Costa Rica’s “Solidarity Tax for the Strengthening of Housing Programs”, known as the Solidarity Tax or luxury home tax, was created in 2008 by Law 8683. It is an annual tax on high-value homes, paid to the national tax administration (Hacienda). It is separate from the municipal property tax.
Who must pay the Solidarity (Luxury) Tax?
The tax applies to homes used habitually, occasionally or for vacations, including houses, condos and apartments. It applies even if the owner uses the home only a few weeks a year or rents it out on Airbnb. It also covers concession holders and occupants of the Maritime Zone. Vacant lots are not subject to the tax, whatever their value.
For 2026, a home is subject to the tax when the fiscal value of its construction exceeds ₡143,000,000, the threshold set by Decree 45358-H. The threshold is updated every year, so check the current figure before each filing.
How is the Solidarity (Luxury) Tax calculated?
The test starts with the value of the main building. If it exceeds the threshold, the taxable value then includes the land, accessory structures (pools, ranchos, sports courts, perimeter walls, private roads) and, in a condominium, the owner’s share of the common areas. A common mistake is to use the purchase price; the tax uses the assessed (fiscal) value.
What are the rates of the Solidarity (Luxury) Tax?
The tax is progressive. Rates run from 0.25% on the lowest bracket to 0.55% on the highest, applied to the property’s total value. The brackets are updated each year together with the threshold.
When is the Solidarity (Luxury) Tax due?
The tax is paid every year by January 15. The property value is declared to Hacienda every three years, and payment is made each year in between.
What are the penalties for non-payment?
Law 8683 allows Hacienda to charge fines and interest on late or missing payments. Unpaid luxury tax stays with the property, so a buyer’s due diligence should confirm that past filings and payments are up to date.
Do I need a lawyer to help me with the Solidarity (Luxury) Tax?
Many owners use a legal or accounting team for the appraisal, registration with Hacienda, the filing and the yearly payment, and to review any back years and penalties.
This information is provided by our business partner: QUATRO LEGAL, a top legal firm having offices in Guanacaste at the Beach and in Escazu in San Jose.
Frequently Asked Questions
What is Costa Rica’s luxury home tax?
The Solidarity Tax (Law 8683) applies when a home’s construction value passes a threshold set each year. Qualifying homes pay 0.25% to 0.55% of total value, land included, on a sliding scale, declared and paid each January. Many Guanacaste luxury homes qualify.
