The Ministry of Hacienda Tax in Costa Rica has readjusted the property values of ‘luxury’ homes therefore increasing real estate taxes ten-fold.
The Hacienda defines ‘luxury homes’ as any home valued at $234,000 and above. The real effect on the property value adjustment will be to increase real estate taxes on those homes anywhere from 57 percent to 150 percent.
This was the first property readjustment in six-years. The 2010 real estate taxes on luxury homes have been based on 2007 property values. Many Americans and foreigners own these ‘luxury’ homes as their retirement residence and/or as investment property.
With the definition of ‘luxury’ home being expanded homes and condominiums that were not paying property taxes is now expanded.
The inevitability of higher taxes is here - the luxury tax is due tomorrow.