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The Solidarity Tax for the Strengthening of Housing Programs (The Luxury Home Tax) falls on the value of real estate for residential use, which is used on a regular, occasional, or recreational basis, and includes both fixed and permanent installations. This tax was created with the objective of financing decent housing for the population in extreme poverty, and it is not deductible for income tax purposes.
The payment of the 2021 period has been enabled since last January 1st and was determined by Executive Decree No. 42764-H, published in Scope No. 334 of La Gaceta, where the Ministry of Finance established the new sections for this tax. This decree also established the limit on the value from which the obligation to pay this tax should be understood.
Similarly, and in relation to the exempt amount, there is a slight variation compared to that established for the 2020 period, which was c.133,000,000.00 (one hundred and thirty-three million colones), while the exempt amount for the 2021 period was set at c.133,478,800.00 (one hundred thirty-three million four hundred seventy-eight thousand eight hundred colones). However, to facilitate the proper management and administration of taxes, it has been considered convenient to round the resulting figures to the nearest million.
| STAGE | RATE |
| From c133,000,000.00 and up to c.335,000,000.00 | 0.25% |
| Over the excess of c.335,000,000.00 and up to c.672,000,000.00 | 0.30% |
| Over the excess of c.672,000,000.00 and up to c.1,008,000,000.00 | 0.35% |
| Over the excess of c.1,008,000,000.00 and up to c.1,345,000,000.00 | 0.40% |
| Over the excess of c.1,345,000,000.00 up to c.1,679,000,000.00 | 0.45% |
| Over the excess of c.1,679,000,000.00 up to c.2,017,000,000.00 | 0.50% |
| Over the excess of c.2,017,000,000.00 | 0.55% |
It is also established that the owners of homes with a value greater than one hundred and thirty-three million colones (c.133,000,000.00) will be the ones obliged to pay this solidarity tax. Consequently, we find that the same minimum value that prevailed during 2020 of the properties taxed with this tax remains. It should be reminded that these determined amounts are for the valuations that must be made to the buildings that are within a property; in other words, the value of the lot should not be taken into consideration.
If you require advice and more information about of the Luxury Home Tax for 2021 or any other related one, ERP Lawyers makes their legal service available to you. Do not hesitate to contact us!
