Do you own property? A house, a lot, a commercial space or maybe an inherited piece of land that you hardly ever visit. So January not only brings new resolutions and bills to settle, it also brings a payment that should not be forgotten.
With the beginning of each year, the real estate tax comes into force. It is not a new or exceptional tax. It applies for the simple fact of being an owner, whether the property is used or not, whether it is rented or remains unoccupied. It starts on January 1st.
This tax is paid to the municipality of the canton where the property is located. It is calculated by applying an annual rate of 0.25 % on the value of the property registered on January 1st of each year, this is the taxable base used to determine how much is payable.
Although the tax is annual, it is not always paid in a single installment. Each municipality defines whether it is paid annually, semi-annually or quarterly.
Pay tax without surcharges
In addition, incentives for early payment are common, especially in January. Therefore, this month is usually a good time to review the tax and decide how to pay it without surcharges.
We must be clear, it is not necessary to receive a collection notice for the obligation to exist. Even if a notice does not arrive, the tax is in force. If it is not paid on time, interest and surcharges are generated, and the debt remains associated with the property. That is to say, it does not disappear with the passage of time or the change of the year.
Another point that many people leave out is the value of the property. The law establishes that owners must declare the value of their property at least every five years before the municipality.
This value is not a simple administrative data: it is the one used to calculate the tax. If it is outdated, you may end up overpaying without knowing it, or underpaying and facing subsequent adjustments.
At this point it is important to remember that not all properties are necessarily subject to the tax.
The Law contemplates a list of non-taxable properties, for example: real estate owned by the State and municipalities and other institutions exempted by special law, real estate declared a forest reserve or national park.
Also public educational and health institutions, diplomatic offices under reciprocity conditions, among others, which are mentioned in Article 4 of Law 7509.
Relevant benefit
In addition, there is a relevant benefit for individuals when it is the sole property of the taxpayer, if the property has a maximum value equivalent to forty-five base salaries, that is to say ¢20,799,000.00 (twenty million seven hundred ninety-nine thousand colones) for the fiscal period 2026, it would not be subject to tax. In case it exceeds that amount, the tax is paid only on the excess.
Additionally, there is a tax credit. The law empowers the municipalities to grant a tax credit, total or partial, equivalent to the annual amount of the tax.
This in favor of institutions or organizations, public or private and non-profit, that fulfill social objectives in the canton. This point often goes unnoticed, but it is key to keep it in mind before assuming that there is no alternative.
Who is obligated to pay?
Not only those who have a registered title. So are those who own unregistered properties, usufructuaries, concessionaires and, in certain cases, occupants or possessors. And when a property has several owners, each one responds proportionally for his part.
How do I pay? Payment can be made directly at the municipality or through the authorized collection agencies. The procedure is usually simple; what makes the difference is not to leave it for later.
This tax is all about order and foresight. January always brings reminders, and this is one of the most constant for anyone who owns property. Listening to it on time allows you to start the year with one less worry. Ignoring it, on the other hand, almost always ends up costing more.
José Rúnel López for The Observer