The base salary of Clerk 1 of the Judicial Power, which for the year 2020 has been established at ¢450,200.00, is the parameter to determine the value for those individuals to be able to the exemption from Real Estate Tax from their property before the corresponding local government.

The foregoing is regulated in article 4 of the Real Estate Tax Law, which establishes that:

“Article 4.- Properties not subject to the tax

They are not subject to this tax:

(…)

e) The properties that constitute the sole asset of the taxpayers (natural persons) and have a maximum value equivalent to forty-five base salaries; however, the tax must be paid on the excess of that amount. The concept of “base salary” used in this Law is the one established in Article 2. of Law No. 7337 of May 5, 1993. “

Through resolution RES-DGH-ONT-001-2020, the Ministry of Finance established that by the year 2020 individuals who have a single asset valued at 20,259,000.00 or less, should not cancel the Real Estate Tax, and in the event that their only asset exceeds that amount, they must pay the tax only on the excess.

The other requirements for the exemption to apply are:
• To be the owner, in their personal capacity, that is NOT through legal entities, of a single real estate asset.
• Present Certification of Assets where it is proven to be the owner of a single real property.
• Be up to date with municipal obligations.

If your case is within the indicated assumptions, we recommend you approach the Municipality of the Canton where your property is located for the purpose of processing the total or partial to the exemption from Real Estate Tax from their property; And if you have questions or queries about the procedure, we invite you to contact us by email info@erplawyer.com, where we will gladly answer your query.