Tax Rates for Strengthening Solidarity Housing Programs (ISO)
The solidarity tax, also known as the “tax on luxury homes,” was created by Law No. 8683 on November 19, 2008 and had been in effect since October 1, 2009. The official title of this tax is the Solidarity Tax to Strengthen Housing Programs. This tax was created to fund decent housing for people living in extreme poverty and it is not deductible for purposes of income tax.
Taxpayers of this tax are owners or right holders of residential real estate which is being used only occasionally or for recreational use. These properties also include both fixed and permanent installations and so they are also included in this tax. Permit holders and occupants on the sea-land boundary or any other property area granted by the State or its institutions are also covered by this tax.
To calculate the tax, we must know the value of the principal building along with any accessory buildings (ranch, pool, walls, internal roads, sports fields, etc.). The Securities Manual Base Unit for Constructive Typology is available for determining the value for the solidarity tax. Once you have determined the value of the building(s), if this amount exceeds the exemption amount, you must calculate the value of the land and add it to the value of the building(s). The sum of these values will provide the total value of the property.
The tax value of the property should be calculated according to the tax base as Executive Decree No. 35515-H using the base and progressive rates that must be updated in December of each year by the government. The presentation of this tax will take place every three years. This three-year cycle currently consists of the years 2019, 2020 and 2021. For 2020, this tax is applied to buildings whose tax value exceeds ₡ 133,000,000.00.
Below are the rates for 2019 and 2020 which are to be applied to the total amount without excluding the exemption amount:
|Tranches 2019||Tranches 2020||Rates|
|Until||¢ 329,000,000.00||¢ 334,000,000.00||0.25%|
|Too much||¢ ¢ 659,000,000.00 329,000,000.00 and up||¢ ¢ 670,000,000.00 334,000,000.00 and up||0.30%|
|Too much||¢ ¢ 988,000,000.00 659,000,000.00 and up||¢ ¢ 1,004,000,000.00 670,000,000.00 and up||0.35%|
|Too much||¢ ¢ 1,318,000,000.00 988,000,000.00 and up||¢ ¢ 1,340,000,000.00 1,004,000,000.00 and up|
|Too much||¢ ¢ 1,646,000,000.00 1,318,000,000.00 and up||¢ ¢ 1,673,000,000.00 1,340,000,000.00 and up||0.45%|
|Too much||¢ ¢ 1,978,000,000.00 1,646,000,000.00 and up||¢ ¢ 2,010,000,000.00 1,673,000,000.00 and up||0.50%|
|Too much||¢ 1,978,000,000.00||¢ 2,010,000,000.00||0.55%|