The latest news this week 28th August 2007 regarding the agreement between the Ministerio de Hacienda and the Movimiento Libertario is that “if” this new property tax law is implemented as is, the new Costa Rica property tax scale will affect all homes that are worth a minimum of c100,000,000 Costa Rica colones which at today’s rate 29th August 2007 of 515.70 is US$193,911.

[custom_script adID=149]

The orginal proposal was to tax the combined value of the land and also the home on that land, now they are not including the land but are referring to the total construction which would include swimming pool and BBQ area.

According to the diputado Carlos Gutierrez, the idea all along is to increase the charge for luxury homes without “damage to the the middle class.”

Should this proposal become law, the following property tax scale will apply

  1. 100,000,000 – 750,000,000 colones will pay 0.25% in property taxes
    US$193,911 – US$1,454,333
  2. 750,000,000 – 1,250,000,000 colones will pay 0.35% in property taxes
    US$1,454,333 – US$2,423,889
  3. 1,250,000,000 – 1,750,000,000 colones will pay 0.45% in property taxes
    US$2,423,889 – US$3,393,445
  4. More than 1,750,000,000 colones will pay 0.55% in property taxes

You can see a FREE video interview with Attorney Roger Petersen about Costa Rica Property Taxes here.

To rent or buy this 54 minute video with Costa Rica Attorney Roger Petersen please visit our Video On Demand page here.

[custom_script adID=155]

What’s The Bottom Line?

For the vast majority of us, Costa Rica property taxes will remain the same incredibly low .25%. It’s only when you own a home worth more than US$1,454,333 will you pay more property taxes that we are paying today.

I have stated before that it would have been better to double the property taxes on all homes worth $250K or more, yes! That would affect most of us personally but we would still be paying far less in property taxes than most developed nations.

This would not “damage” the Costa Rica middle class and would generate far more, much needed revenue for the Costa Rica government than this proposal.

Randall Zamora’s article entitled ‘Costa Ricas’ New Property Tax Proposal – The government wants a new system. (September 2006)’ is worth reading.

[custom_script adID=97]

Written by Scott Oliver, author of How To Buy Costa Rica Real Estate Without Losing Your Camisa and Costa Rica’s Guide To Making Money Offshore.

[custom_script adID=153]

Are you into beautiful Costa Rica?

All interesting things you want to know about Costa Rica are right here in our newsletter! Enter your email and press "subscribe" button.

Leave a Reply

Your email address will not be published. Required fields are marked *