On December 23, 2016, Executive Decree number 40090-H was published establishing the new brackets for the payment of the Luxury Home Tax (Solidary Tax) for the year 2017.
These will be the brackets applicable for 2017 for said tax:
|Bracket||Tax to be applied|
|From 0 colones to 126 million colones (from $0 up to $229,090.91)||Exempted|
|Over the excess of 126 million colones up to 316 million colones (from $229,090.91 up to $574,545.45)||0.25%|
|Over the excess of 316 million colones up to 634 million colones (from $574,545.45 up to $1,152,727.27)||0.30%|
|Over the excess of 634 million colones up to 950 million colones (from $1,152,727.27 up to $1,727,272.73)||0.35%|
|Over the excess of 950 million colones up to 1,268 million colones (from $1,727,272.73 up to $2,305,454.54)||0.40%|
|Over the excess of 1,268 million colones up to 1,584 million colones (from $2,305,454.54 up to $2,880,000.00)||0.45%|
|Over the excess of 1,584 million colones up to 1,903 million colones (from $2,880,000.00 up to $3,460,000.00)||0.50%|
|Over the excess of 1,903 million colones (over excess of $3,460,000.00)||0.55%|
The 2017 Luxury Home Tax must be paid no later than January 15, 2017, or otherwise the corresponding penalties shall be paid.
(1)- The tax amount is calculated over the declared value of the house as per the corresponding value declaration that has to be made in accordance with the parameters established by the Tax Administration.
(2)- Dollar amounts are estimated based on a 550 colones per dollar exchange rate.
(3)- The percentage indicated for each bracket is the percentage applicable to that bracket only.