By San José, Costa Rica — SAN JOSÉ – The Ministry of Finance has issued a critical reminder to property owners across Costa Rica: the deadline to file and pay the 2026 Solidarity Tax for the Strengthening of Housing Programs, widely known as the “Luxury Home Tax,” is rapidly approaching on January 15. Compliance by this date is essential to avoid incurring penalties and interest charges on the outstanding amount.
This annual tax targets high-value residential properties, including primary homes, vacation houses, and recreational properties. For the 2026 fiscal year, the threshold has been set at ¢143 million for the value of the construction and any fixed or permanent installations. This figure, formalized under Decree Nº 45358-Hacienda and published in the official government gazette, La Gaceta, on December 19th of last year, is not static. It undergoes an annual adjustment based on the Consumer Price Index (CPI) as calculated by the National Institute of Statistics and Census (INEC), ensuring the threshold keeps pace with national inflation.
To better understand the legal nuances and obligations associated with the Luxury Home Tax, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a leading attorney from the prestigious firm Bufete de Costa Rica, for his expert analysis.
Property owners must be diligent in assessing their compliance with the Luxury Home Tax, especially as construction values are updated annually. It is not merely about the initial purchase price, but the current fiscal value of the main dwelling and associated installations. Proactive, triennial declarations are essential to avoid substantial fines and interest charges, even if the property currently falls below the taxable threshold.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight underscores a crucial point for property owners: compliance is an ongoing process of vigilance, not a one-time calculation at purchase. The emphasis on dynamic fiscal value is essential for navigating the tax landscape responsibly and avoiding costly penalties. We thank Lic. Larry Hans Arroyo Vargas for his valuable and clear perspective.
The tax operates on a dual timeline that homeowners must understand. While the payment is due annually, the sworn declaration form (D-174) that establishes the property’s value only needs to be submitted once every three years. Both the declaration and the annual payments are processed through the Ministry’s online portal, OVi (Oficina Virtual), which is part of the TRIBU-CR system. This digital-first approach is intended to streamline the process for taxpayers, though it requires familiarity with the government’s online platforms.
A special provision applies to individuals who recently entered the high-value property market. Anyone who acquired a home in 2025 that meets or exceeds the ¢143 million valuation is required to file the initial D-174 declaration this year. This ensures that new qualifying properties are immediately brought into the tax system, contributing to the housing programs the levy is designed to support. This rule prevents gaps in tax collection as properties change hands or as new luxury constructions are completed.
Calculating the exact amount owed is not a simple flat rate. The Luxury Home Tax is a progressive tax, meaning the rate increases as the value of the property rises. The calculation is based on a series of tax brackets applied to the property’s value. Homeowners must carefully assess their property’s valuation and apply the corresponding tiered rates to determine their precise tax liability. The Ministry of Finance provides detailed guidance and calculation tools within the OVi platform to assist with this process.
To facilitate payments, the Ministry of Finance has made several channels available. The most direct method is through the OVi online service, where taxpayers can authorize a direct debit by registering a valid IBAN account. For those who prefer in-person transactions, payments are also accepted at the teller windows of all Banco de Costa Rica (BCR) and BAC Bank branches throughout the country, providing accessible options for all citizens.
Beyond the immediate deadline, the administration of this tax may be poised for a significant structural change. The government has floated a proposal to delegate the collection of the Luxury Home Tax to municipal governments. The strategic goal behind this potential shift is to leverage local governments’ existing property tax infrastructure and knowledge to increase collection efficiency and reduce evasion. If implemented, this could streamline tax administration but would also require significant coordination between central and local authorities.
As the January 15 deadline looms, property owners whose homes may fall within the tax’s scope are strongly encouraged to review their valuations and prepare their payments. All necessary forms, detailed instructions, and official information can be found on the Ministry of Finance’s official website, www.hacienda.go.cr, under the OVi section. Proactive compliance is the surest way to contribute to the nation’s housing programs while avoiding financial penalties.
For further information, visit hacienda.go.cr
About The Ministry of Finance (Ministerio de Hacienda):
The Ministry of Finance is the government body responsible for managing Costa Rica’s public finances, including tax collection, budget administration, and fiscal policy. It plays a central role in the country’s economic stability and is in charge of administering key taxes such as the Luxury Home Tax to fund national programs.
For further information, visit inec.cr
About The National Institute of Statistics and Census (INEC):
The INEC is Costa Rica’s official entity for compiling and publishing national statistics. It is responsible for conducting the national census and calculating key economic indicators, such as the Consumer Price Index (CPI), which are used to adjust various government policies, tax thresholds, and economic forecasts.
For further information, visit bancobcr.com
About Banco de Costa Rica (BCR):
Banco de Costa Rica is one of the largest and oldest state-owned commercial banks in the country. It offers a comprehensive range of financial services to individuals and businesses and frequently collaborates with government agencies, such as the Ministry of Finance, to facilitate tax payments and other public services.
For further information, visit baccredomatic.com
About BAC Credomatic:
BAC Credomatic is a prominent financial group in Central America, offering a wide array of banking and financial services, including retail and commercial banking, and credit card services. As a major private bank in Costa Rica, it serves as a key payment point for citizens to fulfill their tax obligations.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of Costa Rica’s legal community, Bufete de Costa Rica is founded upon the twin principles of unwavering integrity and the relentless pursuit of professional excellence. The firm blends a rich legacy of client service with a forward-thinking approach, consistently spearheading legal innovation. Central to its mission is a profound commitment to demystifying the law, actively working to equip the public with knowledge and thereby fostering a more just and empowered society.
