What are typical rental yields for Jacó vacation properties?

Gross rental yields in Jacó typically range from 5-8% annually, depending on property type, location, and management quality. Well-located condos in the $250,000–$400,000 range with professional management often achieve 6-7% gross yields, while premium beachfront properties can reach 8% or higher before expenses.

How much can I earn renting out a Jacó property?

A well-managed two-bedroom condo in Jacó generates $20,000–$35,000 in gross annual revenue. Beachfront units command $35,000–$45,000. One-bedroom condos average $12,000–$18,000, while three-bedroom units earn $22,000–$30,000 annually. These figures assume professional management and cover high season (December–April) plus shoulder season bookings.

Do I need a corporation to own property in Jacó?

No, foreigners can own property in their personal name with full fee simple title. However, many investors choose a Costa Rican corporation (Sociedad Anónima) for liability protection, estate planning benefits, and potential tax advantages. A local attorney can set up a corporation in 2–3 weeks for approximately $1,000–$1,500.

What licenses do I need to rent my Jacó property short-term?

You need a commercial tourism license (Licencia Comercial de Turismo) from the Costa Rica Tourism Board (ICT). Your property management company typically handles this process. You'll also need to register with the tax authority (Hacienda) for VAT (IVA) collection on rental income and obtain a municipal business license.

Which neighborhood in Jacó is best for rental investment?

North Jacó (near the main beach and town center) offers the highest occupancy potential due to walkability and beach access. South Jacó has newer developments with better ocean views and appeals to a more upscale demographic. Herradura, just 10 minutes away, attracts luxury buyers seeking Los Sueños resort amenities at lower price points.

What are the main risks of investing in Jacó real estate?

Key risks include: seasonal demand fluctuation (September–October are the slowest months), property management quality variation (impacts reviews and occupancy), HOA instability in older condo complexes, and title verification importance (always conduct thorough due diligence). Jacó's established market mitigates some risks present in newer destinations.

How much do closing costs add to my purchase in Jacó?

Closing costs in Costa Rica run 3–5% of the purchase price. This includes transfer tax (approximately 1.5%), legal and notary fees (1–1.5%), and registration fees. On a $300,000 condo, expect $9,000–$15,000 in closing costs above and beyond the purchase price.

Can I use my Jacó property for personal use while renting it?

Yes, most Jacó condo associations allow owner usage with reasonable notice requirements (typically 30–60 days annually). You can block personal use weeks during high season while renting the property during peak periods for income. Your property management company can coordinate this schedule to maximize both personal enjoyment and rental revenue.

Jacó Real Estate Guide for Vacation Rental Investors

Disclaimer: This guide is for informational purposes only and does not constitute legal or tax advice. Consult a qualified Costa Rican attorney or tax professional before making investment decisions.

Jacó sits 90 minutes from San José on Costa Rica’s Central Pacific coast, and it’s been drawing visitors since the 1970s. What started as a backpacker surf town has evolved into the most accessible and active vacation rental market in the country. For investors, that accessibility is the whole point: consistent demand from surfers, weekend escapees from the Central Valley, digital nomads staying months at a time, and international travelers seeking beach time without the remote-factor of Santa Teresa or Manuel Antonio.

This guide walks through what makes Jacó work as a rental investment, where to buy, what returns you can realistically expect, and the legal basics every foreign buyer needs to know. If you’re evaluating Jacó against other Costa Rica markets, start with our Costa Rica real estate investment overview. And for a deeper dive on the Jacó market specifically, see our complete Jacó market guide.

Why Jacó Works for Vacation Rental Investment

The numbers tell a clear story. Jacó consistently achieves higher occupancy rates than more remote Costa Rica beach destinations because it pulls from multiple demand sources simultaneously.

Proximity to San José drives weekend and short-stay bookings. Travelers can leave San José after work Friday and be on the beach by sunset. This 90-minute drive makes Jacó a weekend destination for Costa Rica’s urban population year-round, which stabilizes demand during slower periods.

Year-round surf creates consistent demand from a dedicated traveler segment. Jacó’s main beach break works in all conditions, unlike tide-dependent spots that limit optimal surf windows. Surfers book 3–7 nights at higher rates than average tourists because they’re chasing swells.

The digital nomad segment has exploded in Jacó since 2020. Reliable fiber internet, established coworking spaces, and long-stay apartment inventory mean these guests book 30–90 days at a time, providing income stability that offsets shorter vacation bookings.

