In addition to the payment of the real estate tax, the owners who raise one or more assets are obliged to declare their value before the respective Municipality in Costa Rica.

The Declaration of Real Estate in Costa Rica refers to the determination of the value of the property on a voluntary basis, where the characteristics of the land and the constructions that are within the property are considered. This value in turn will serve as a tax base for the calculation of the property Tax, once accepted by the Municipality Administration.

This declaration must be made by the owner of the property at least once every five years, using the Property Tax Declaration form provided by the corresponding municipality in Costa Rica.

What information does the Declaration Form contain?
The form contains at least the following information, as established in article 26 of the Regulations to the Property Tax Law, which quotes:

1. Identification of the owner or holder (qualities, legal or identity card number, tax address, telephone number, fax, post office box).
2. Place for notifications.
3. Description of the property (number of lands, nature, measured in square meters, exact location, catastral plan).
4. Description of the existing constructions.
5. Land value and construction.

How often should I submit the Declaration?
Every owner is required to file a declaration of his property at least every five years. In case of omission, the Municipality may, informally, update the declared value. Municipalities may also correct the values voluntarily declared.

What if I don’t declare ownership?
According to a standard of the Attorney General’s Office of the Republic, “the basis for calculating the quantum of the fine is the amount of tax not paid by the taxpayer, which is determined on the basis of the tax that he was paying and the new tax that is determined by the ex officio valuation practiced by the municipal entity, before the taxpayer does not file the return. ” And due process must be respected for the purposes of its imposition.

In ERP Lawyers & Associates we have extensive experience in matters of taxes and municipal returns, so if you have doubts you can send them to us by email info@erplawyers.com, where we will gladly attend them.