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[quote=”Scott”][quote=”costaricabill”]I entered all the information exactly as 3 years ago (except that the house is 3 years older and I “got the benefit” of 3 additional years depreciation!) and the tax went from $915 to $1,405, more than 50% increase!
[/quote]Just as a matter of interest, how much would you pay in property taxes on a similar ocean view luxury home in the U.S.? Do you know?[/quote]
Hi Scott – I can’t answer the precise question you asked, but I can tell you that before moving to Samara we had a nice home on the waterfront of Tampa Bay on the west coast of Florida. We had lived there for over 15 years, and we were “grandfathered in” on the local real estate tax so it could not increase more than 3% per year as long as we owned the home. Our tax was about $4,600USD per year when we sold – BUT (and here is the kicker) the real estate tax for the buyer of our home, not being grandfathered, immediately increased to over $24,000USD per year.
Our home here is much newer (we finished it in 2008, versus 1948 for the Tampa home), a bit smaller in size, with a much better view (my “profile picture” is from our back porch). There aren’t many homes in Florida that sit on the side of a mountain and overlook the ocean, so probably something in California would be more germaine to your question.
[quote=”srigsby”][quote=”costaricabill”]I was in Nicoya the other day, so I stopped into the Municipalidad and 5 minutes later the local tax was paid! Same amount as last 4 years.[/quote]
Good info. Last year I paid attorney a fairly nice sum to handle these transactions.[/quote]I have done it each of the years I have lived here, but I was asking earlier about paying at the bank locally so I didn’t have to go to the Municipalidad. Then, I determined I needed to go to Nicoya anyway, so a friend went with me and we each took our tax receipts from last year and a copy of our Catastro. In & out, no problem except for being a healthy sum lighter in the wallet.
My friend also owns a lot in the Canton of Hojancha, so we drove over there and he paid that as well. A little different process there – you take your past year’s receipt or Catastro to the Muni office, they write down the amount of your tax on a small piece of paper that has their account info pre-printed on it, you walk across the park to the BNCR, make the payment (deposit), take the receipt back across the park to the Muni and they stamp it, and you’re done!
Duh – in the process of writing this did I just answer my original question about being able to pay at the local BNCR???
Finally got into the system after loading and uninstalling it several times.
I entered all the information exactly as 3 years ago (except that the house is 3 years older and I “got the benefit” of 3 additional years depreciation!) and the tax went from $915 to $1,405, more than 50% increase!
That’s the penalty for being honest and paying in the tax in the first place!!!
As Sailor correctly pointed out, you now pay tax 3 times if the property qualifies for the “Luxury Tax” and still twice if it doesn’t!
Ecuador is looking better all of the time!
I was in Nicoya the other day, so I stopped into the Municipalidad and 5 minutes later the local tax was paid! Same amount as last 4 years.
[quote=”VictoriaLST”]Would appreciate comments on the following:
We originally thought we would have to pay the luxury tax due to the price of our property. Our attorney told us that, because there are two houses on the property, we do not have to pay the tax. Essentially, the total value is halved, with 50% of the value applied to each house, so no luxury tax applies.[/quote]
Oh dear VLST – I am afraid you received some bad advice! The “price of the property” has NOTHING to do with the requirement to pay the Luxury Tax until AFTER you compute the value of the IMPROVEMENTS constructed (or in place) on the property. If, after you compute that total value of all of those constructed improvements and the value is LESS than the threshhold value required to pay the tax can you then forget about the “price of the property”.
Now, if your property is split into two different corporations, and your improvements are clearly split onto the two separate properties and the value of each those separate improvements fails to meet the threshold value of the tax – you are OK. If not, I am afraid you received some very bad legal advice, because the “price of the land” is the very last determinant in the calculation of the luxury tax!
For further advice I can refer you to a neighbor that tried the same approach (scam) and lost, but I doubt that he is willing to talk about it!This Newsletter arrived to day from an attorney friend that works for Facio & Canos, a very well-respected law firm in San Jose
[i]”[b]Tax on luxury homes[/b]
This Tuesday, January 15th is the deadline to submit and pay the solidarity tax, so below you will find some information that will help you to fulfill this obligation.
This tax declaration should be done every three years, so that those taxpayers who declared before January 15, 2010, are required to file the return again this year adjusted to the new published values, and respecting the new tax sections. The solidarity tax return is made on Form D-179, which was made available to the taxpayer recently (21-Dec-12). In fact, although new values of building typologies were released several months ago, the official tool for calculating the solidarity tax (or luxury homes) was very recently updated (21-Dec-12).
Although the press reported otherwise, the new calculation bases imply that, on average, properties have risen 68% compared to the value they had three years ago when the last return was presented. This average is higher for condominiums (between 80% and 90%) than for houses (between 50% and 70%), between building typologies VC07, VC08 and VC09, which are the majority of those we have attended. Is our understanding that the VC10 typology (= super luxury homes) increases a little more, but we’ve only had one valuation of this type, so we do not dare to draw general conclusions.