Infrastructure maturity matters more than investors realize. Jacó has grocery stores, medical clinics, restaurants, car rental agencies, and ATMs. Properties don’t require the logistical gymnastics that remote destinations demand, which keeps management costs lower and guest satisfaction higher.

The trade-off is that Jacó isn’t a resort community. You’re buying into a working beach town, which means a more diverse guest mix, less manicured surroundings, and competition from hundreds of vacation rentals. Success here requires buying right and managing well.

Key Neighborhoods in the Jacó Area

North Jacó (El Centro)

The original Jacó. This is where the beach meets the town: restaurants, surf shops, and the main public beach access all converge here. North Jacó delivers the highest occupancy rates because guests can walk to everything without a car.

Properties here tend to be older condo buildings, some dating to the 1990s. Entry-level condos start around $100,000–$160,000 for one-bedroom units without ocean views. A well-maintained two-bedroom in a building with a pool and security runs $200,000–$350,000. The tradeoff for lower entry prices is more competition: dozens of similar units vie for the same guest segment.

South Jacó (Playa Hermosa Direction)

The growth corridor. Newer developments have popped up along the coastal road heading south toward Playa Hermosa, offering better ocean views, more modern finishes, and a quieter atmosphere than el centro.

Two-bedroom condos in newer buildings (built 2015 onward) range $300,000–$500,000. Ocean-view units command 20–30% premiums over inland-facing equivalents. South Jacó appeals to a slightly more upscale guest: families willing to trade walkability for space and views.

Herradura

Ten minutes north of Jacó, Herradura is where many investors find the sweet spot. This area sits adjacent to the Los Sueños Resort, giving guests access to resort amenities (marina, beach club, golf course) while typically costing 20–40% less than equivalent Los Sueños properties.

Condos in Herradura developments run $200,000–$400,000 for two-bedrooms. Single-family homes start around $350,000 and climb quickly for ocean-view properties. The Los Sueños association provides a built-in quality standard that benefits nearby properties: guests who can’t afford Los Sueños pricing still get access to its amenities through day passes.

Los Sueños Resort

The premium tier. Los Sueños is a gated resort community with a 200-slip marina, 18-hole golf course, private beach club, and 24-hour security. Properties here carry HOA premiums ($180–$800/month) but command the highest nightly rates in the area.

Condos inside Los Sueños start around $400,000 (resale units may start slightly lower) and climb to $1 million+ for beachfront villas. This is a collector’s market: buyers typically want the resort lifestyle as much as the rental income. If your priority is maximizing yield rather than lifestyle, Herradura or South Jacó often deliver better returns.

Expected Yields and Rental Income Projections

Real numbers from the Jacó market tell the most accurate story. Here’s what investors actually earn, broken down by property type.

Income by Property Type

Property Type	Price Range	Annual Gross Revenue	Gross Yield
1-bedroom condo (older)	$100,000–$160,000	$12,000–$18,000	8–12%
2-bedroom condo (mid-range)	$200,000–$350,000	$20,000–$35,000	7–10%
2-bedroom condo (beachfront/ocean view)	$350,000–$550,000	$30,000–$45,000	7–9%
3-bedroom townhome (South Jacó/Herradura)	$300,000–$500,000	$25,000–$38,000	7–8%
Luxury villa (Los Sueños/Herradura)	$600,000–$1,200,000	$40,000–$80,000	6–8%

These are gross figures. Your actual net returns depend on management fees, HOA costs, utilities, maintenance reserves, and vacancy assumptions.

Realistic Expense Assumptions

Factor these into your investment model:

Property management: 15–30% of gross revenue (Nest Stays uses performance-based pricing that aligns incentives)
HOA fees: $150–$800/month depending on development amenities
Property taxes: 0.25% of registered value annually (on a $300,000 condo, that’s $750/year)
Utilities (when rented): Typically covered by guest checkout fees or absorbed into management
Maintenance reserve: Budget 5–10% of revenue for furnishings, repairs, and turnover
Vacancy allowance: Assume 15–25% annual vacancy rate (higher in slow months, lower in high season)

A well-positioned $300,000 condo generating $28,000 gross annually typically nets $12,000–$16,000 after all expenses, depending on management quality and HOA costs. That’s a net yield of 4–5% after everything.

High Season Impact

December through April accounts for 50–60% of annual revenue in most Jacó properties. A two-bedroom that books for $150/night in peak season might drop to $80–$100/night in September. This seasonality is built into the gross revenue projections above, but it’s worth understanding: your cash flow will be heavily front-loaded.

