Costa Rica Vacation Rental Tax Guide 2026

You just got your first Airbnb booking in Jacó. Hacienda already knows about it. Starting at the end of 2026, Airbnb will withhold 12.75% of your payout and send it straight to Costa Rica’s tax authority before the money ever reaches you. Here’s what you actually owe.

This is not tax advice. Tax regulations change frequently. Consult a qualified Costa Rica tax professional before making financial decisions.

Last verified: April 2026. Tax regulations in Costa Rica change frequently; verify current rates and rules with a local accountant before making financial decisions.

The 13% IVA on Vacation Rentals

Costa Rica’s value-added tax, known locally as IVA (Impuesto sobre el Valor Agregado), applies at a standard rate of 13% on most short-term rental services. If you are renting out your property for stays under 30 days, your rental activity is classified as a taxable service.

What this means in practice: the 13% is passed on to guests as part of the rental price. You collect it, then remit it to the Tax Authority (Dirección General de Tributación, or DGT). You do not keep it as income, and you cannot treat it as revenue.

Airbnb has been applying and remitting 13% IVA on its service fees in Costa Rica since 2022, which means guests who book through Airbnb already see this tax embedded in the transaction. As an owner, you are responsible for the IVA on the rental income you receive from guests, not the platform fee portion.

The Real Estate Capital Gains Tax and the 12.75% Rate

Beyond IVA, Costa Rica taxes rental income through its Real Estate Capital Gains Tax regime. This tax has been on the books since 2019, but compliance has been spotty, particularly among owners who listed properties on platforms without registering as taxpayers. That changes in 2026.

Here is how it works. The tax applies a 15% rate on net rental profit, but the law allows a flat 15% deduction for expenses, effectively reducing the rate to 12.75% of your gross rental income. You report this through the real estate capital income return on a regular schedule.

The key point: this tax applies to rental income from short-term stays (under 30 days), not long-term leases. If your tenant signs a lease for 30 days or more, the treatment is different. For vacation rentals marketed to tourists, the 12.75% applies.

What Is Changing in 2026: Platform Reporting and Withholding

The biggest shift for 2026 is not a new tax. It is a new enforcement mechanism for an existing one.

Costa Rica’s DGT has announced that by the end of 2026, digital platforms including Airbnb, Vrbo, and Booking.com will be required to withhold 12.75% directly from host payouts and remit it to the tax authority. This is a result of Costa Rica’s participation in the OECD global tax transparency framework, which obligates platforms to share host-level data (names, income, property details) with participating governments.

In practical terms, this means the government will no longer rely on owners to voluntarily declare rental income. The platform handles the withholding at source, whether or not you have registered as a taxpayer. If you are not registered as a taxpayer, the withholding still happens, and you will need to reconcile it through filings.

The Finance Ministry has characterized this move as a matter of tax fairness, bringing short-term rental operators in line with other commercial lodging providers like hotels.

If you rent a few weeks per year, the platform will still withhold 12.75% of gross revenue even if your actual profit is lower or negative. That is worth understanding before you factor it into your pricing.

Income Tax Brackets for Rental Income

How much income tax you owe depends on whether you operate as an individual or through a corporation, and how much you earn.

Income tax bracket figures below are sourced from BDO Costa Rica’s official December 2025 publication on 2026 tax brackets.

For individuals with business activities (sole proprietors, which is how many individual property owners report rental income), the 2026 brackets are:

Annual taxable income (CRC)	Tax rate
Up to ¢6,244,000 (~$11,700)	Exempt
¢6,244,001 – ¢8,329,000	10%
¢8,329,001 – ¢10,414,000	15%
¢10,414,001 – ¢20,872,000	20%
Over ¢20,872,000	25%

For legal entities (corporations), the rates are:

Annual net income (CRC)	Tax rate
Up to ¢5,621,000	5%
¢5,621,001 – ¢8,433,000	10%
¢8,433,001 – ¢11,243,000	15%
Over ¢11,243,000	20%

The ¢ symbol is the colón, Costa Rica’s currency. Exchange rates fluctuate, so use a current rate when converting to USD.

The Real Estate Capital Gains Tax (12.75% on gross) operates separately from these general income tax brackets, and the two regimes can overlap depending on how your rental activity is structured. A tax professional can help you determine which regime applies and whether registering under the standard income tax system makes sense for your situation.

Corporation Structures: SA and SRL

Many foreign property owners in Costa Rica hold their real estate through a Costa Rican corporation, most commonly a Sociedad Anónima (SA) or a Sociedad de Responsabilidad Limitada (SRL). There is no legal requirement to use a corporation to own property, but there are practical reasons owners choose this structure.

An SA is an anonymous partnership with capital divided into shares. An SRL is a limited liability company with a smaller group of partners. Both provide a layer of liability protection and can simplify estate planning, particularly for owners who want to bring in family members or partners.

The main difference for tax purposes is how income flows through to the owners and which corporate tax rules apply. An SA may have different filing requirements than an SRL, and distributions to shareholders are treated differently than income drawn directly from a sole proprietorship.

