Tax Entities in Real Estate
- Natural Person, Cedula/Passport ID, Tribunal Electoral, 8NT Tax ID
- Juridical, Folio Number, Public Registry, Folio Number
- Finca or Property, Folio or Finca ID, Public Registry, Folio Real Number
In article 766-A of the Codigo Fiscal, a progressive tax was applied to real property in the following scale:
- 0.00% from $0 to $30,000.
- 0.60% from $30,000 to $250,000
- 0.80% from $250,000 to $500,000
- 1.00% from $500,000 to infinity.
If you’re in the market for a beachfront house, don’t fret at these taxes! There is an exclusion for primary residences up to $120,000, and may scale in the future due to inflation. This is called the Patrimonio Familiar Tributario. Secondary properties or investment properties will rather apply the rates above.
The PFT also puts you into a unique tax scale:
- 0.00% from $0 to 120,000
- 0.50% from $120,000 to $700,000
- 0.70% from $700,000 to infinity.
For reference, there is an older & somewhat harsh progressive tax rate that applied before article 766-A was put in place in 2009. This scale will only apply if a property owes taxes before that year, such as if you bought an older property at a real estate auction.
It looked like this:
- 0.00% from $0 to $30,000
- 1.75% from $30,000 to $50,000
- 1.95% from $50,000 to $75,000
- 2.10% from $75,000 to $120,000
