Short answer: if your municipality notifies you of a new value for your property and you disagree, Costa Rica’s property tax law (Law 7509) gives you 15 business days from the notification to file a reconsideration appeal (recurso de revocatoria) with the municipal valuation office. If it is rejected, you can appeal to the municipal council (concejo municipal) within the next 15 business days and then take the case to the Tax Administrative Court (Tribunal Fiscal Administrativo) within another 15 business days. Until the Court rules, the tax keeps being billed on the previous valuation. An independent appraisal gives your appeal technical support, but it does not guarantee the outcome: the municipality or the Court makes the decision.
This guide walks you through each stage, when an appeal is worth it, and what the technical report should cover. It is written with foreign owners in mind, who often receive these notices in Spanish and from abroad.
Who values your property for property tax
Costa Rica’s property tax (impuesto sobre bienes inmuebles) is a municipal tax, not a national one collected by Hacienda. Under Law 7509 (amended by Law 7729 of 1997, among others), each municipality acts as the tax authority: it values properties, issues the bills and collects. The Ministry of Finance takes part through its Technical Standards Body (Órgano de Normalización Técnica, ONT), attached to that ministry and a mandatory advisor to the municipalities (art. 12), which sets the technical criteria, such as the base values for each construction type and the land value maps by homogeneous zones.
Key points from the law:
- Rate: the tax is 0.25% per year of the value registered with the municipality (art. 23).
- Tax base: the value on record as of January 1 of each year (art. 9).
- Declaration every five years: every owner must declare the value of the property to the municipality at least every five years (art. 16). The declaration is not a sworn statement (art. 3). We cover it in detail in our guide to the property value declaration every 5 years.
- If you do not declare: the municipality can impose a fine equal to the unpaid difference and value the property on its own (art. 17).
If you are wondering why the municipal figure rarely matches what your home would sell for, read our guide on cadastral value vs. market value.
When you can challenge the municipal valuation
The appeal under article 19 applies when the municipality carries out a general or individual valuation and you do not accept the value assigned. Typical situations:
- The municipality ran a general valuation of your district and notified you of a new value.
- You did not file your declaration on time and the municipality valued the property on its own.
- The municipality adjusted the value you declared.
The law requires the notice to describe the property and the factors or models used, with the land and building amounts broken down separately where applicable (art. 16). That breakdown is your starting point: it shows what data the municipality used and where the difference may lie.
Some changes work differently. The law also provides for automatic adjustments (art. 14), for example when a transfer deed states a higher price or when a mortgage is registered for more than the value on record. If that is your situation, ask your attorney which route applies.
The appeal deadlines, step by step
These are the deadlines set by article 19 of Law 7509, according to the current text published in Costa Rica’s official legal database (SCIJ), checked in October 2026:
1. Reconsideration appeal with the valuation office
- Deadline to file: 15 business days from the notification of the valuation.
- Where: the municipality’s valuation office (oficina de valoraciones). By law it must be headed by a trained professional who is a member of the relevant professional association.
- Deadline to decide: the office has up to 15 business days.
These are business days, not calendar days, so in practice you have roughly three weeks. That is not much time if you still need a technical report, so act as soon as the notice arrives.
2. Appeal to the municipal council
If the valuation office rejects your reconsideration appeal, you can file an appeal with the municipal council within 15 business days of being notified of the office’s decision.
3. Challenge before the Tax Administrative Court
If the council also sides with the municipality, you can challenge its decision before the Tax Administrative Court within 15 business days, under the Code of Tax Rules and Procedures. The law gives the Court a maximum of four months to rule, counted from the filing date.
That ruling closes the administrative stage. After it, the case can still go to the contentious-administrative courts, where you will need legal counsel.
What happens to your tax bill in the meantime
Until the Tax Administrative Court rules on the merits, the previous valuation still applies and you are billed on it (art. 19). Once a value change is final at the administrative level, it takes effect on January 1 of the year after it was notified (art. 21).
