Taxes on Rental Accommodation in Costa Rica

A bill being prepared by the hotel union would force platforms such as Airbnb to pay 13% sales tax and an additional 5% for national parks.

Monday, February 6, 2017

The bill is being drafted by the National Chamber of Tourism, which intends to submit it to the Legislative Assembly. If passed, this law would take effect for all platforms used for renting accommodation for tourism purposes, such as Airbnb, Homeaway and others.

"... The proposal aims to force these kinds of businesses to pay 13% sales tax and an additional 5% tax which would be used to strengthen national parks. This additional charge would be applied only to those hosts that do not have tourist declaratory status granted by the Costa Rican Tourism Institute (ICT); thus the government would have a voluntary list of contributors."It is an issue of responsibility in the sector," said Abarca, who denied having a special interest in putting an end to the competition but, rather, in formally integrating these rental platform, to be able to compete on equal terms."

Days ago Airbnb representatives met with the government and proposed a plan to implement payment of sales tax. See: "Airbnb Wants to Pay Taxes in Costa Rica"

¿Busca soluciones de inteligencia comercial para su empresa?

Do you need more information about your business sector?

Request more information:









this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423


More on this topic

Vacation Rentals: New Law Projected to Decline

September 2019

With the legal framework approved in Costa Rica, which regulates the provision of tourist rental services in housing through digital platforms, Airbnb executives anticipate a considerable drop in the number of hosts in the country.

On September 5, the Legislative Assembly reported that file 20865, the framework law for the regulation of non-traditional hosting and its intermediation through digital platforms, was approved for the second debate.

Changes in Proposed Vacation Rental Taxes

March 2019

A 3% additional to the 13% VAT that was expected to be charged in Costa Rica as a tax on accommodation services provided through the Airbnb platform and other similar platforms was finally removed from the bill being discussed in the Legislative Assembly.

Bill 20.865 for the regulation of non-traditional hosting and its intermediation through digital platforms, which is discussed in the Legislative Assembly and determines the taxes to be charged for the activity, will be modified by the Economic Affairs Commission.

Hotels are Losing War On Holiday Rentals

October 2016

In Costa Rica the total amount of accommodation available for rent through the web platform Airbnb is now equivalent to 18% of the hotels in the country.

The figure has been confirmed by the union of hoteliers, who say there is now a total of 11,000 homes offering accommodation for tourism through Airbnb. On top of this data there are also residences rented to tourists through other platforms such as Homeaway or VRBO.

Costa Rica: Tax on Holiday Rentals

August 2014

A draft anti tax avoidance law to be discussed by the Assembly in Costa Rica clarifies the obligation to pay sales tax on homes rented out for less than a month.

Sales tax on holiday houses rented to tourists is already covered in the General Sales Tax Act, but in practice "... this obligation is often breached by owners," affecting the formal hotel sector, which has to pay the same tax.

ok