Non-payment of property tax in Costa Rica could result in the loss of your real estate. The debts for this tax constitute Legal Mortgage, which means that the Municipality is authorized to appear before the Judicial Collection Court to execute the debt having as a guarantee of payment the real estate.

Property tax is a tax create in favor of the Municipalities. Those who are obliged to pay are all owners or holders of the properties.

It is rated using as a basis the declared value of the property and multiplying it by 0.25%. The result will be the annual tax that the specific property must pay. Payments can be made annually or quarterly, starting on the first of January of the corresponding year. It is important to consider that with the approval by the Government of the loan from the International Monetary Fund, for the payment of the loan it is contemplated to increase the tax on properties by 0.50%. That is, with this increase the tax could go from 0.25% to 0.75%.

Not everyone is obligated to pay the taxes, there is an exemption, total or partial, which operates in favor of natural persons who own a single house with a maximum value of 45 basic wages. As of today, the base salary corresponds the sum of ¢ 462,200.00. Properties with a higher value will pay on the excess. If you are a beneficiary of this exemption, you must approach the corresponding Municipality for the purpose of processing the benefit.

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