Countries › Costa Rica › Guide › 6. Taxes › Local taxes in Costa Rica: 0.25% municipal property tax, the municipal business licence tax and the yearly tax on legal entities

Local taxes in Costa Rica: 0.25% municipal property tax, the municipal business licence tax and the yearly tax on legal entities

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Last verified: 2026-10-29 · Status: Stable

Municipalities charge 0.25% a year on the registered value of land and buildings, value property at most every five years, and expect owners to file a value declaration at least every five years. Every lucrative activity also needs a municipal licence paid through a licence tax set by each canton's law, with suspension after two unpaid quarters and fines of three salarios base for operating without it. Companies also pay the national impuesto a las personas jurídicas in January.

USD figures use the Banco Central de Costa Rica reference selling rate of ₡454.82 per US dollar published for 29 October 2026 (indicator 318 on bccr.fi.cr), rounded to the cent. The salario base for 2026 is ₡462,200 (Circular 246-2025 of the Consejo Superior del Poder Judicial, under Ley 7337 art. 2).

Key facts

Municipal property tax rate	0.25 %Ley 7509 art. 23, as of 2026-10-29 · in force
Owner value declaration	At least every 5 years Ley 7509 art. 16, as of 2026-10-29 · in force
Exempt value of an individual's only home (45 salarios base, 2026)	20799000 CRCLey 7509 art. 4(e); Circular 246-2025, as of 2026-01-01 · in force
Fine for operating without a municipal licence (3 salarios base, 2026)	1386600 CRCCódigo Municipal art. 90 bis; Circular 246-2025, as of 2026-01-01 · in force
Deadline for the municipality to decide a licence	30 calendar daysCódigo Municipal art. 89, as of 2026-10-29 · in force

The rule

1. Municipalities levy a tax on land and fixed and permanent buildings and act as tax administration for it (art. 1 to 3). The rate is 0.25% of the value registered by the tax administration, nationwide (art. 23). Owners' homes that are their only property are exempt up to 45 salarios base, paying on the excess (art. 4(e)).
Example: A building registered at ₡150,000,000 pays ₡375,000 a year. / About US$824.50 on US$329,800.80.Ley 7509, Impuesto sobre Bienes Inmuebles, art. 1, art. 3, art. 4(e) and art. 23, 1997-12-15 official text · verified 2026-10-29

2. Owners must declare the value of their property to the municipality at least every five years (art. 16); if they do not, the municipality fines them an amount equal to the tax left unpaid and may value the property ex officio (art. 17). General or individual valuations take place once every five years (art. 10). Municipalities may give discounts for early payment up to the BCCR basic deposit rate (art. 25).Ley 7509, art. 10, art. 16, art. 17 and art. 25, 1997-12-15 official text · verified 2026-10-29

3. Any lucrative activity requires a municipal licence obtained by paying a licence tax, due for as long as the activity was carried on or the licence held; municipalities must decide within 30 calendar days, after which the applicant meeting the requirements may start (art. 88 and 89). The licence is suspended after two or more unpaid quarters, and operating without a licence is fined three salarios base (art. 90 bis). The tax base and rates are set by each municipality's own licence law.
Cost to do it: Fine for operating without a licence: three salarios base, ₡1,386,600 in 2026 (US$3,048.68).Ley 7794, Código Municipal, art. 88 as amended by Ley 10421, art. 88, art. 89 and art. 90 bis, 2023-11-14 official text · verified 2026-10-29

4. Free zone companies are exempt from municipal taxes and licences for ten years and from property tax and property transfer tax for ten years from the start of operations, paying for the municipal services they use (Ley 7210 art. 20(d) and (h)).Ley 7210, Ley de Régimen de Zonas Francas, art. 20(d) and (h), 1990-11-23 official text · verified 2026-10-29

Worked example

A company owning offices registered at ₡150,000,000 (US$329,800.80) pays ₡375,000 (US$824.50) of property tax a year to the municipality, plus the licence tax set by that canton's law on its activity.

Step by step

Apply for the municipal licence before opening, with land use and health permits.
File the property value declaration with the municipality at least every five years.
Pay property tax and licence tax by the municipal deadlines to avoid suspension.
Pay the impuesto a las personas jurídicas in January for each company.

Common traps

Licence tax is due while the licence is held even if the activity has stopped (art. 88); cancel the licence when closing.
Not filing the five year value declaration lets the municipality revalue and fine (Ley 7509 art. 17).
Licence tax bases and rates differ by canton, so moving offices changes the bill.

Sources

Related: Costa Rica country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide

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