Trying to understand the new luxury tax? The details are vague, but
these tips may help you get started.
Recent information makes this page less useful than before.
Possibly the best choice at this moment is to download some
software available from the Hacienda Web site used to calculate
property values.
Links are available to
relevant documents and software, as well as
further information and discussion.
This form will correctly calculate the tax due for a given
property value in various currencies. However, your estimation
of property values will almost certainly be different from Hacienda
calculations. Trying to use replacement costs or market values will
grossly overstate your tax due.
First calculate the value of building(s) on the property. Only if
the building(s) are worth more than 100 million colones is tax is due.
This has nothing to do with current exchange rates or construction
costs. After using the Hacienda software application, you will find
that it's better to estimate based on size of the house(s) on a lot.
For brand-new, high-quality construction of less than 3,000 ft2 no
tax is probably due. A home 8 to 10 years old would need to be over
3,500 or even 4,000 ft2 before any tax is due.
If you will owe tax, the second step is to determine the value
of land and add this to the property value before calculating the
tax. As of 10-Jan-2010, the Hacienda Ministry decided that simply
using the land value on file at the local Municipality is sufficient.
Enter the full property value in the
"Total Value" box, below. Select an Exchange Rate, then
click the [Estimate] button. The results will give you a
rough idea of your potential tax liability.
The tricky part is to determine the correct property value
as defined by the Hacienda Ministry.
See the links above for other options.