Property Tax Valuation in Costa Rica

Property tax assessment in Costa Rica is based on the Property Tax Law (Law No. 7509) and is carried out by the municipalities in each province of the country. Although I don’t have access to real-time information, I can provide you with a general overview of the property tax assessment process in Costa Rica, which was in effect until my last update in September 2021. Please note that regulations and procedures may have changed since then, so I recommend consulting official sources or local experts for up-to-date and specific information on this topic.

In Costa Rica, property tax is calculated based on the cadastral value of the property. The cadastral value is determined through an assessment conducted by local municipalities. The general property tax assessment process includes the following steps:

  1. Property Declaration: Owners must submit an annual declaration of their property to the corresponding municipality. This declaration provides detailed information about the property, including its location, dimensions, type of construction, among other details.
  2. Inspection and Evaluation: The municipality conducts a physical inspection of the property to verify the information provided in the declaration. Additionally, factors such as the property’s location, access to public services, type of construction, among others, are evaluated to determine its cadastral value.
  3. Tax Calculation: Once the cadastral value of the property is determined, the corresponding tax rate is applied, which varies depending on the municipality and the property’s location.
  4. Tax Notification: After calculating the property tax, the municipality notifies owners about the amount to be paid and the deadlines for payment.
  5. Tax Payment: Owners are required to pay the property tax within the deadlines established by the municipality. Failure to pay the tax on time can result in fines and surcharges.

It’s important to note that rates and regulations can vary from one municipality to another in Costa Rica. Additionally, rural and urban properties may be subject to different tax rates and assessment criteria. I recommend contacting the local municipality in the province where the property is located to obtain specific and updated information about the property tax assessment process in that area.