Short answer: if you own property in Costa Rica, you must declare its value to the municipality of the canton where it is located at least once every five years. This is the declaración de bienes inmuebles required by Article 16 of Law 7509 on Property Tax (Ley del Impuesto sobre Bienes Inmuebles), with some exceptions for property that is not subject to the tax. It is filed with the local municipality, not with the national tax authority (Ministerio de Hacienda), and the law states that it is not a sworn declaration. If you skip it, the municipality can value your property on its own and charge a penalty equal to the difference in tax left unpaid.
This guide walks through what the law and its current regulations (Executive Decree 44414-H, published in April 2024, which replaced the former Decree 27601-H) actually say, what the form asks for and when a professional appraisal is worth having before you file.
What is the property value declaration?
It is a form where you tell your municipality what you estimate your property is worth, with the land and the buildings valued separately. The municipality uses that information to keep its registered value current, and that registered value is the base for the annual property tax of 0.25% per year (Article 23 of Law 7509).
Three points from the law that surprise many owners:
- It is a municipal filing. Article 3 makes each municipality the tax administration for this tax: it values properties, bills, collects and hands out the declaration form.
- It is not sworn. The same Article 3 says the owner’s declaration “will not have the character of a sworn declaration” and that the municipality must accept it.
- Where does Hacienda fit in? The Ministry of Finance takes part only through its Technical Standards Body (Órgano de Normalización Técnica, Article 12), which gives municipalities the technical criteria: building values by construction type, land valuation methods and depreciation rates. The filing and the tax bill stay with the municipality. (If what you need is a filing with the Ministry of Finance, that is a different process: see tax declaration of assets and the role of an appraisal.)
Who has to file?
The obligation falls on the taxpayers defined in Article 6 of the law, which include:
- Owners with title registered in the National Registry (Registro Nacional).
- Owners of unregistered land and possessors of more than one year, under the conditions the law lists.
- Concession holders or occupants in the maritime terrestrial zone or the border strip, but only for the buildings (the land itself pays a concession fee, or canon).
Situations that come up often with foreign owners:
- Property held through a corporation. If the title is in the name of a Costa Rican company (sociedad), the company is the owner that files. Municipalities usually ask for current proof of the company’s legal representation (personería jurídica).
- You live abroad. The regulations allow another person to file on the owner’s behalf, adding their own details to the form (Article 61). In practice, municipalities usually ask for the owner’s authorization authenticated by a lawyer or notary, so confirm the requirement with yours. Your attorney or a trusted representative in Costa Rica can usually handle it.
- Your home is your only property. The law exempts a sole property owned by an individual up to the equivalent of 45 base salaries (Article 4, item e), and tax is paid on any value above that. The benefit is not automatic: under the regulations (Article 34), you request it from the municipality every year with a sworn statement. The same regulations (Article 60) say owners of non-taxable property do not have to file the value declaration unless the exemption applies only in part. Because this benefit has a cap, ask your municipality whether you still need to file.
- Shared ownership. Each co-owner pays in proportion to their share (Article 7). Under the regulations (Article 62), each co-owner files a declaration, separately or jointly with the others, stating the value of the whole property (all the land and buildings), not just their share. If the co-owners disagree on the value, the municipality carries out an appraisal.
- Estates and trusts. If the owner has died, the executor accredited in the probate proceeding can file (Article 63 of the regulations); for property held in trust, the trustee files (Article 64).
How often do you need to file?
The law says “at least every five years”, and the regulations (Article 58) confirm you can file a new declaration before that period ends if you wish, for example after building or remodeling. Each municipality sets its own schedule and filing campaigns, so the simplest step is to ask the municipal service counter when your last declaration was filed.
Some events also update the registered value automatically, without you filing anything (Article 14 of the law). Note that, under the regulations (Article 44), an automatic update does not release you from filing the declaration every five years. The events are:
- A higher price stated in the deed when the property is sold or transferred.
- A mortgage registered for more than the current registered value.
- Subdividing the property, merging parcels or correcting its registered area.
- Improvements built with a construction permit that equal 20% or more of the registered value.
- A higher value that the owner acknowledges in their own declaration.
What information does the form ask for?
Each municipality provides its form and instructions on paper or electronically (Article 59 of the regulations): at the service counter or, in some cantons, online with a digital signature. The mandatory content set by Article 61 of the regulations is the same nationwide:
- Owner identification: name, ID number and current address (plus the details of whoever files, if it is a representative).
- Property details: property number (número de finca), current use, exact location, current area, the registered survey plan number (plano catastrado) if there is one, and access to basic services.
- A description of the existing buildings, with the features you know.
- The value of the land and the value of the buildings, separately.
- A place or channel for receiving notices.
The regulations state that missing technical valuation details do not invalidate the declaration, because it is a proposed value. If you ask, the municipality must help you complete the technical parts of the form (Article 65). As supporting documents, some municipalities ask for a copy of your ID (or the company’s personería jurídica), the survey plan or the deed. Forms are in Spanish, so it helps to have your lawyer or a bilingual representative review them. Confirm the exact list with your municipality before you go.
