Finance ministry issues a reminder on luxury home tax deadline

The Ministerio de Hacienda noted Wednesday that only owners of new or recently purchased luxury homes have to declare value this year. The rest just have to pay the luxury home tax.

Homeowners of qualifying dwellings only need to declare the value every three years, so this is an off year for most.

The ministry also noted that today is the deadline for making the tax payment. Many financial institutions will accept the money. That includes Banco de Costa Rica and Banco  Nacional. In some cases, payment can be made via Web pages.

This year homes subject to the tax are those worth 128 million colons or more. That’s about $235,000. The value includes the structure and the immediate real estate. Condos are subject to the tax, too, if they meet the value threshold. Owners have to include a proportional share of the commons area.

The tax is overlooked by many.  The ministry said that it has been working with municipalities to identify homes eligible for the tax. So far 850 tax avoiders have been identified, it said.

The tax is supposed to provide homes for those living in slum conditions. However, there has not been any announcement yet of homes that have been built with the tax income.

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