Legal Basics: Property Ownership for Foreigners

Owning in Your Personal Name

Foreigners have the same constitutional property rights as Costa Rican citizens. You can hold fee simple (absolute) title in your personal name for any property outside the maritime zone (more on that below).

The process: find a property, sign an option agreement, conduct due diligence (30–45 days), and close at a notary public. Your name goes directly on the title at the National Registry. No special permits, no residency requirements, no extra paperwork compared to a Costa Rican buyer.

The caveat: your personal assets are fully exposed in any legal dispute involving the property. Most investors at the $200,000+ level structure ownership through a corporation for this reason.

Using a Costa Rican Corporation

A Sociedad Anónima (S.A.) is the most common legal vehicle for property ownership. Benefits include:

Liability protection: Your personal assets stay separate from property-related risks
Estate planning: Shares can be transferred to family members without property re-conveyance
Tax flexibility: Corporations have certain deductions unavailable to individuals
Privacy: Corporate ownership appears in public records rather than your personal information

Setting up an S.A. takes 2–3 weeks and costs approximately $1,000–$1,500 in legal fees. Your attorney handles everything: incorporation, registered agent, initial board meeting minutes, and title transfer into the corporate name.

Maritime Zone Restrictions

Properties within 200 meters of the high tide line fall into Costa Rica’s maritime zone and carry different ownership rules. You can acquire maritime zone concessions (leases) of up to 20 years, renewable, but cannot hold freehold title to the land itself.

Most Jacó-area vacation rentals sit well outside this zone. If you’re considering a beachfront property, verify the exact boundary with a surveyor before closing. Properties marketed as “beachfront” that fall inside the maritime zone come with legal complexity most investors should avoid.

Required Licenses for Short-Term Rentals

To legally rent your Jacó property on a short-term basis (less than 90 days), you need:

Commercial tourism license (Licencia Comercial de Turismo): Issued by the Costa Rica Tourism Board (ICT). Your property management company typically handles this application, which requires proving the property meets basic tourism accommodation standards.
Tax registration (Patente Municipal): Required by the local municipality. This authorizes commercial activity and triggers local business tax obligations.
VAT registration (Registro de IVA): All short-term rental income in Costa Rica is subject to 13% VAT (Impuesto al Valor Agregado). You must register with the tax authority (Hacienda) and either remit VAT monthly or include it in your nightly rates.

These licenses aren’t optional. Properties operating without them risk fines and closure. Professional property managers handle this compliance as part of their standard service.

Making the Numbers Work

The difference between a profitable Jacó investment and a disappointment usually comes down to three factors.

Purchase price discipline. The Jacó market has seen significant development since 2015. Newer condos in modern buildings hold value better, but don’t overpay for “preconstruction appreciation” that may never materialize. Focus on cash-flow-positive properties in established buildings.

Management quality. The difference between amateur listing and professional management often represents 20–30% more revenue annually. Professional managers optimize pricing across Booking.com, Airbnb, and Vrbo simultaneously, maintain SuperHost status (which unlocks algorithmic priority), and handle guest communication that leads to 5-star reviews. Those reviews drive the bookings that justify premium pricing.

Active owner involvement or hands-off management, not in-between. You either manage the property yourself (handling bookings, guest issues, cleaners, maintenance) or you hire full-service management. The worst outcome is paying management fees while still handling guest problems yourself. Decide your level of involvement upfront and price accordingly.

For more detail on evaluating properties and projecting returns, see our guide to foreigners buying property in Costa Rica. And for a complete picture of tax obligations on rental income, review our Costa Rica rental income tax guide.

The Bottom Line

Jacó offers the strongest combination of accessibility, demand diversity, and entry-level pricing in Costa Rica’s vacation rental market. You’re not buying a speculative play on unknown territory: the market is proven, the infrastructure exists, and the demand drivers are well-understood.

The returns won’t make you rich overnight. Expect 4–6% net yields after all expenses, with upside from appreciation that historically tracks 3–5% annually in good years. Your primary return is income, not capital gains.

Buy in a good location (North Jacó for occupancy, Herradura for yield-to-price ratio, Los Sueños for resort lifestyle), structure ownership appropriately with a local attorney’s guidance, and hire professional management that earns its fees through revenue optimization and guest experience.

Jacó isn’t the prettiest beach town in Costa Rica. But for rental investors who want a functioning market with real cash-flow data and proven demand, it’s the most practical place to start.