Costa Rica Luxury Home Tax

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An overview of the Costa Rica Luxury Home Tax rates for 2014. The video reviews how the construction and land valuations are established to determine the amount of the luxury home tax that must be.

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Property taxes in Costa Rica are very low – only 0.25% of the registered property value. Some very large and luxurious properties are subject to a Luxury Tax that is based on a calculation that includes such features as structure size and finishings (ie travertine floors, imported faucets).

The Costa Rica Government introduced Luxury Tax on Houses valued at more than 100 million colons in 2008. The Government has said that it would use the tax money specifically to remove shanty towns from the country.

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Luxury Homes Tax. This is the most recent tax created by Costa Rica Government and will tax only residential properties, including features such as pool, tennis court, BBQ Ranch, etc; if the value gets to 128,000,000, starting at 0.25% and with a maximum tax rate of 0.55% since it is a progressive tax.

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The following are exempt from the Luxury Home Tax: Properties destined for agricultural or commercial purposes. Properties with a construction value of less than $216,500.00. Raw land. Properties owned by non-profit organizations, churches or the government. 2. tax Base The Luxury Home Tax is levied on houses with a construction value over $216,500.00.