Property owners in Costa Rica need to distinguish municipal property tax, the solidarity tax on qualifying homes, rental-income tax and taxes connected with a sale. These are separate obligations with different bases. A single percentage cannot describe all of them.
Official municipal and Hacienda sources reviewed September 8, 2026. The solidarity-tax figures below apply to 2026. Confirm your own valuation, classification and filing obligations before paying.
Municipal property tax: 0.25% annually
Article 23 of Law 7509 sets the ordinary property-tax rate at 0.25% of the value registered by the municipal tax administration. The Municipality of La Unión explains this calculation. This is not a municipal rate ranging from 0.25% to 1.5%, and the applicable valuation is not necessarily the price shown in a property advertisement.
For illustration, a taxable registered value of ₡100 million multiplied by 0.25% gives ₡250,000 annually, before any applicable exemption or other adjustment. Municipal service charges are separate; do not assume that this calculation includes waste collection or every item on a municipal bill.
Valuations, declarations and exemptions
Ask the municipality for the registered property value, statement of account, payment schedule and any declaration or valuation notices. Review whether the record reflects the property and improvements accurately. A purchase, construction or other change may affect the information the administration holds.
Exemptions depend on legal conditions; they are not automatic merely because an owner has a low income or calls the property agricultural. Submit the required evidence and obtain a decision where necessary. If disputing a valuation, act promptly on the actual notice and seek advice about the applicable process and deadline. Keep a copy of what you submit and proof of receipt.
Solidarity or luxury-home tax in 2026
Hacienda’s 2026 notice applies to qualifying residential, occasional-use or recreational properties when the construction and fixed permanent installations exceed ₡143 million. It states January 15, 2026 as that year’s deadline and identifies form D-174 in the OVi office of TRIBU-CR.
The notice gives progressive bands from 0.25% to 0.55%. The threshold test and the full taxable valuation are different questions: do not assume that land is excluded from the calculation because the entry threshold refers to construction. Hacienda’s older valuation manual includes land in the total; use the current form and instructions for the period being filed, rather than the old manual’s filing-interface steps.
This tax is separate from ordinary municipal property tax. A home purchase late in the prior year does not by itself remove the obligation. If the deadline has passed, obtain the correct current filing and payment calculation rather than reusing a past year’s threshold or ignoring the liability.
Rental-income tax and landlord obligations
Hacienda’s rental-capital-income explanation shows a 15% deemed expense deduction from gross income and a 15% rate on the resulting taxable amount. In that regime, the arithmetic is 15% × 85%, or 12.75% of gross rental income. That is a calculation for the stated regime, not a universal rule for every business or rental arrangement.
For example, ₡1 million of gross income less the 15% deemed deduction leaves ₡850,000; 15% of that is ₡127,500. Have an accountant establish whether this capital-income treatment or another applicable tax regime governs the activity. Hiring a cleaner does not, by itself, establish the correct treatment.
VAT is a separate question from income tax. The nature of the accommodation or lease and any applicable exemption matter. Do not add 13% to every property transaction or assume every rental is VAT-exempt. Keep leases, invoices, payment records and expense documentation, and confirm registration, invoicing and filing obligations for the actual activity.
Selling or transferring real estate
A sale can involve transfer taxes, registration charges, professional fees and a possible capital-gains obligation. These are different items. Ask the notary for an itemized closing statement identifying each tax, its base and who is responsible for it. Do not use a single estimated percentage as though it were the entire legal closing cost.
Hacienda’s capital-gains rate table states a general 15% rate on capital gains. It also identifies an option, for the first sale of qualifying assets acquired before July 1, 2019, to apply 2.25% of the sale price. Eligibility, exemptions, basis and any withholding require an individual review; do not confuse a tax on a gain with a tax on the whole property value.
Owning through a company
Company ownership can bring additional obligations distinct from municipal property tax. Review company-tax status, accounting, beneficial-owner reporting and any rental activity with an accountant. An inactive company and an operating rental business should not be assumed to have identical filing requirements. Neither company ownership nor foreign nationality is a reason to reuse an unsupported blanket tax figure.
What to gather before a tax review
- Property identification, registered ownership and municipal statement.
- Purchase documents and dates, valuations and improvement records.
- Rental agreements, receipts and the activity’s registration details.
- Company information where the owner is a legal entity.
- Prior returns, payment confirmations and any official notices.
Use Hacienda’s official site for national tax information and the relevant municipality for municipal charges. Our property-buying guide covers the separate title, water and financing checks needed before a purchase.