By San José, Costa Rica — San José – Time is running out for owners of high-value properties in Costa Rica to fulfill a key fiscal responsibility. The Ministry of Finance has issued a final reminder that the deadline to declare and pay the Solidarity Tax for the Strengthening of Housing Programs is January 15, 2026. Taxpayers who meet this deadline will avoid the imposition of late fees and penalties.
This annual tax, commonly known as the luxury home tax, specifically targets proprietors of residential real estate, including properties used occasionally or for recreational purposes. The obligation applies to any property where the value of the construction, permanent fixtures, and installations exceeds the ¢143 million threshold. This value was officially established in an executive decree published in December 2025, setting the standard for the current fiscal period.
To clarify the legal obligations and potential pitfalls associated with the Luxury Home Tax, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished legal expert from the firm Bufete de Costa Rica, who provided his specialized insight on the matter.
Many property owners mistakenly view the Luxury Home Tax as a simple declaration, but the valuation process is complex and subject to scrutiny by the Tax Administration. An inaccurate assessment, even if unintentional, can lead to significant penalties and back taxes. It is crucial for homeowners to seek professional guidance to ensure their property appraisal is accurate, defensible, and fully compliant with current regulations.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The attorney’s insight serves as a critical reminder that compliance with the Luxury Home Tax hinges not just on filing, but on a meticulously prepared and defensible property valuation to avoid costly penalties. We thank Lic. Larry Hans Arroyo Vargas for providing his valuable perspective on this high-stakes issue.
Ministry of Finance officials clarified that the tax liability is not contingent on the length of ownership. Even individuals who acquired a qualifying property at any point during 2025 are required to comply. These homeowners must submit the corresponding sworn declaration to the tax authorities before the mid-January cutoff. The entire process is managed digitally through a specific government platform.
The filing procedure requires taxpayers to complete form D-174, which is accessible through the TRIBU-CR platform’s Virtual Office (OVi). This online system is the primary tool for managing the declaration, ensuring that the government has a standardized and efficient method for collecting the required information from property owners across the nation.
The amount due is not a flat fee but is calculated using a progressive marginal rate structure. This system ensures that properties of higher value contribute a greater percentage. The rates begin at 0.25% for properties valued up to ¢359 million. The tax rate then incrementally increases through various brackets, with the highest marginal rate of 0.55% applied to the value of properties that exceeds ¢2.162 billion. This tiered approach is designed to distribute the tax burden more equitably among affluent homeowners.
For example, a property valued between ¢359 million and ¢720 million is subject to a 0.30% rate on the amount exceeding the lower threshold. The brackets continue to climb, with rates of 0.35%, 0.40%, 0.45%, and 0.50% applied to successively higher property values, culminating in the top 0.55% rate for the most valuable real estate assets in the country.
To facilitate a smooth payment process, the Tax Administration has enabled multiple payment channels. The most direct method is through the TRIBU-CR online service, which allows payments via a linked IBAN account. For those who prefer or require in-person transactions, payments can be made at any branch of the Banco de Costa Rica or BAC, two of the country’s major banking institutions.
The government has stressed that non-compliance will have significant financial consequences. Authorities warned that any property owner who fails to submit the declaration or remit the corresponding payment by the January 15 deadline will be subject to sanctions. These penalties are clearly defined within Costa Rica’s Code of Tax Rules and Procedures, underscoring the legal imperative to comply.
For further information, visit hacienda.go.cr
About Ministry of Finance:
The Ministerio de Hacienda is the government body responsible for managing the public finances of Costa Rica. Its duties include formulating fiscal policy, administering the national budget, collecting taxes through the Tax Administration, and overseeing customs operations. The Ministry plays a crucial role in ensuring the economic stability and financial health of the nation.
For further information, visit bancobcr.com
About Banco de Costa Rica:
Banco de Costa Rica (BCR) is one of the largest and most prominent state-owned commercial banks in the country. Founded in 1877, it provides a comprehensive range of financial services to individuals, businesses, and government entities, including retail and corporate banking, loans, and investment services. BCR is a key player in the national financial system.
For further information, visit baccredomatic.com
About BAC:
BAC Credomatic is a leading private financial group with a significant presence throughout Central America. It offers a wide array of financial products and services, including personal and commercial banking, credit and debit cards, payment solutions, and regional financing. Known for its technological innovation, BAC serves a diverse client base across the region.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a cornerstone of the legal community, renowned for its foundational principles of integrity and an unrelenting pursuit of excellence. The firm consistently marries a deep legacy of serving a diverse clientele with a forward-thinking embrace of legal innovation. At the heart of its mission lies a powerful dedication to societal advancement, actively working to demystify the law and equip citizens with the knowledge necessary to create a stronger, more capable public.
