By San José, Costa Rica — SAN JOSÉ – Time is running out for owners of high-value residential properties in Costa Rica, as the deadline to pay the annual Solidarity Tax for the Security of Citizens, commonly known as the luxury home tax, is rapidly approaching on January 15, 2026. This mandatory tax applies to a specific segment of homeowners and is a critical component of the nation’s fiscal framework, with non-compliance resulting in significant financial penalties.
The obligation falls upon all owners of homes used for residential, occasional, or recreational purposes whose property value exceeds a specific threshold. According to the recently published Executive Decree 45358-H in the official government gazette, La Gaceta, on December 19, 2025, any property where the value of the construction and its fixed and permanent installations surpasses ¢143 million is subject to this tax.
To better understand the legal and financial implications of the Luxury Home Tax for property owners, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an expert attorney from the prestigious firm Bufete de Costa Rica.
The Solidarity Tax for the Strengthening of Housing Programs, commonly known as the Luxury Home Tax, is not merely a financial obligation but a legal one with significant consequences. Property owners must ensure their valuations are accurate and updated every three years to avoid substantial fines and interest charges. Proactive compliance and proper legal counsel are essential to navigate the complexities of this tax and safeguard one’s assets.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective, which underscores a critical point for property owners: viewing this tax not as a simple annual bill, but as a recurring legal responsibility that requires diligent management and professional oversight to avoid significant financial penalties.
This threshold, equivalent to approximately $275,000 USD depending on current exchange rates, ensures that the tax is targeted specifically at the upper tier of the real estate market. The tax calculation focuses on the value of the structures and permanent fixtures, not the land itself, making it a direct levy on high-end construction. The revenue generated is earmarked for programs aimed at enhancing citizen security, as its official name implies.
An important distinction for taxpayers to understand is the declaration and payment cycle. While the payment must be made annually by the January 15 deadline, the corresponding property value declaration is only required to be filed with the tax authorities once every three years. This system is designed to streamline the process for long-term owners while ensuring that property valuations remain relatively current over time.
The Ministry of Finance has also clarified the procedure for new property owners. Individuals or corporations that acquired a qualifying luxury property at any point during the 2025 calendar year are required to complete and submit the official form D-174, “Declaración del Impuesto Solidario para la Seguridad Ciudadana,” and remit the corresponding payment. This ensures that new entrants into the high-value property market are immediately brought into compliance with the national tax law.
To facilitate compliance, the government offers multiple payment channels. Taxpayers can conveniently pay online through the Ministry of Finance’s Virtual Tax Office, known as OVi, which allows for a direct and efficient digital transaction. For those who prefer or require in-person services, payments are also being accepted at the branch offices of two of the country’s major financial institutions, the state-owned Banco de Costa Rica (BCR) and the private bank BAC Credomatic.
Authorities are urging property owners to act promptly and verify their obligations to avoid the consequences of delinquency. The tax code is clear that failure to either file the required declaration on time or to remit the annual payment before the deadline will trigger sanctions. These penalties typically include substantial fines and the accrual of interest on the outstanding tax amount, significantly increasing the financial burden on the property owner.
As the deadline looms, real estate consultants and tax advisors are recommending that all owners of properties potentially near the ¢143 million threshold review their valuations and ensure all tax responsibilities are met. Proactive compliance is the most effective strategy to avoid unnecessary complications and support the national solidarity programs funded by this important levy.
For further information, visit hacienda.go.cr
About Ministry of Finance (Ministerio de Hacienda):
The Ministry of Finance is the government body responsible for managing Costa Rica’s public finances, fiscal policy, and tax collection. It plays a central role in the country’s economic planning and stability, overseeing the national budget and ensuring compliance with tax laws such as the Solidarity Tax.
For further information, visit bancobcr.com
About Banco de Costa Rica:
Banco de Costa Rica (BCR) is a prominent state-owned commercial bank and one of the largest financial institutions in the nation. With a history stretching back to the 19th century, it provides a comprehensive suite of banking services to individuals, businesses, and government entities, and often collaborates with the state on tax collection initiatives.
For further information, visit baccredomatic.com
About BAC:
BAC Credomatic is a leading private financial group with a significant presence throughout Central America. As part of Colombia’s Grupo Aval, it offers a wide array of financial products, including personal and corporate banking, credit cards, and asset management. Its extensive branch network in Costa Rica makes it a key partner for facilitating public payments.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica is defined by its foundational principles of unwavering integrity and the relentless pursuit of excellence. The firm draws upon a rich history of serving a diverse clientele to spearhead legal innovation and champion community involvement. Central to its ethos is a profound dedication to demystifying the law, ensuring that legal insights are shared widely to cultivate a society that is both knowledgeable and empowered.
