Costa Rica property taxes for foreign owners in 2026
Last updated August 2026. Rates and colón thresholds are adjusted annually — confirm the current figures for your property before you rely on them.
As a foreign owner you pay the same taxes as a Costa Rican: an annual property tax of 0.25% of registered value to your municipality; the luxury home tax (impuesto solidario) — roughly 0.25%–0.55% — if your construction value clears the annual threshold, due mid-January; and, if you hold the property in an S.A. or S.R.L., an annual corporation tax. No surcharge exists for foreigners.
How much is the annual property tax in Costa Rica?
The annual property tax — the Impuesto sobre Bienes Inmuebles — is 0.25% of the registered value of your property, charged every year. It is paid to the municipality where the property is located, not to the national government, so the billing and payment mechanics differ slightly from town to town. On a property registered at US$400,000 that is roughly US$1,000 a year. Foreign owners pay exactly the same rate as nationals; there is no foreigner surcharge.
The number that matters is the registered value, which you declare to the municipality (a declaración every few years) and which the municipality can revalue. Owners who declared a low value years ago and then built or improved the property can find the base adjusted upward. Most municipalities let you pay quarterly and give a small discount for settling the whole year early — confirm the current rule where your property sits.
What is the luxury home tax (impuesto solidario), and do I owe it?
The luxury home tax — impuesto solidario para la vivienda — is the one most foreign owners misunderstand. Its trigger is the value of the construction — the house or building itself, not the land — exceeding an annual threshold set by the Ministry of Finance (CRC 143,000,000 for 2026, per Executive Decree 45358-H, which must be verified). A modest house on very expensive land can fall below the line; a high-spec villa on cheap land can cross it.
Here is the twist that surprises people: once the construction value crosses the threshold, the tax is then calculated on the total value — land plus construction — on a progressive scale of roughly 0.25% to 0.55% per year. The declaration and payment are due around January 15, and the value is re-declared on a multi-year cycle. Miss the filing and the penalties and interest accrue on top. The full mechanics — and the deadline that catches owners every year — are covered in the holding-structure guide.
What taxes does a foreign property owner pay each year?
Three annual taxes, three different bases, three different deadlines. The corporation tax only exists if you chose to hold your property in a company — which is exactly why the holding decision is a tax decision, not just a paperwork one.
| Property tax | Luxury home tax | Corporation tax | |
|---|---|---|---|
| Legal name | Impuesto sobre Bienes Inmuebles | Impuesto Solidario | Impuesto a las Personas Jurídicas |
| What it taxes | Registered value of the property | Total value, if construction clears the threshold | The company itself (S.A. / S.R.L.) |
| Rate / amount | 0.25% per year | Progressive ~0.25%–0.55% per year | Fixed annual fee (by income band) |
| Trigger | All owners | Construction value over the annual threshold | Holding the property in a company |
| Paid to | The municipality | National tax authority (Hacienda) | National tax authority (Hacienda) |
| When | Quarterly / annually | Around January 15 | January (first quarter) |
Every rate, threshold and amount above is adjusted by the government from year to year. Treat these as the 2026 draft figures and confirm the exact numbers for your property and holding structure before you budget or file.
Do I owe corporation tax if I hold my property in an S.A. or S.R.L.?
Yes — and this is the tax owners most often forget. Every Costa Rican company (Sociedad Anónima or S.R.L.) owes an annual corporation tax, the impuesto a las personas jurídicas, whether or not it does any business. An inactive company that exists only to hold your house still pays it. The amount is a fixed colón figure tied to the government's base salary (salario base) and the company's income band — lower for an inactive holding company, higher for an active, higher-earning one — and it is payable in January.
Non-payment is not cosmetic: an unpaid corporation tax blocks filings at the National Registry — which can stall or sink a sale — and, left long enough, can lead to the company being dissolved. If you own through a company, this yearly cost, plus the annual RTBF beneficial-owner filing, is the price of that structure. Whether the structure is worth it is a real decision, not a default — the corporation-versus-personal-name guide weighs both sides.
