What the New Impuesto Solidario Thresholds Mean for Buyers Above $1M

The Impuesto Solidario, Costa Rica's annual luxury home tax, applies to residential properties with a declared construction value exceeding a threshold set annually by the Dirección General de Tributación. For 2025, that threshold has been adjusted upward to reflect inflation, but the effective rate structure remains progressive and can represent a meaningful carrying cost for high-value properties.

For international buyers, the key consideration is not the tax rate itself, which remains modest by global standards, but rather how the property's declared value interacts with the threshold. Properties with construction values between approximately ¢137 million and ¢700 million fall into the standard bands. Above ¢700 million, the marginal rate increases to 0.55%.

The practical impact for buyers in the $1M to $3M range is typically between $1,500 and $6,000 annually. For properties above $3M, the annual obligation can reach $10,000 to $15,000. These are not prohibitive figures for the target buyer profile, but they should be factored into total cost of ownership projections.

Structuring considerations are relevant here. The tax applies to the construction value as declared in the municipal registry, not to the total property value including land. This distinction matters because land-heavy properties, particularly large estates or beachfront parcels with modest structures, may have a lower effective tax burden than their total market value would suggest.

We recommend that international buyers work with their legal counsel to ensure the municipal declaration accurately reflects the construction component. Neither over-declaration nor under-declaration serves the buyer's long-term interests, as both create complications during resale or estate planning.