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Got a property tax evaluation given to us in the Orotina area yesterday saying our property tax will increase 300% from around $400 to $1200 per year next year,
I am thinking that the govt is seeking to recover more money from property owners across the board to boost revenue.
It also appears our property has crossed over into the luxury range above $300k,
maybe that’s why. The sad part is that we had little notice and we have 15 days to appeal. Additionally I think it’s unfair to levy such a huge increase in such a short period.I assume we need an engineer study or something to re-evaluate our property to submit the appeal.
Appreciate any comments and wonder if others looking at Tax increases similar?
Thanks,
Pebo
Like most governments, Costa Rica’s government is pretty much bankrupt and are trying to collect money where they can.
The good news?
You’ve obviously managed to dodge this tax for many years….
The bad news?
We’ve written about luxury property taxes on this website for over six years so sorry! This should not be a surprise to any property owner in Costa Rica.
I remember fondly the more than $10,000 per year I paid in property & schools taxes on our modest home (which cost $242,000 in 1987) in Westchester County in New York 19 years ago so I’m certainly not complaining about the trivial amount we pay here.
As far as an appeal is concerned, I would strongly suggest you ask the Municipality what exactly they will accept as part of the appeal. They might only accept evaluations from specific, ‘;approved’ appraisers…
Good luck!
Scott
Well pebo …
Like Scott intimated, Costa Rica is pretty much headed in the same direction as the US, spending way too much more than it takes in and concentrating it’s taxation on the very few.
The luxury tax is really very different than your “property tax” though it is also levied on your property.
It was instituted as a temporary tax (Yeah! We’ve all heard that one before!) to help poorer Ticos get affordable housing. I think that it was only supposed to be for 10 years. But keep this in mind, there is no such thing as a temporary tax. We, in the US, are still paying taxes levied in WWII on items to curb demand.
Your property tax is paid to the canton. Your luxury tax is paid to the Ministry de Haciendas. http://www.hacienda.go.cr/ There is software available on their site to allow you to calculate your luxury tax. And yes, when the value of your structures exceeds a certain threshold, the luxury tax is also levied on the land itself using completely outrageous values per square meter.
It is not unusual to see land in gated communities valued at $100/ sq meter.
And yes, as Scott said, there are places in the US, generally highly liberal and socialist leaning, that have very high taxation on property. Their school districts are even taxing authorities that can levy taxes at will. And Costa Rica is not there yet but it seems that that is where they are headed … and where they want to be.
There are places, like Panama, that are doing all that they can to attract people of means, offering wide arrays of senior discounts (even on air fare), etc. Costa Rica has been making it pretty clear over the last several years that you are going to pay heavily to be an expat there.
Like most of the developed world, Costa Rica is facing a birth rate implosion. It may take 20 more years and severe economic depression, but their thinking will be modified eventually.
http://www.tradingeconomics.com/costa-rica/population-growth-annual-percent-wb-data.html
Based on my(completely unscientific) study of Costa Rican real estate websites over the last 6-7 years, it seems to me that, for probably the first time in Costa Rica’s history, there are more people of means trying to get out of the country than are trying to get in.
Take care.
[quote=”BillNew”]It is not unusual to see land in gated communities valued at $100/ sq meter…. [/quote]
For the record… $100m2 for land where we live is CHEAP! The most recent land (approxiamtely 12,000m2)was bought by one of our developer clients in Santa Ana for $120m2
Prices in Villa Real in Santa Ana for individual home lots are around $300m2 and in Valle del Sol between $250-$350m2
Scott
[quote=”Scott”]
For the record… $100m2 for land where we live is CHEAP! The most recent land (approxiamtely 12,000m2)was bought by one of our developer clients in Santa Ana for $120m2Prices in Villa Real in Santa Ana for individual home lots are around $300m2 and in Valle del Sol between $250-$350m2
Scott
[/quote]
Geez !!
With 4047 sq meters to the acre … you’re looking at over $1.4 million per acre. Not really looking to appeal to the “huddled masses” at those prices .. eh?
And I thought $4.72 per sq meter was outrageous for a bit over 11 hectares just north of Atenas. I’m not really the gated community type. I’m more of a End of the Roader.
Take care.
99.99% of the “huddled masses” can’t enter places like Villa Real….
I LOVED my [url=https://www.welovecostarica.com/public/Scotts_Mountain_Home_With_Unbelievable_Views.cfm]home in the mountains[/url] which was most definitely at the end of the road but, then encountered a ‘muscle disease’ which forced us to sell…
Thankfully at age 55, I am healthier and fitter now than I have been in 15 years.
Off to the swimming pool now as a matter of fact…
Have a great weekend!
[quote=”Scott”]99.99% of the “huddled masses” can’t enter places like Villa Real….
[/quote]True … and therein lies the true meaning of “exclusive”. Most folks use the term without thinking that what it really means is to exclude or deny the overwhelming majority.
That is where the former presidente and her husband live, right ? I guess if you finance the Caldera highway, you get your own entrance/exit ramps. I like it’s proximity to Escazu and all that goes with that, but having spent most of my life living two miles north of the sixth busiest airport on the planet, you can’t imagine how much it means to me to sit on top of a hilltop and look south and see an eastbound flight into Juan Santamaria … and not be able to hear it.
Valle del Sol has little appeal to me. It reminds me of that song that was the introduction to the Netflix series [b]Weeds[/b] … “Litle boxes, Little boxes …” Of course, in fairness, I guess much of the appeal is lost if you don’t play golf. Personally, I’ll chase that little white ball when I’m too old to chase anything else.
[quote=”Scott”]I LOVED my [url=https://www.welovecostarica.com/public/Scotts_Mountain_Home_With_Unbelievable_Views.cfm]home in the mountains[/url] which was most definitely at the end of the road but, then encountered a ‘muscle disease’ which forced us to sell…
[/quote]
I love your mountain home too. Those views are nothing short of stunning! However, I have abused my lungs for far too long to ever consider living at 7000 feet. It also looks like it would have been a solid two hours to the CIMA hospital, which would have been another deal-breaker. When you work, sometimes you get hurt and somebody has to patch you up and get you back out there. And even work aside, mother nature can be a cruel old hag sometimes.
[quote=”Scott”]
Thankfully at age 55, I am healthier and fitter now than I have been in 15 years.
[/quote]I have no problem at all believing that. I’m a year behind you but I can spend 5 days in CR, eat like a pig, and lose 8-10 pounds. What you’re eating makes a ton of difference i.e. a banana vs. a can of Pringles.
[quote=”Scott”]
Have a great weekend![/quote]You do the same !
Costa Rica is expensive, even more so than the states. In South Carolina you can get acreage, a beautiful home and taxes under $1000
http://www.oldhouses.com/8366?searchlist=10620,24583,24591,24696,24702,24499,24685,8366,24877,24293,15418,9426,24483&searchname=Listings%20In%20South%20Carolina&searchdest=%2Fcf%2Flistinglist%2Ecfm%3Fq_listingstate%3DSC%26searchname%3DListings%2BIn%2BSouth%2520CarolinaIn CR many homes are for sale, but the majority of buyer who can afford them are not ticos; this results in a huge rental market one of the only goods deals besides mangos. The end result of Socialism is you eventually run out of other peoples money.
[quote=”rfs1975″]The end result of Socialism is you eventually run out of other peoples money.
[/quote]
Margaret Thatcher once said that “The trouble with Socialism is that eventually you run out of other people’s money.”
Costa Rica and the United States have not yet learned this lesson … but they will eventually …
If you want to live like an American in CR, it will cost from one fourth to one half more than living in the US.
I loved Maggie Thatcher !
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