns), although it is not known yet how much money the tax will raise and how it will actually be used.
The luxury home tax is for a period of 10 years and is applied to all homes valued at more than ¢110 million colones ($187,000 at the current exchange rate). The tax applies only to the value of the construction and not the land that the homes sit on.
It will be calculated as following:
- Between ¢100 million and ¢250 million = 0.25%.
- Above ¢250 million and up to ¢500 million = 0.30%.
- Above ¢500 million and up to ¢750 million = 0.35%.
- Above ¢750 million and up to ¢1.000 million = 0.40%.
- Aove ¢1.000 million and up to ¢1.250 million = 0.45%.
- Above ¢1.250 million and up to ¢1.500 million = 0.50%.
- Above ¢1.500 million = 0.55%
The new tax is to be paid on a yearly basis starting with the last quarter of year 2009 and would be due between the 1st and the 15th of January of each year. It is the obligation of the owner to declare the value of their property with the ‘Administracion Tributario’ of their jurisdiction.