At the beginning of each year, for thousands of property owners in Costa Rica, an obligation comes into effect that should not be overlooked: the real estate tax. This tax applies for the simple fact of owning a property, whether it is used or not, and is calculated at an annual rate of 0.25 % on the value of the property registered as of January 1st.
Payment is made to the municipality where the property is located and can be made annually, semi-annually or quarterly, depending on each canton. In many cases there are discounts for early payment during January, which allows compliance without surcharges.
It is important to remember that a notice is not required for the obligation to exist. If it is not paid on time, interest is generated and the debt is tied to the property. In addition, the law requires updating the value of the property at least every five years, since the tax is calculated on that amount.
The regulations also provide for specific exemptions and a benefit for individuals in the case of a single asset, provided that it does not exceed the limit established by law.
Not only registered owners are obliged to pay, but also usufructuaries, concessionaires and possessors, and in co-ownership each owner is proportionally liable.
Getting organized in January can avoid unnecessary costs and start the year with fiscal peace of mind.
This is a news service prepared by ICS. For more information about the story, write to info@ics.cr or call 2519-9992 ICS, tax specialists.