What an independent appraisal adds
An appeal based only on “the value seems too high” has little to stand on. What gives it weight is technical evidence: an appraisal that explains, with verifiable data, what the property is worth and why that differs from the municipal figure.
Law 7509 itself defines an appraisal as the set of calculations, reasoning and procedures used to determine a property’s value according to its use, and requires it to be prepared by a professional who belongs to the Association of Agronomist Engineers or the Federated Association of Engineers and Architects (CFIA), with extensive experience in the field (art. 10 bis).
A report built for this purpose usually includes:
- Land and building values shown separately, so they can be compared line by line with the municipal breakdown.
- A measurement of the actual built area, which sometimes differs from the area on record.
- Construction type, age and condition, with the corresponding depreciation.
- Site conditions that affect value: slope, shape, frontage, access, easements or protected zones.
- Market comparables from the area and the method used.
- Photos and a valuation date, with the report digitally signed by the appraiser.
At Díaz Peritajes we prepare these reports as part of our tax appraisal services. We are a firm with several appraisers, founded by Ing. José Alberto Díaz Vidaurre (a CFIA member since 1982), with offices in Pérez Zeledón and Curridabat and coverage in all seven provinces.
Who does what: the appraiser provides the technical report. The appeal itself is written and signed by the owner or their attorney, who knows the formal requirements of the filing. We do not provide legal or tax advice.
When an appeal is worth it (and when it is not)
Before ordering an appraisal, run two quick checks:
- Is the municipal value above market value? If the municipality valued your property below what it is worth, an independent appraisal will likely confirm the same or a higher figure, and an appeal makes no sense.
- How much tax is at stake? At 0.25% a year, a difference of ₡20 million in value means about ₡50,000 a year in tax. Weigh that against the cost of the appraisal (from approximately USD 300, or ₡150,000; the final price is set in the quote) and the number of years the value will apply.
Appeals tend to make more sense when the gap is large or the data has an obvious error: a built area larger than the real one, a construction type that does not match the house, the wrong age, or land with limitations the valuation ignored.
If your land is used for farming or livestock, also ask your municipality about Law 9071, which sets special valuation rules for farmland based on land use and production.
Practical tips for owners living abroad
- Keep your notification address current with the municipality, since the 15-business-day clock starts at notification. If you have not designated a place within the canton, the law allows the municipality to notify you by other means (art. 17). If you spend part of the year outside Costa Rica, consider having your attorney or a trusted person follow your property’s mail.
- Write down the notification date and count the 15 business days from day one.
- Ask for the valuation file or the full breakdown if the notice is unclear.
- Order the independent appraisal right away. We answer quote requests in less than 24 hours and, when time is short, offer an urgent 48 to 72-hour service, with a surcharge.
- Work with a Costa Rican attorney to draft the appeal and confirm the exact deadlines.
- File your five-year declaration on time going forward: backing the declared value with a real estate appraisal helps you avoid valuations made by the municipality on its own.
Frequently asked questions
How long do I have to challenge the municipal valuation?
Fifteen business days from the notification to file the reconsideration appeal with the valuation office (Law 7509, art. 19). File within that window, and ask your attorney about the consequences of missing it.
Will an independent appraisal guarantee a lower tax?
No. It is technical evidence that supports your appeal. The decision belongs to the valuation office, the municipal council or the Tax Administrative Court, depending on the stage.
Do I have to keep paying while the appeal is pending?
Yes. Until the Tax Administrative Court rules on the merits, the tax is billed on the previous valuation (art. 19).
Can the appraiser file the appeal for me?
No. The appraiser delivers the technical report. The appeal is filed and signed by the owner or their attorney.
Is property tax handled by Hacienda?
No. The municipality where the property is located administers it. Hacienda, through the Technical Standards Body, sets the technical valuation criteria.
Received a municipal valuation notice?
Do not let the deadline run. Message us on WhatsApp at +506 7272-7270 with the notice and the property details (property registry number, or número de finca, or cadastral plan). We will send you a quote in less than 24 hours for a technical appraisal that you or your attorney can submit with the appeal.