Jenny Phillips, of the ministra de Hacienda. said on Thursday it is extending the deadline for the payment of the luxury home tax.  Luxury home owners  will have until January 15, 2010 to pay the tax and not December 31, 2009.   (This refers to the new law recently passed imposing tax on Luxury Costa Rica Real Estate)

Only 600 of the estimated 10.000 owners of luxury homes have already paid.

The fact that many offices are closed for the year end holidays and the complexities experienced by the tax department has complicated matters for many, both the taxpayers and the tax collector,  the other reason for the extension.

October 1, 2009  lawmakers passed a law that imposes a special tax homes valued at more than ¢100 million colones. Approximately $180,000)

The tax is expected to raise some ¢10 billion colones for government coffers, money that would be used to eradicate slums.

The law requires that every owner of a luxury home ( any home valued at ¢100 million colones or more, be it free standing or part of a condominium) must pay the tax or face sanctions that include fines and possible confiscation of the home.

Home owners who don’t pay up by the deadline face a fine of up to 10 times the original tax, plus interest.

The tax is for a 10 year period, beginning this year.
This is the first time that the tax department has attempted to collect a property tax in one lump sum.   Francisco Gamboa, director general de Tributación, said that this has been a learning experience both for the taxpayer as the tax collector.

Some of the complaints filed with the tax department so far is the complications of the form and the manner of payment. In some cases taxpayers have reported difficulties in paying the tax, no matter how hard they tried.

It is recommended to hire a professionals to complete the forms and service of calculation and payment of tax.

The price for the professional services vary. The service can cost between us$200 and us$2.000 or more. Some firms offer certificates of evaluation to assure the taxpayer that the evaluation and contribution is not unfounded.

Some owners of the luxury home tax are totally confused as if they should pay or not. Adding to the confusion it the possibility of a Constitutional Court challenge to the tax law, which could stall the payment or collection of the tax until the courts resolve the issue. However, no such appeal has been filed as yet.

To see if you should pay, we offer the following advice:

1. Determine the type of housing based on Manual de Valores Base Unitarios por Tipología Constructiva, which is available on the Ministerio de Hacienda website (https://www.hacienda.go.cr).

2. Obtain the m2 (per square metre) value of the home.

3. Calculate the depreciation that corresponds to your home depending on the type of housing that it corresponds.

4. If the value of the home is more than ¢100 million colones, the property is subject to the tax.

I have listed a few of the reasons people are choosing San Ramon for Costa Rica Retirement.
This is information important to one’s decision in choosing location

It is located 10 13’ 13’’ latitude North, 84 35- 20 longitudes West. 40 Miles North of San Jose, and about 3468 feet above sea level. Situated in the Alajuela province, just off the Interamerican highway.

• Distances from other places
• Airport 35 minutes
• San Jose 1 hour
• Beaches 45 minutes
• Mountains 15 minutes
• Volcano Arenal 1.5 hour
• Golf 45 minutes
• Lodging, Resorts, B&B, Hotels, all in and around San Ramon
• It’s warm and breezy year round, about 74 F.
• It is the most important city out of the Great Metropolitan Area. Is the Regional Center for many public entities, It has all the public services (Major hospital, Private clinics, Red Cross with free ambulances services, Schools, Churches, Universities, UCR, University San Jose, and so on)
• It is an important commercial center. The commercial activities in town are shoe stores, clothing stores, restaurants, bars, discotheques, jewelry stores, public market, weekend ferias of the agriculture with very cheap produces and fruits etc, and there’s even a small shopping center in the entrance of San Ramon from the highway. Its principal agriculture activities are the coffee, ornamental plants and sugar cane plantations.
• European settlers colonized San Ramon in the 1840’s, and started developing the land of this little colony for farming. It is also known as the “City Of Poets” (for many and important Costa Rican poets were born here) and three ex presidents of the Republic were born and brought up in San Ramon.

As some areas of Costa Rica are becoming over-developed, San Ramon is a unique gem located in a mountain valley, It has retained its laid-back Pura Vida life style and affordability, for example most of the stores in the downtown area close from 12 pm to 2 pm. San Ramon is just being discovered by an International community craving a real Costa Rica.

Here we have properties in San Ramon for every taste and wallet, from downtown houses, guarded communities, small to medium farms to big fincas, with prices ranges US$ 5.00 square meter of land, US$ 30.000.00 for lot with a small house, to million dollars properties.

Just let us know what you would like and will find it for you.

I chose San Ramon for its many wonderful interesting places to visit, plenty of activities for everyone, the slower pace of life that attracts locals and visitors, the charming people, the appealing climate, the beautiful mountain and coast views, the easiness to find any service or product that you need in a very anti stressful and quick way.

It’s just the perfect place to live if you want to enjoy peacefulness and comfort in even a very affordable way. And be close to everything.

Choose, San Ramon. I did and I don’t regret it… AT ALL!

Any questions do not hesitate to contact us.

Michel Paulin  toll free 1 888 581 1786

http://es.wikipedia.org/wiki/San_Ram%C3%B3n_%28cant%C3%B3n%29
http://www.sanramon.go.cr/
http://www.so.ucr.ac.cr/