Thinking of listing your property on Airbnb in Costa Rica? Learn the legal and tax steps every host must follow in 2025 to avoid fines and protect your investment.
With the popularity of Airbnb and other short-term rental platforms booming in Costa Rica, many property owners are discovering a new source of income. But hosting on Airbnb is more than just offering a clean room and good reviews. It’s a business, and it comes with legal, tax, and municipal obligations that many people overlook.
Here’s a 2025 guide to doing it the right way.
1. Registration with the Costa Rican Tourism Institute (ICT)
If you are renting out your home or apartment on Airbnb (or similar platforms), you are legally required to register with the ICT under Law No. 9742.
Registration is done online and includes your personal details and information about the property. By registering:
- You comply with national tourism law
- You’re eligible for ICT promotional campaigns
- You can apply for the Tourism Sustainability Certificate (CST), which helps attract eco-conscious travelers
Tip: Registration is free and shows guests you’re running a legal and professional rental business.
2. Register as a Taxpayer with Hacienda
Next, you must register as a taxpayer with the Dirección General de Tributación (DGT), Costa Rica’s tax authority.
- Use Form D-140 via the ATV system if you have a DIMEX or a company
- If you’re a foreigner without residency, you’ll register with a NITE number
This step is mandatory in order to report your income, issue invoices, and file tax returns.
3. Get a Municipal Business License (Patente)
Every host operating regularly must have a patente comercial, which is a local business license issued by the municipality where the property is located.
Some municipal requirements may include:
- Health and safety inspections
- Zoning verification
- Annual municipal taxes
Before listing your home on Airbnb, check with your local municipal office about what’s required in your area.
4. Electronic Invoicing Is Not Optional
You must issue an official electronic invoice (factura electrónica) every time you host a guest—even if Airbnb processes the payment.
- The invoice must include the full gross amount received
- Airbnb’s service fee is not subtracted
- If the guest doesn’t provide their information, issue a tiquete electrónico
These invoices are required for calculating and reporting VAT and income tax.
5. Airbnb Taxes in Costa Rica
a) Income Tax – Capital Gains from Rentals
Income from Airbnb is taxed at 15% on gross rental income, with a fixed 15% expense deduction.
However, if you hire staff and enroll them in Caja (CCSS), you may switch to the general income regime, which allows for full deduction of your actual expenses.
b) VAT (Value Added Tax)
In addition to Airbnb charging 13% VAT on their service fee, you must also charge and report 13% VAT on your rental price.
If you don’t configure your Airbnb account to add VAT separately, the system assumes your price includes VAT, cutting into your profit.
Example: If you charge $100/night and don’t separate VAT, you owe $11.50 to the government, leaving you with only $88.50 net.
6. Airbnb Will Share Your Income with the Government (Starting 2025)
As part of Costa Rica’s tax transparency agreement with the OECD, Airbnb will begin automatically reporting host income to the Costa Rican government.
Starting January 1, 2025, Costa Rica can request your income records directly from Airbnb’s global headquarters in Ireland.
- First full report due by April 30, 2026
- Will include total income, commissions, and tax info
- Noncompliant hosts will be easier to identify
This means: The government will know what you earn, whether you declare it or not.
7. Check Condominium or Community Rules
If your Airbnb is in a condo or gated community, check the internal regulations. Many associations restrict or ban short-term rentals.
Avoid costly legal disputes or complaints by ensuring your listing is allowed.
8. Protect Yourself with the Right Insurance
While Airbnb offers limited host protection, it’s essential to:
- Buy a dedicated rental property insurance policy
- Ensure coverage includes liability, guest injuries, and property damage
Not all home insurance policies cover short-term rentals—speak with your insurer or an attorney.
9. What’s Changing in 2025?
Although Costa Rica passed laws in 2021 requiring Airbnb hosts to register and pay taxes, compliance has been low. Of the 44,000+ listings, only about 5,000 hosts are registered.
With new data-sharing agreements and legal reforms coming, enforcement is expected to increase. Tourism organizations are pressuring the government to level the playing field between formal hotels and unregulated rentals.
Final Thoughts: Airbnb Is a Business – Treat It Like One
Renting on Airbnb in Costa Rica is a real business, and like any business, it comes with responsibilities.
To do it legally, you need to:
✔️ Register with the ICT
✔️ Get a municipal business license
✔️ Register with Hacienda and declare taxes
✔️ Issue electronic invoices
✔️ Collect and report 13% VAT
✔️ Understand HOA rules and insurance needs
✔️ Stay informed on new regulations
Need Legal Help with Your Airbnb Property?
At Across Borders Legal, we specialize in helping expats, investors, and property owners stay compliant with Costa Rican law, from taxes to business setup to real estate.
Whether you’re just getting started or need to legalize your existing rental, we can guide you step by step.
👉 Contact us here to schedule a consultation and protect your Airbnb investment the right way.
