Tax on luxury homes governed from July

New tribute governed for ten years.

Residences with values higher than ¢ 100 million will be taxed, the cost of land is exempt.

If you have one or several houses worth over ¢ 100 million is prepare your checkbook, because starting next month will have to pay a tax on these properties.

As of July will go into effect the tax on luxury homes passed by Congress in October last year.

The regulations are ready to be used to evaluate the properties and the software will be done through the collection. Just subtract its publication in the Official Gazette, which would be another week.
These tributes, which will run for ten years, with the houses impose a market value of ¢ 100 million now, but it is possible that after this time the law is reformed to extend the deadline.

This collection excludes land where the homes are located.

The collection will be phased so that the larger the value of the home, the more it must pay.

The new tax, also known as solidarity tax will be used to develop various programs to eradicate slums.

There are several estimates on the amount that could be recovered. The Ministry of Housing is expected that about ¢ 25 billion per year, which would be detailed in the Treasury about ¢ 21 billion and an annual survey indicates that the Legislature would at least ¢ 9.653 million per year.

In the National Register of Costa Rica, there are 6.492 properties whose amounts are greater than ¢ 100 million.

Once you start being charged, the Department of Taxation shall manage this tax and await a statement updating the taxable value every three years, beginning January 15, 2010.

Will not have to pay or declare property taxpayers with a market value of less than ¢ 100 million, no social institutions or nonprofit, the diplomatic or the homes of diplomats and consular agents.

A few weeks for this new tax starts to be charged, experts suggest that its effectiveness depends on the thoroughness with which the charges are made.

“It will depend on the rigor and control that will be charged the new tax regulations that are developed should be very cautious, because this project itself is very controversial and at any time would be expected to be seen from the constitutional review, “said Francisco Villalobos, an economist at ICS Consultores.

Meanwhile, the real estate sector there is also some speculation that they would take turns on their sales after the implementation of this recovery. Yalile Alpízar, president of Costa Rica Luxury Estates, said that his company is aware of the need to support the social sector in the country, but acknowledged that this new tax, added to the crisis could hit the sector, as several of his clients diverted economies look like Panama.