Airbnb and other short-term rental platforms have grown exponentially in Costa Rica. In 2023, the country received more than 2.5 million tourists, and projections for 2025 are even more ambitious.
According to Fitch Solutions (BMI), Costa Rica is expected to receive 3.7 million tourists in 2025, representing a 27.6% growth compared to 2024. Meanwhile, the Costa Rican Tourism Board (ICT) projects a more conservative scenario of 2.66 to 2.87 million, with a moderate increase of 2% to 4%.
This growth makes short-term rentals a highly attractive investment opportunity. However, to avoid fines (which can exceed $25,000) and potential administrative closures, strict compliance with local regulations is essential.
Legal requirements
Registration with ICT
Mandatory under Law 7910. You must register as a non-traditional lodging service provider to operate legally.
Tax registration (DGT)
Property owners must register as taxpayers, submit monthly VAT returns (13%), and pay annual income tax (10% to 25%, depending on net profits). Many mistakenly believe Airbnb manages everything, but in Costa Rica, local compliance is still required.
New additional tax starting in 2026
By late 2026, owners renting through platforms such as Airbnb or Booking will be required to pay an additional 12.75% tax on gross income, according to the Costa Rican Tax Authority (DGT). This measure aims to strengthen tax fairness and will be implemented using data shared by digital platforms, thanks to agreements with the OECD. Authorities have urged hosts to register formally as taxpayers to avoid future penalties.
Electronic invoicing
All stays must be invoiced through Costa Rica’s electronic system, clearly detailing the 13% VAT.
Accessibility compliance (Law No. 7600)
Properties must meet minimum accessibility standards for people with disabilities.
Health and safety permits
The Ministry of Health requires basic sanitary permits, especially if food or common areas are offered.
Condominium and municipal regulations
Many condominiums prohibit or restrict short-term rentals. When allowed, they often require formal approval, liability insurance, emergency protocols, and guest registration. In some cantons, a municipal business license (patente municipal) is also required.
Market context
- Average nightly rate in areas like Tamarindo or Manuel Antonio: $150–$350, depending on season.
- Occupancy: 60–80%, peaking in high season (Dec–Apr).
- Estimated annual ROI: 8–12%, higher than long-term rentals.
Pros and cons
Pros:
- High profitability during peak season.
- Flexibility for personal use.
- Strong projected tourism growth (up to 3.7 million visitors in 2025).
Cons:
- Complex and constantly evolving regulations.
- Potential conflicts with neighbors and homeowners’ associations.
- Additional costs for maintenance, cleaning, management, and legal compliance.
Airbnb can be an excellent opportunity in Costa Rica — if done right. Failing to comply with local regulations can result in fines, closures, and even criminal liability.
At Magma Legal, we support you throughout the entire process: ICT registration, tax compliance, condominium negotiations, municipal permits, and ongoing legal monitoring. This way, you can focus on welcoming your guests and maximizing your investment.
Contact us to structure your Airbnb safely and legally.