Property owners in Costa Rica must declare and pay the 2026 Luxury Home Tax by Wednesday, January 15. The Ministry of Finance (Costa Rica) issued a final reminder this week, warning that late submissions will incur immediate financial penalties. This annual levy funds national social housing programs and applies to all high-value residential properties, including those owned by foreign residents and corporations.
The tax formally called the Solidarity Tax for the Strengthening of Housing Programs targets homes with a construction value exceeding ₡143 million. That threshold was set by executive decree in December and adjusts for inflation annually. The valuation includes all fixed installations and is determined by local municipalities. Owners unsure of their property’s assessed value can request a current appraisal from their local government before filing.
Tax Rates and Calculation Process
Progressive tax rates apply to the property’s total declared value, not just the amount above the threshold. Rates begin at 0.25 percent for values up to ₡359 million. They increase incrementally, reaching 0.55 percent for any portion of a property’s value exceeding ₡2.162 billion. A home valued at ₡500 million, for instance, would see the first ₡359 million taxed at 0.25 percent and the remaining ₡141 million taxed at 0.30 percent.
“Timely compliance is crucial for supporting vital housing initiatives for vulnerable families across our country,” stated a Ministry of Finance official. [Translated from Spanish]
Officials confirm there will be no deadline extension this year. They cite the efficiency of the ministry’s online filing platform. The system processed a significant volume of declarations last year without major technical issues.
Filing requires Form D-174 via the ministry’s Tribu-CR Virtual Office. Owners log in using their DIMEX (Documento de Identificación Migratorio para Extranjeros) or other national ID number. After entering property details and calculating the owed amount, payment can be made electronically or in person. Approved banks include the state-owned Banco de Costa Rica. The system generates an official payment receipt upon completion.
Expatriate Owners and Corporate Structures
This obligation is particularly relevant for foreign costa rica residents and international investors. Many hold property through a Costa Rican corporation, a common legal structure for foreign ownership. In these cases, the corporation must file the tax declaration. The tax liability, however, remains attached to the physical property itself. Experts urge foreign property owners to consult a local accountant to ensure proper compliance, especially when corporate tax filings are also due.
Penalties for missing the deadline are severe. The tax code mandates monthly interest charges plus fines. Last year, late filers faced surcharges starting at one percent per month on the unpaid balance. The ministry also escalates audit reviews of delinquent accounts. Owners who believe their property valuation is incorrect must file an appeal with their municipality before submitting their tax declaration and payment.
Costa Rica’s booming real estate markets in Guanacaste and the Central Valley mean more homes now meet the taxable value threshold. With the January 15 cutoff just days away, officials urge all owners to verify their status and file promptly. The revenue directly funds a cornerstone of the nation’s social policy. Failure to act now results in unavoidable financial consequences.