How do I keep my Costa Rica property taxes current from abroad?
Most owners live overseas, so the risk is not the rate — it is missing a filing you never got a bill for. Remember that 13% IVA applies to the professional and management services around your property, though not to a used home’s resale price. A simple annual rhythm keeps you clean:
- 01
Confirm your registered value
Check the value on file at the municipality and whether a new declaración is due. This is the base for your property tax — and, if the house is high-spec, for the luxury-tax test.
- 02
Run the luxury-tax test each year
Compare your construction value to the current annual threshold. If it clears, the tax is calculated on the total value and the declaration is due around January 15.
- 03
Pay the property tax on schedule
Settle with the municipality quarterly, or pay the year up front where a discount applies. Keep the receipts — they are needed at any future sale.
- 04
Clear the corporation tax in January
If you hold through an S.A. or S.R.L., pay the impuesto a las personas jurídicas and keep the RTBF beneficial-owner filing current, or registry filings freeze.
- 05
Budget the 13% IVA on services
Legal, notarial and property-management fees carry 13% IVA. Factor it into your annual carrying cost so the number you plan for is the number you pay.
Company or personal name?
The holding decision that sets whether you owe the annual corporation tax at all.
Closing costs, escrow & taxes
What you really pay to close in 2026 — transfer tax, stamps and the escrow flow.
Can foreigners buy at all?
The ownership fundamentals and the one coastal exception, before you worry about tax.
Due diligence & title
What I verify in the Registro Nacional before you wire a single dollar.
More in The Journal, or back to the Costa Rica attorney for foreign investors hub.
How much is annual property tax in Costa Rica?
The annual property tax (Impuesto sobre Bienes Inmuebles) is 0.25% of the property's registered value, paid to the municipality where the property is located — not to the national government. On a US$400,000 registered value that is roughly US$1,000 per year. Foreigners pay exactly the same rate as Costa Rican nationals; there is no surcharge for foreign owners.
What triggers the luxury home tax in Costa Rica?
The luxury home tax (impuesto solidario) is triggered by the value of the construction — the house or building itself, not the land — exceeding the annual threshold set by the Ministry of Finance (CRC 143,000,000 for 2026, per Executive Decree 45358-H, which must be verified). Once construction value crosses that line, the tax is calculated on the total value of land plus construction, on a progressive scale of about 0.25% to 0.55% per year, and is due around January 15.
Do I have to pay corporation tax if my property is held in a company?
Yes. Every S.A. or S.R.L. registered in Costa Rica owes an annual corporation tax (impuesto a las personas jurídicas), whether or not the company does any business. Inactive holding companies pay a lower band and active companies pay more, tied to the government's base salary figure. It is payable in January. If you hold your property in a company purely to own real estate, this is a fixed yearly cost you must budget for.
Do foreigners pay higher property taxes in Costa Rica than locals?
No. Costa Rica applies the same property, luxury and corporation taxes to foreign and national owners at the same rates. Your immigration status does not change what you owe. The taxes are driven by the property's value, its construction value and how you choose to hold it — never by your nationality.
When are Costa Rica property taxes due in 2026?
The annual property tax is generally billed by the municipality and can be paid quarterly, with many municipalities offering a small discount for paying the full year early. The luxury home tax declaration and payment are due around January 15. The corporation tax is payable in January (within the first quarter). Exact dates vary by municipality and by year, so confirm each deadline for your specific property.
Is there VAT (IVA) on property in Costa Rica?
The 13% IVA does not apply to the purchase of a used residential home. It does apply to most services connected to your property — legal and notarial fees, property management, and certain rentals such as short-term tourist lets. Budget the 13% on professional fees and ongoing services, not on the resale price of the house itself.
Not sure what you actually owe on your property?
We start with a Strategic Valuation Session — a focused, paid US$350 consultation (there is no free call) to map your property tax, the luxury tax if it applies, your corporation-tax exposure and the cleanest way to hold the asset, in English. It is credited toward your engagement if we proceed.
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