If you own a property in Costa Rica valued at over 168 million colones, it is important that you familiarize yourself with the Solidarity Tax for the Strengthening of Housing Programs. This tax, also known as the Luxury Homes Tax, is calculated through a specialized appraisal. In this article, we explain what this tax is, how it is calculated, which properties are subject to it, and what law regulates it.
What is the Solidarity Tax in Costa Rica?
The Solidarity Tax is a levy applied to residential properties whose value exceeds a specific amount established by the Ministry of Finance. The purpose of this tax is to collect funds for housing programs aimed at low-income families.
This tax applies to both:
- Houses for personal use
- Houses for recreational use
The minimum value from which a property is subject to the tax for the 2025 period is ₡168,583,000.
What Law Regulates the Solidarity Tax?
The Solidarity Tax is regulated by Law No. 8683: “Law on the Solidarity Tax for the Strengthening of Housing Programs.” This law was published in Supplement No. 15 to La Gaceta No. 6 on January 9, 2009.
In addition, the regulation establishing the procedures and technical details is Executive Decree No. 35515-H.
Which Properties Are Subject to the Solidarity Tax?
The Solidarity Tax applies exclusively to residential properties considered luxury properties, meaning those whose total value, including land and constructions, exceeds ₡168,583,000 (an amount updated by the Ministry of Finance).
Properties That Must Pay the Tax:
- Luxury homes used as primary residences.
- Recreational properties, such as farms, beach houses, or vacation properties.
These properties are subject to the tax because their value exceeds the limit established by law.
Properties Exempt from the Tax:
- Properties intended for commercial activities, such as offices, retail spaces, or industrial facilities.
- Properties whose total value does not exceed ₡168,583,000.
If you own a commercial property or a home that does not reach the minimum value established, you are not obligated to pay this tax.
How Is the Solidarity Tax Appraisal Calculated?
The appraisal for the Solidarity Tax is a technical evaluation that determines the total value of a property, considering both the land and the constructions. This process must be carried out by a certified engineer or architect who ensures that the values used comply with current regulations.
What Factors Are Considered in the Appraisal?
- Land Value: Calculated using the official prices established by the Ministry of Finance, which vary depending on the location and characteristics of the land.
- Value of the Constructions: Based on unit value tables that classify constructions by type (luxurious, standard, etc.) and their finishes.
- Depreciation: The age and current condition of the buildings are considered. Older properties or those in poor condition will have a lower value due to depreciation.
In accordance with Article 4 of Law 8683 Law on the Solidarity Tax, the taxable base for this tax is the fiscal value of the residential property. Articles 5 and 6 of the aforementioned law, along with Article 21 of Executive Decree No. 35515-H, state that the taxable base is subject to a progressive scale of rates that must be updated annually in December by the Executive Branch, along with the fiscal value subject to this tax.
Furthermore, Article 7 of the same law specifies that the declaration must be submitted every three years, forming triennial periods. The current triennium comprises the years 2022, 2023, and 2024. For the year 2025, the scale was updated through Decree No. 44834-H, published in Supplement No. 204 to La Gaceta No. 237 on December 17, 2024. Properties with a fiscal value exceeding ₡145,000,000.00 are subject to this tax. Below is the progressive rate scale for 2025, which must be applied to the total amount without excluding the exempt amount, and progressively:
Progressive Tax Scale for the Solidarity Tax (2025):
| Bracket | Difference | Rate | Tax to Pay |
|---|---|---|---|
| Up to ₡364,000,000.00 | ₡364,000,000.00 | 0.25% | ₡910,000.00 |
| Excess of ₡364,000,000.00 up to ₡730,000,000.00 | ₡366,000,000.00 | 0.30% | ₡1,098,000.00 |
| Excess of ₡730,000,000.00 up to ₡1,095,000,000.00 | ₡365,000,000.00 | 0.35% | ₡1,277,500.00 |
| Excess of ₡1,095,000,000.00 up to ₡1,462,000,000.00 | ₡367,000,000.00 | 0.40% | ₡1,468,000.00 |
| Excess of ₡1,462,000,000.00 up to ₡1,824,000,000.00 | ₡362,000,000.00 | 0.45% | ₡1,629,000.00 |
| Excess of ₡1,824,000,000.00 up to ₡2,191,000,000.00 | ₡367,000,000.00 | 0.50% | ₡1,835,000.00 |
| Excess of ₡2,191,000,000.00 | — | 0.55% | — |
How to Declare the Solidarity Tax?
The tax declaration is filed using Form D-179, which must be submitted to the Ministry of Finance. However, this process can be complicated for many property owners. That’s why at CICSA Ingeniería Civil, we offer a comprehensive service that includes property appraisal and handling all necessary documentation to declare the Solidarity Tax, ensuring compliance with current regulations efficiently and on time.
Steps to Declare the Tax:
- Conduct a technical appraisal of the property.
- At CICSA, our experts carry out this appraisal in accordance with the official parameters set by the Ministry of Finance.
- Complete Form D-179.
- We help you accurately complete and submit the form.
- File the declaration every three years.
- We handle this declaration with the General Directorate of Taxation.
- Pay the tax annually before January 15.
- We also provide guidance on annual payments.
Who Can Perform the Solidarity Tax Appraisal?
The appraisal must be conducted by an accredited professional:
- Civil Engineer
- Architect
- Expert authorized by the CFIA (Federated College of Engineers and Architects)
At CICSA Ingeniería Civil, we specialize in property appraisals in Costa Rica, including appraisals for the Solidarity Tax. Our team of experts is ready to help you comply with current regulations and ensure that your property is properly valued.