The soil or land in general, did not change in value.
Not only is it possible, it is very likely, that houses or apartments that were within the exempt range are now taxed. This happens mostly with properties that were about ¢ 10 million or less below the limit of the exempt range.
In addition there are several items that have changed since the previous statement:
– In general, building square meter (basic unit valuation that has variations depending on the materials) rose from ¢ 370,000 to ¢ 700,000.
– Grass areas increased from 900 to 2000 m2.
– Some condominium elements (such as lakes, prefabricated bridges) were not covered and now they are.
– Some elements of the houses were not covered and now they are contemplated:
o Septic tanks (classified according to the number of people serving the dwelling unit, and are priced independently of the unit)
o “middle area”: terraces, inner patios, open garages, open porches, etc..), previously valued as the rest of the building and is now valued at only 50% (one of the few “favorable” points for the taxpayer).
o welded steel mesh (when no wall).The declaration may be presented in two ways:
• In paper: downloading the D-179 form, filled it manually and presented it along with three copies in any of the collection agencies.
• Online: fills the statement on the website of Direct Taxation ‘and payment is made through connectivity in any of the collection agencies, or is presented at the bank with an official receipt of payment.However, taxpayers who declared for the first time in 2011 or 2012 shall make only the payment of the tax, either through electronic payment (via the internet), or directly at the bank with an official receipt of payment. However, the payable amount should be updated, and before making the payment, exempt base should be considered in order to determine if your home has to pay the tax or not. Those residential assets whose fiscal value of the construction, including the value of the fixed and permanent installations, do not exceed the amount of ¢ 117 million, are exempt.
Remember that the deadline to submit the declaration and the payment due on Tuesday, January 15th, and we do not recommend doing that the last day because the computing platform of the Ministry of Finance is supersaturated. “[/i]
[b]Scott, I don’t think you or your neighbors are targeted any more than me or my nrighbors….. I think once again it shows the 100% total ignorance of the CR government.[/b]
Their thinking MUST BE,
[i]”OK, we originally thought 12,000 to 14,000 homeowners and condo owners would pay this tax, but the first year there were only 1,500 or so and now we are up to 3,500 – so let’s tax the hell out of those that were honest enough to VOLUNTARILY pay the tax in year 1, and 2 and 3 and that will help![/i]I only wish the CR gov’t would take a look at what they are doing to those of us that “are are already here and willing to pay our fair share” and how many of us would gladly leave if only the buyers were not already sophisticated enough to know that the CR government is out to get extranjeros, no matter where we are from!
Right now, my home is has a value of maybe 60% of what it costs to build, and the CR gov’t is trying raise my taxes 60% or more – OK, taxes are indeed low, but still, where is the logic?
bk
Thanks for the info.
I have had this site for a couple of weeks and installed it and tried and tried to get it to open. I keep getting to the first input page and then before I can make the first entry I get either a “server error” or “runtime error” message.
Once it told me that the program would not run on a 64 bit windows program, only the 32 bit version.
I don’t know, I have read that the average increase for category 8 houses is 68%, so I think I’ll fill out my form d-179 form and show a 55% increase, pay it and be done with it.
[quote=”Doug Ward”]Poor Bill. He probably thinks Detroit is [b]IN[/b] the Unknighted Empire too.:lol:[/quote]
Doug – please go back and look at your post!
“…… at Juan Santameria. For those who don’t know; that’s an airport a little over an hour from Costa Rica.”That statement was directed by you “for those who don’t know”.
I was simply trying to correct what I perceived to be an unintentional typo on your part, and correctly inform “those who don’t know” that “Juan Santameria” (sic) was in fact [b]in[/b] Costa Rica, not “over an hour [b]from[/b] Costa Rica”.
We all know there is enough confusion about the location of Costa Rica and the confusion over “how do you like living on the island?”, so my effort was simply to let those who don’t know that they can indeed fly into Costa Rica and they don’t have to fly to some neighboring country and then have to travel to Costa Rica via water buffalo with sherpa guides (or worse).
[quote=”Coyote”]
Thank you, but it’s not clear; the article says ” at the beginning of next year…”. And the parution date is Oct. 2012. So…???[/quote]This is also part of the AMCR article on immigration:
[i]”The provisions for the fee and the requirement to stay out of the country for three times the illegal period are in the 2010 immigration law, but the measure had not been enforced until now.”[/i]
So it appears that they have the right to enforce it now but have elected to wait until “the beginning of next year”. So if you are over your 90 days, it may behoove you to make a quick dash to the border within the next 48 hours. Happy New Year!
OK, time for confession:
In 1969 I went though USMC boot camp at Parris Island, SC. In 11 weeks, I lost 66 pounds, and I watched pounds of salt go into everything that came out of the mess kitchen except maybe the cereal, milk and ice cream that I survived on. Sure the physical training (PT) and exercise that I endured had the biggest impact on my weight loss, but I decided at that time that the mess kitchen was including enough salt in my diet that I really didn’t need any more. Since the day I left Parris Island, haven’t touched a salt shaker except to pass it someone else upon request at the dinner table.
