HomeNewsShort Term Rental Income in Costa Rica to Face New Tax Rules

Short Term Rental Income in Costa Rica to Face New Tax Rules

Property owners in Costa Rica who rent accommodations through popular platforms like Airbnb or Booking.com will soon face a new tax obligation. The General Directorate of Taxation (DGT) announced that a 12.75% tax will apply to rental income generated through these digital platforms, starting at the end of 2026.

By that time, tax authorities expect to receive detailed data from these platforms about users renting properties in Costa Rica. This information will improve traceability and enable more effective tax collection, as part of the government’s efforts to incorporate short-term rentals into the formal tax system.

Mario Ramos, director of the DGT, urged all individuals engaged in this commercial activity to register as taxpayers to avoid fines or sanctions once enforcement begins. He stressed the importance of early compliance to prevent any legal complications.

Finance Minister Nogui Acosta emphasized that the policy is designed to promote tax justice rather than excessive taxation. He also criticized a bill currently under discussion in the Legislative Assembly, which proposes reforms to the Code of Tax Norms and Procedures, calling it disproportionate and unnecessary.

The ability to obtain user information from digital platforms is made possible through an agreement signed with the Organization for Economic Cooperation and Development (OECD). This agreement facilitates international cooperation in tax matters and supports the government’s efforts to collect revenue more efficiently.

Airbnb has already been applying a 13% Value Added Tax (VAT) on service fees in Costa Rica since 2022, following its inclusion on the official list of taxable lodging platforms.

This new tax regulation is part of a broader digital tax framework introduced in October 2020 under the Law for the Strengthening of Public Finances, which implemented VAT on cross-border digital services such as streaming platforms, software, gaming, and transportation apps.

Authorities strongly advise rental hosts to regularize their tax status well before the enforcement date to ensure full compliance and avoid penalties.

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