Airbnb rentals in Costa Rica: new tax reporting rules and owner obligations
Renting out a villa or condo on Airbnb is the main reason many investors buy. Costa Rica has tightened oversight in recent years. Platforms now verify and report host data to the tax authority themselves, so an unregistered rental no longer goes unnoticed.
What changed
Under Ministry of Finance Resolution MH-DGT-RES-0025-2024, any digital platform that lists or processes payments for short-term rentals must verify host information and report it to the tax authority every year. Platforms are therefore asking owners to confirm personal and property details and cross-checking them against public records.
Previously, owners registered and declared taxes on their own, and many stayed outside the system. Now the data is reported by the platform directly.
Who is covered
Reporting applies to hosts who meet at least one condition:
- They reside in Costa Rica or another reportable jurisdiction.
- They rent out property located in Costa Rica.
- They receive payments in Costa Rica or a reportable jurisdiction.
Duties of a short-term rental owner
Law 9742 of 2019 on short-term tourist rentals regulates host registration and tax duties. In practice this means:
| Duty | What it involves |
|---|---|
| Tax registration | Registration as an accommodation provider with the tax authority |
| ICT registration | Entry in the short-term rental registry of the Costa Rican Tourism Institute |
| VAT on lodging | Value added tax on the stay price, often collected by platforms automatically |
| Income tax | Declaring rental income under the chosen tax regime |
| Municipal tax | Property tax paid by every owner regardless of renting |
Penalties
Failing to report can trigger a fine of 2% of the prior year's gross income, with a minimum of 3 and a maximum of 100 base salaries. If missing information is filed within 3 days after the deadline, the fine may be reduced by 75%. Back taxes and interest may follow.
Also check the rules of the specific community. Some HOAs restrict or prohibit short-term rentals, and you need to know that before buying.
How to factor this into your investment
Taxes and fees are no reason to fear renting, but they are a reason to calculate returns honestly: after tax, platform commission, management, cleaning and maintenance. We never guarantee rental returns because every location and project has different demand and management options.
Before you buy, we help verify community rules, connect you with a local management company and an independent tax advisor, and prepare transparent return scenarios. Investors from the USA and Canada receive the same turnkey support as our European clients.
General information only, not legal or tax advice. Consult a Costa Rican lawyer before deciding.