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Solidarity Tax on Luxury Homes 2026

Feb 9, 2026

Who must pay it, applicable rates, and non-compliance risks in Costa Rica


This tax was created to finance social housing programs and applies to residential, vacation, or recreational properties whose construction value and improvements exceed an annually defined minimum threshold.


The tax does not apply to the land value, but rather to the value of the building and its improvements, as determined in accordance with official valuation tables and assessments issued by the Tax Administration.


Threshold and taxpayers subject to the tax in 2026

For the 2026 tax period, the tax applies to properties whose construction value exceeds approximately USD 286,000, according to the update published through Executive Decree No. 45358-H.

 

The following taxpayers are required to file and pay the tax:

  • a)      Individuals who own high-value residential properties

  • b)     Legal entities that own residential properties

  • c)      Properties acquired during 2025, if their value exceeds the applicable threshold

  • d)     Co-owners, in proportion to their ownership interest

 

In practice, many taxpayers are unaware that a recently acquired property may become subject to the tax as early as the following year, even if it had never been declared before.

 

Progressive tax rates

The tax is calculated using a progressive rate structure, based on the construction value of the property.


Properties with a construction value of up to approximately USD 718,000 are exempt. Higher-value properties are subject to progressive rates ranging from 0.25% to 0.55%, depending on the applicable value bracket. As the value of the property increases, the applicable rate rises accordingly, preserving the principle of tax progressivity.


Filing deadline and payment method

For the 2026 period, the deadline to file and pay the tax expired on January 15, 2026, without penalties.


The tax return must be filed using Form D-174 through the TRIBU-CR platform of the Ministry of Finance. Payments may be made online via IBAN through the Tax Authority’s virtual office or at authorized financial institutions, such as Banco de Costa Rica and BAC.


Consequences of non-compliance

Failure to pay the tax on time may result in several consequences. Automatic penalties and interest apply under the Tax Procedures Code in cases of late payment. In addition, the Tax Administration may initiate asset review and net worth audit procedures, particularly when there are discrepancies between the declared construction value and the property’s actual value.


Repeated non-compliance can lead to the accumulation of tax contingencies, negatively affecting the taxpayer’s overall tax position.


In practice, the most frequent issues identified include failure to update construction values after renovations, the incorrect assumption that the tax applies only to primary residences, the omission of recently acquired properties, and the understatement of construction value relative to market reality. These situations significantly increase the likelihood of adjustments, penalties, and audits.


The Solidarity Tax on Luxury Homes continues to be a relevant obligation for owners of high-value residential properties in Costa Rica. In 2026, updated thresholds and valuation criteria reinforce the need to timely assess whether a property falls within the scope of the tax.


The recommended approach is to review the updated construction value, file the return on time, and retain proper supporting documentation, in order to avoid future tax contingencies.

 

Official references

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