Due date: January 15th of each year
The so called ´Solidarity Tax´ for the Strengthening of Housing Programmes (Impuesto Solidario para el Fortalecimiento de Programas de Vivienda), Law # 8683, commonly referred to as the ‘Luxury Home Tax’applies to houses, condos and apartments of which construction/building value exceeds a certain amount. Said amount and the methodology to calculate it is established by the Tax Office. The entity or person obliged to file and pay it, is that one that owns the ¨Luxury Home¨ as of January 1st.
The value of the main construction and additional or associated facilities (e.g. palapas, swimming pools, perimeter walls, internal streets, sports courts, etc.) must be determined. The Manual of Unitary Base Values for Constructive Typology and a tool are available for contributors to determine the value to be declared for the luxury tax. You can check the link provided by the Tax Office related to this matter: http://www.hacienda.go.cr/contenido/13173-impuesto-solidario
Once the value of the constructions is determined, if it exceeds the exempt amount established by the Tax Office for the particular year being analyzed, you must then calculate the value of the associated land as per the valuation parameters and then add it. The sum of these values will provide you with the total value of the property to be declared.
In 2018 the exempt amount is ¢129.000.000 colones which is more or less US$ 230,000.00 dollars.The exempt amount is adjusted each year by the Tax Office.
Those liable for this tax shall fill out every 3 years, and pay the tax annually,the formD-179’Formulario Único de Inscripción, Declaración y Pago Impuesto Solidario para el Fortalecimiento de Programas de Vivienda, Ley 8683′.For more detail information, please click the following link provided by the Tax Office: http://www.hacienda.go.cr/docs/568eaf7fc5e0a_D179%20VERSION%206-2016.%20ISO.pdf.
The next time this formality is due for all properties that apply will be 2019 and the filing must be done on or before January 15th, 2019. The Tax Office publishes the parameters to apply for the following year within lated December.
The tax operates on a sliding scale, requiring properties to pay between 0.25 and 0.55 percent extra depending on the construction valueof your home.
Therefore, seeking proper legal and accounting advice is highly advisablein order to avoid fines and penalties.