Vacation Rentals: New Law Projected to Decline

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.

Thursday, September 12, 2019

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.

See "Plan to Regulate Airbnb Moves Forward

After completing the procedure in the Assembly, only the signature of the Executive and its subsequent publication is needed for the new rules that will apply to the sector to enter into force.

Carlos Muñoz, Airbnb's director of Public Policies and Communications for the Caribbean and Central America, explained to that "... a possible sharp fall of its hosts in Costa Rica is expected, in view of the obligations of the new law that regulates non-traditional accommodation in the country. Additional expenses are required such as hiring lawyers and accountants, as well as the adequacy of accommodation sites, which would cause this desertion of affiliates.

You may be interested in "Threats to "Traditional" tourism

Muñoz added that "... The drafting of the law is not appropriate for a company that is not domiciled in Costa Rica and that may have, for example, a Costa Rican host based in Mexico who rents a house in Costa Rica and does so through a management company."

For the Association of Free Consumers of Costa Rica, the bill that will regulate non-traditional hosting platforms such as Aribnb, contemplates, in addition to the 13% tax, other requirements for bidders, such as registration with the Costa Rican Tourism Institute.

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Plan to Regulate Airbnb Moves Forward

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