New Tax on Luxury Homes – 2

A new tax on properties which recently came into effect in Costa Rica. According to Article 6 of Law 8683, properties with constructions worth less than 100,000 million colones are exempt ($169,923 at current exchange rate of 588.50 colones to the dollar).

The law went into effect on October 1, 2009. Homeowners have three months from this date, to make a sworn statement before the Tax Authority (Tributacion) declaring the value of their property, at which time they shall also have to pay the proportional tax until December 31.

The Ministerio de Hacienda(Finance Ministry) has said that home owners will have until January 15, 2010 to pay their taxes this first time. There are fines for non compliance.

The declaration must be made every three years, in the first fifteeen days of Janauary of the coresponding fiscal year.This Tax is in addition to the property tax already established at 25% or $250 for every $100.000 of declared value, which is paid to the Minicipalityt every year.But the new tax to be paid to the Tax Authorothy, Direccion General de Tributacion Directa, and all homeowners need to make a sworn statement within the next three months, as to the value of their property, using the parameters established by the same Tax Authority (see article 10).

Condominium owners need to add thepercentile value of the common areas to the value of their individual units (article 4).This new tax is not tax deductible, for Income Tax pursposes. The law will stay in effect for ten years, and its purpose is to give the govermentfunding for social housing projects for poor people.

To the taxable base, it shall be applied, in a progressive manner, the following rate schedule:

Waterfall, House with Guest House, L894
This colonial rustic style house is located just 5 minutes from the beach and close to Jacó in Hermosa Beach. It has a lap pool, nice terraces and it is surrounding by nature and all kind of exotic animals and birds. It has a Guest house with two bed rooms, kitchenette and one bathroom.

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Listing Price: $498,000

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Recent Progress in the San Jose Caldera Highway