The short answer
The yearly property tax is 0.25% of the value registered with the municipality, so a lot recorded at $30,000 costs about $75 a year. The luxury home tax only applies to buildings above a high value, not to bare land. Holding the land in a company adds a small annual corporate tax and filings.
- Property tax
- 0.25% a year
- Of the value declared to the municipality
- Luxury home tax
- From ¢143 million
- 2026 threshold, on construction value only
- Inactive company tax
- ¢69,330
- 2026 amount, if the land is held in a company
The municipal property tax
Every property pays the impuesto sobre bienes inmuebles to its local municipality: 0.25% of the registered value per year. It can be paid once a year or in quarterly instalments.
Owners are expected to file an updated value declaration with the municipality every five years. On raw rural land the amounts are small, which is one reason holding costs in Costa Rica are low.
The luxury home tax does not reach bare land
The solidarity tax, usually called the luxury home tax, is charged on the value of a building and its fixed installations once that passes a threshold: ¢143 million for 2026. Rates start at 0.25% and rise to 0.55% on the most valuable homes.
A lot with nothing built on it does not pay it, and a modest house will not come near the threshold.
If the land is held in a company
A Costa Rican company pays an annual corporate tax even when it does nothing but hold land. For an inactive company the 2026 amount is ¢69,330. It also has yearly filings, including the beneficial-owner declaration.
Unpaid taxes stay with the land
Back taxes follow the property, not the previous owner. Before closing, ask for a municipal certificate showing the lot is up to date, and have your attorney confirm it.
When you sell
Since 2019 Costa Rica taxes the gain on a property sale, generally at 15% of the profit. The rules have exceptions, so ask an accountant to run the numbers before you list.
Questions buyers ask
No. The rate is the same for foreigners and Costa Ricans.