What value should you declare?
You declare the value you estimate for your property. The law does not require you to attach an appraisal, but the figure matters:
- It becomes the tax base. Under Article 16, the declared value becomes the base for the tax if the municipality does not correct it within the following tax period.
- The municipality checks it. Under the regulations, it compares your figure with an estimate made with the Technical Standards Body’s valuation tools (Article 67). If it does not accept it, it can ask you to correct it within 10 business days and, failing that, it carries out an appraisal of the property (Article 68). If it does not review your figure within the year after you file, the declared value is recorded as the new base (Article 69).
- If it changes the value, it must explain why. The notice must detail the property’s features and the factors or models used, with land and buildings broken down (Article 16 of the law).
- Declaring too low rarely works. A figure far below what those tools produce will probably end up in a municipal appraisal.
- Declaring too high costs you. An inflated value means a higher tax bill every year.
If the land is used for crop or livestock production, special valuation rules apply (Law 9071 and its regulations), with their own form. Ask your municipality how to use them.
Municipal value and market value are different things
The value on municipal records follows its own technical rules and can sit above or below what a buyer would pay today. We explain why in the difference between cadastral value and market value.
What happens if you don’t file?
Article 17 of Law 7509 is clear: if the owner has not filed, the municipality will charge a penalty equal to the tax left unpaid and may value the property on its own. That valuation can be based on the area registered in the National Registry and the value of the homogeneous zone where the property sits, in other words, with general data for the area rather than necessarily the specific features of your property.
Under the regulations, the penalty can only be charged once that municipal appraisal is final, and through a procedure where you can present your defense (Article 77). If you file late but the municipality accepts your value, no penalty applies.
So even though the declaration is not sworn, letting it lapse usually costs more than filing a well-supported value.
What if the municipality assigns a value you disagree with?
The law provides a formal route. When the municipality carries out a general or individual valuation and you do not accept the amount, you have 15 business days from notification to file a request for reconsideration (recurso de revocatoria) with the valuation office; after that you can appeal to the municipal council and then to the Administrative Tax Court (Tribunal Fiscal Administrativo) (Article 19). Until the Court rules, the municipality keeps billing on the previous valuation.
We cover each step in how to appeal a municipal property valuation in Costa Rica. The appeal is signed by the owner or their legal representative, so work with a Costa Rican attorney; the appraiser’s role is to provide the technical report.
When is a professional appraisal worth it before filing?
For a typical home in a neighborhood with plenty of comparable sales, many owners file on their own. An appraisal makes more sense when:
- The property is unusual: a rural farm, a steep lot, an older house, a home with additions or a mixed use.
- Several owners want to declare consistent figures.
- You received a municipal valuation that looks high and want to know whether there is a technical basis to question it.
- You plan to sell, pass the property on to heirs or reorganize your holdings, and want a current value from the same report.
Law 7509 itself defines an appraisal as the set of calculations and reasoning that determines a property’s value, prepared by a professional who belongs to the Association of Agronomist Engineers (Colegio de Ingenieros Agrónomos) or the Federated Association of Engineers and Architects (CFIA), stated in Costa Rican colones and as of a specific date (Article 10 bis).
At Díaz Peritajes, a firm with several appraisers founded by Ing. José Alberto Díaz Vidaurre (CFIA member since 1982, license ICO-3075), we prepare tax appraisals and real estate appraisals with land and buildings broken down, photographs and a clear methodology, delivered as a digitally signed report. The report does not guarantee that the municipality will change its value: it is technical support for your decision. For tax or legal questions, talk to your accountant or attorney.
Frequently asked questions
Is the property value declaration a sworn statement? No. Article 3 of Law 7509 says so expressly. The municipality can still review and correct the declared value.
Do I file it with Hacienda? No. You file it with the municipality of the canton where the property is located. Hacienda, through its Technical Standards Body, only sets the technical valuation criteria.
I own properties in two cantons. How many declarations do I file? One with each municipality, because each one administers the tax for the properties in its territory.
Can I use the appraisal my bank ordered? It can serve as a reference if it is recent, but the value you declare is your decision, and the municipality will review it under its own criteria.
Is the municipal value connected to the transfer tax? The law provides that municipal values are used to update the records of the national tax administration (Dirección General de Tributación) for the property transfer tax (Article 34). For any purchase or sale, ask your notary.
How much does an appraisal for this cost? From approximately USD 300 (₡150,000); the final price is set in the quote based on the type of property and its location. More detail in how much an appraisal costs in Costa Rica.
Need to file with solid technical support?
If your declaration is due, or you received a municipal value that doesn’t add up, message us on WhatsApp at +506 7272-7270 with the property’s location and, if you have it, the municipal notice. We reply with a quote in less than 24 hours, in English or Spanish. We cover all 7 provinces from our offices in Pérez Zeledón and Curridabat.