I am still convinced that anyone who cooks for me, my bride of 42 years or the chef that cooks for me in the white table cloth restaurant, or the cook in the beach bar – they all use enough salt to satisfy my needs.
This discussion has been very enlightening to me. I never knew there were so many kinds and colors of salt. I’m too “ingrained” in my ways to change now at such an advanced age, but I certainly do appreciate and admire those that know so much about salt, the different types, the benefits of each and the dangers of each.
Now flouride, flourine or whatever. I buy my water from the local Asada. I don’t know if it has fouride, florine, flour or arsenic it it, it taste great to me. Before I moved here, I bought it from the city of Houston, the city of Austin, and the cities of St. Petersburg, Clearwater and Tampa. As far as I am concerned, I am still vertical and taking nourishment, so being that their water got cold enough to make good clear ice for my cocktails, that was all I could ask for.
I have lived long enough to enjoy my professional and social lives, 4+ great years in Costa Rica, my wonderful wife, 2 kids and 6 grand kids that visit for 6 weeks each summer, and a coterie of wonderful friends here in Samara.
In short, I think a lot of you people get too stressed out about what you eat and the water you drink. Relax, your days are numbered and you can’t change that!
[quote=”its.cabs”]
As far as overstaying your welcome, a huge, muddy topic here, the chief of immigration told my attorney that as an American, all I need to be in Costa Rica, legally, is a valid passport that is good for at least 90 more days, that’s all. No leaving the country every 90 days or any of that nonsense. Just be sure you have a valid passport that is good for at least 90 more days. That’s straight from the top. Bueno suerte.[/quote]its.cabs –
I think your attorney is wrong, or something was lost in translation, and indeed needs a bit of clarification.As published previously on this site, here is the portion of the current immigration law that specifically states the requirement to leave the country, and the only exception allowed (which now is only an exception if you have a CR drivers license). This section also details the fines and possibility of not being able to return.
[b]LEY GENERAL DE MIGRACIÓN Y EXTRANJERÍA
Nº 8764
Publicada en La Gaceta n.º 170 de 1º de setiembre de 2009
Nota: Rige seis meses después de su publicación.[/b]
__________________________________________
LA ASAMBLEA LEGISLATIVA DE LA REPÚBLICA DE COSTA RICA
DECRETA:
LEY GENERAL DE MIGRACIÓN Y EXTRANJERÍA[b]Article 33[/b]
3) Las personas extranjeras tendrán la obligación de egresar del país cuando venza el plazo de permanencia autorizado por la autoridad migratoria, salvo que medie la solicitud de un cambio de categoría o una prórroga otorgada por dicha autoridad migratoria. Toda estancia irregular en territorio costarricense hará que las personas extranjeras deban cancelar una multa migratoria equivalente a cien dólares moneda de los Estados Unidos de América (US$100,00), por cada mes de estancia irregular en el país o, en su defecto, se les prohibirá el ingreso por un plazo equivalente al triple del tiempo de su permanencia irregular.[b]google translation (emphasis added)[/b]
[b]Article 33[/b]
3) Foreign nationals will be required to leave from the country at the expiration of the period of stay authorized by the migration, [b]except with the request for a change of category or such extension granted by immigration authorities[/b]. Any unauthorized residence in Costa Rican territory by foreigners will be assessed a fine equivalent to one hundred dollars currency of United States of America (U.S. $ 100.00) for each month of illegal residence in the country or, alternatively, be barred from admission for a period equivalent to three times the length of their stay irregular.Seems pretty clear to me, no more “clarification” needed.
[quote=”Coyote”]Question: My ex-wife and I own some properties in CR. I am living in another country, but she’s still there. The problem is that her Visa is expired since 2 years.
Means 2 years she didn’t exit the CR. Now she has a new passport (previous one was stolen). What will happen when she’ll exit?
Thanks[/quote]When was the new passport issued, and when she received it did they put any kind of “entry stamp” in it?
[quote=”sprite”]
Good advice, Costaricabill, but you don’t know my circumstances.In any case, I am delighted to hear that I have irritated both right and left because that means I have been successful in leaving the right-left paradigm created to distract us. (this is why you find no meaning in what I am saying …because it doesn’t fit the parameters of the false world you have been brainwashed to believe in)
You should try to leave that false paradigm.. It helps focus on what really is happening and what really matters.[/quote]
“There you go again!”
Ronald ReaganActually Sprite, my family and I live a very good, happy life in what you may perceive as my “false world”. And suffice it to say, that is probably the norm for most others on this forum and surrounding you in the “real world” as well.
I truly am sorry that you are so troubled and unhappy and suspicious of anything and everyone out of your “norm”. I hope that 2013 brings you some happiness and cheer, but I doubt that it will.
