Property Tax – New Luxury Tax

Property Taxes in Costa Rica

You will be pleased to know that no capital gains taxes on real estate exist
in Costa Rica, so real estate is an excellent investment. You do have to pay
yearly taxes, but they are low by U.S. standards. Yearly property taxes are on a
sliding scale up to .25 percent of the stated value of a particular property. So
on a house valued at $100,000 you pay about $250 yearly. This is a bargain
compared to what most people pay in the United States.

Property taxes are collected by the local municipal government, which
also collects a separate tax for garbage. The latter has to be paid when you
pay your property tax. Every year the author goes through this painless
procedure at the Palacio Municipal de Heredia. The taxes on my home run
about $280 including garbage. I have found the clerks at the city offices to
be very courteous and helpful.

The New tax on luxury homes

The new luxury tax law went into effect October 1, 2009 and affects owners
of homes worth more than 100 million colones or $172,000. For example,
a homeowner with a house worth just 100 million colons could expect to
pay a tax of just one-fourth of a percent. That is 250,000 colons or about
$430. The law, No. 8683, is designed to provide funds to give housing
to the extreme poor. The income from the tax is earmarked for the Banco
Hipotecario de la Vivienda, which would use the funds to build housing
for the poor now living in slums, according to law. For help see: www.
amcostarica.com/chart101209.jpg

The Complete Guide to Property Taxes and the Luxury Home Tax in
Costa Rica is a new book ebook which will help you learn how the local
government calculates, collects and spends the property taxes in Costa Rica.
The answer to your questions are all contained in this book. It has direct links
to government land valuation maps for Costa Rica, construction valuation
manuals, directory of municipal governments of Costa Rica, property tax and
luxury home tax filing forms and much more. To order a copy go to www.
costaricalaw.com/bookstore/costaricalawbooks_orderpage.html

Related Resources:

Cayman Real Estate & Vacation Rental Properties

Mexico real estate – Cancun, Playa del Carmen, Riviera Maya, Cancun

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