Costa Rica Luxury Home Tax that house owners cannot calculate

27 October 2009

Costa Rica Luxury Home Tax that house owners cannot calculate

Posted by richardb under: Economy & Politics .

Luxury Hoem Tax Costa Rica In 2008 a ‘Luxury Home Tax’ was passed that allowed the government to collect taxes on houses in Costa Rica with value of over 100 million colones (around $185,000).

However the tax must be paid by 15th January 2010 but most home owners who are liable for this tax cannot calculate how their tax is. Constructura Costa Rica stated that around 95% of people will not be able to calculate their own tax and will need a specialist. Deloittes stated that it is a very arduous and boring task.

The Finance Ministry in Costa Rica expects to raise an extra 12 billion colones

On reading how to calculate the value of your house and also the applicable tax I think any intelligent person will just curl up in a ball and search for a specialist.

Currently if the house value statement is wrong, the fine is five times the value of the amount to pay. If the taxpayer does not declare and file and is later audited, the fine is 10 times the value.

The value statement of your property is valid for three years, but there are adjustable based on any valuations made by banks when a mortgage is processed, which can alter the value and require the homeowner to update their value statement.

Enquire about a custom designed luxury holiday to Costa Rica from 899GBP per person.