Property Taxes – Costa Rica

This time i want to talk about the property Taxes, and gives some highlights important to consider:

  1. This tax is handle by the local government where the property is locate.
  2. In case a person has a sole property,  can apply for an exemption. this exemption if for 45 minimum salaries. The tax should be paid for the excess of that amount. Around $20.000. In fact is possible to ask for an exemption for previous year (up to 5 years).
  3. The tax debtors are:
  • The owner of the property, 
  • the Owner of a  “right of use” in the Maritime Zone, registered in the Local Government.
  • the Concessioner in the Maritime Zone. 

     4. The amount or price used to define the Tax, is the price registered on the Local Government on the january 1st of the year where the tax should be paid.

     5. The owner of the property should complete a declaration about the value of the property at least every 5 years. Most of Local Government has a forms to fulfill.  

     6. How the Local Government define the price of the property:
  • The local Government appraise the properties in the area where your property is locate at least every 5 years.  
  • The local government can appraise your property one time every 5 years. 
  • If a property has a (new) mortgage, a Option Purchase or any other contract registered, then the Local Government can use the amount of the mortgage as the new price of the property.
  • if the property has more than one Mortgage, then they sum of all amounts of these mortgages.
  • The price given by the owner in the value declaration. (if the amount is higher than the price registered)
7. The tariff of this tax is 0.25% of the registered price of the property.
This is a brief explanation about this Tax, there a many many things to consider, and I just want to gives some items to consider, but, taking in consideration that this tax is handle for each Local Government, is better to contact a Lawyer or visit the Municipality before.
Posted in English, real Estate, Taxes.

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