Holding property through a corporation does not exempt you from the rental income taxes described above. It may, however, affect how those taxes are calculated, reported, and paid. Do not assume that incorporating is a tax dodge, and do not assume it creates one. A Costa Rica accountant familiar with real estate can walk you through the specifics for your situation.

For more on owning property in Costa Rica as a foreigner, see our guide to buying property in Costa Rica as a foreigner.

Municipal Permits and Operating Licenses

Every vacation rental property in Costa Rica also needs to comply with local (municipal) regulations. This is an area where many owners are under-compliant, and it is one of the first things enforcement agencies check.

The municipal operating permit (patente comercial) is effectively your business license to operate a rental. It confirms that your property meets zoning requirements and is authorized for short-term rental use at your specific address. Annual costs range from roughly $200 to $800 depending on the municipality and property type.

In addition, most municipalities require a zoning compliance certificate (uso de suelo) confirming that short-term rentals are permitted at your property location. This is critical because some zones are exclusively residential and prohibit commercial rental activity. If your property is in a zone where rentals are not allowed, no amount of national tax compliance fixes that problem.

Some municipalities also require a health and safety inspection and fire department approval before issuing the operating permit.

ICT Registration

The Costa Rican Tourism Institute (ICT) requires registration for all properties offering tourist lodging for under 30 days. This registration must be completed through ICT’s electronic platform and renewed annually. First-time registration fees are around $200, with annual renewals ranging from $100 to $500 depending on property size.

ICT registration is separate from tax registration. You can be registered with ICT and still be out of compliance with the DGT, and vice versa. Both are required.

Municipal Income Tax

On top of national taxes, property owners with rental income may owe a municipal tax. Rates and rules vary by municipality, and the tax is typically calculated on gross rental income rather than net profit. The specific rate depends on where your property is located. Contact your local municipality to find out the applicable rate and filing requirements for your area.

What You Should Do Now

Given the 2026 enforcement timeline, there are concrete steps you can take before the platform reporting goes live.

Register as a taxpayer with the DGT. If you have not done this already, do it now. You can register through the DGT’s online portal (ATV or the MHIF platform). Filing as a taxpayer means you are in the system when the platform data starts flowing in.

Get your ICT registration current. If your property is not registered with the ICT, fix that now. First-time registration takes some paperwork, and you do not want to be rushing it once enforcement is active.

Check your municipal status. Contact the municipality where your property is located and confirm you have the correct operating permit and zoning clearance for short-term rentals.

Talk to a Costa Rica accountant. A local accountant who works with property owners can review your current structure, confirm which tax regime applies, and make sure you are filing correctly. This is especially important if you have been operating informally and need to get current.

Review your owner agreement with your property manager. If you use a management company, your contract should address who is responsible for collecting and remitting taxes, issuing electronic invoices to guests, and filing returns. A property manager typically handles these obligations on your behalf. Review your contract to confirm what’s included. Learn more about getting started with Nest Stays.

Summary of Costa Rica Vacation Rental Tax Obligations

Tax / Requirement	Rate / What to Know
IVA (VAT) on rental services	13% charged to guests; collected and remitted by owner
Real Estate Capital Gains Tax	12.75% of gross rental income (short-term stays under 30 days); withheld by platform starting end of 2026
Individual income tax brackets	Progressive rates from 0% to 25% depending on income level
Corporate income tax (SA/SRL)	Progressive rates from 5% to 20% depending on income level
ICT registration	Required; ~$200 first registration, $100-500 annual renewal
Municipal operating permit	Required; varies by municipality, ~$200-800/year
Municipal income tax	Varies by municipality; typically based on gross rental income
Electronic invoicing	Required for commercial rental activity

Frequently Asked Questions

Is the 12.75% a new tax? No. The Real Estate Capital Gains Tax has been in place since 2019. What is new in 2026 is that platforms will withhold and remit it automatically, making enforcement significantly more effective.

Does the 12.75% withholding apply if I only rent a few weeks per year? Yes. The withholding applies to gross rental income from short-term stays, regardless of how many weeks you rent. Even occasional rentals are covered.

Are long-term rentals taxed the same way? No. Stays of 30 days or more to the same tenant are generally treated as residential leases and are not subject to the 12.75% platform withholding. They are still taxable under standard income tax rules, but the enforcement mechanism is different.

Do I need a corporation to own a vacation rental in Costa Rica? No. Foreigners can own property in their personal name. A corporation is a choice, and it has liability and estate planning benefits. It does not eliminate tax obligations.

What happens if I do not comply? Enforcement can include fines, back-tax assessments, and in serious cases, closure of your rental operation. Municipal authorities can padlock a property immediately for operating without the required permits. Tax authorities can assess penalties on unpaid taxes. The risk is real and increasing.

This article is for general informational purposes only. It is not tax or legal advice. Tax regulations in Costa Rica change, and the specifics of your situation matter. Work with a qualified Costa Rica tax professional to understand your obligations.