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Last week's AM Costa Rica pointed to one guy's 500% increase in real estate taxes under the new valuation method used by CR property assessors. http://www.amcostarica.com/thursday.htm

The property in the article is on Playa Matapalo, the Matapalo near Quepos. I know the house, it looks like a castle but it's really not at all, in fact medium small. Parcels on that beach receive little amenities from the state/canton of Aguirre. Matapalo, though 25 minutes from built up Quepos/Manuel Antonio, is still old CR. And that's an appeal to me--incrediblly long beach, 99% undeveloped beach/maritime zome with a mui bravo surf. But those kind of taxes with no services, like police or fire or really anything, (you are on your own in that beach town) until 5 hour to 2 days? . This year, this Canuck who bought the property 20 years ago, got the permits, and then built his house--not easy unless you have the patience of Jobe--his RE taxes went from $700 per annum to $4300.

I forget whose CRT member's moniker is rent, don't own, but it makes alot more sense now. Many more availables will be on the market as a result of CR's new assessment approach, inmposed on an already severely depressed RE market.. And then there's the luxury tax for the gringo's or euro's who built the mansions ten years ago when things were sweet in the US/CA market, figuring it would parlay into CR. Now these developers, most of whom thought thhey could build and then flip for big $ are flipping themselves.

Just look around when you are driving along Rt 34 from the Autopista del Sol all the way S to Jaco and to further beach towns, or check on line for the fire sale multiple real estate listings. You'll see a bunch of beautiful fire sales or half completed big projects. EG, see those unfinished high rise 1/8 finished skeletons that were to be condo's on the road into Jaco? They will be there unfinished forever or foreseable. A similar display to be seen in most of the beach towns. Many thought ten years ago our RE explosion would never end in the US, so it would be the same in CR, both propostions that have left many developers and buyers in both countries "underwater. " Downtown high rise condo's on Paseo Colon sold out. Go figure. My guess is a condo owner can handle the new RE tax, a mansion owner is going to have to be loaded.

Somebody will write a book on how many smart people lost their ass in CR new construction real estate in the past 15 years.

You have to remember that property is on a concession and is not fee simple title. The Municipality can and do change the rules on concession property to what ever they want to make more money.

I am sure the mayor just needed a new Mercedes as his two year old one was getting old. Nothing new here, just the same old CR.

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You really think this is a local pol's shakedown of a maritime concessionaire who jacked this 20 year property owner from Canada from $700 to $4500 per annum, all for his petty cash fund, or jacked him on a whim for the benefit of the municipalidad of Aguirre?

Maritime concessions are not granted on a per annum basis like campground or picnic permits in the forest preserve back home, otherwise CR concessionaires would be parking motor homes or erecting sturdy tents on them. This guy built this house years ago and was taxed $700 per until now.

How about the nearby B&B in the same article which was out of the maritime who's taxes went to $7k (and I know that place too, and if that assessment sticks, it'll be shuttered in no time). Matapalo is a rather desolate place where only a few Norte Americanos and Euros go, appeals to those who really don't care much if the lodging is minus 1 star, as long as there's a bed and a shower, that's good enuf. Their desire is the rarer and rarer unspoiled CR beach, endless in length, with a raging surf. It is something to walk, and Quepos for whatever else you want is only 20 minutes away by car.

This crazy over evaluation of real estate is going on all over CR, assessment period by assessment period.

The basis of CR property assessments this year and hence forth are based on a completely different valuation method then previously used to determine taxable values, and has been widely reported in all of the gringo papers.

I've read them, but the new formula is too complex to the average reader including me. However, there are guys on this board that can explain the diff between the old and the new assessment principles, so I defer to them, and I hope they contribute.

Let the dancing begin.

I know personally five or six Americans that have bought property in C/R - 100% of them lost 50% of the value in the past several years. FAR cheaper to rent from what I've heard. A buddy is a renting a 2 bd condo, golf cart, SUV and 1/2 share of a boat $1000 a month - 12 month lease and that's at Suenos.