Many investors and expatriates wish to purchase properties in Costa Rica to enjoy personally while also converting them into rental businesses through platforms such as Airbnb, VRBO, and similar services. With the entry into force of the Framework Law for the Regulation of Non-Traditional Lodging and Its Intermediation through Digital Platforms, along with its corresponding regulations, new rights and obligations have been established for property owners, service providers, users, and marketing or intermediary companies engaged in short-term rentals.
Below are the basic questions and answers regarding this law.
What is considered a short-term rental or non-traditional lodging?
The law defines short-term rental as the leasing of houses, apartments, villas, chalets, bungalows, rooms, or any similar construction for periods not exceeding one year and not shorter than twenty-four hours.
Who must register under this law?
Individuals or legal entities that commercialize or intermediate short-term rentals must register with the Registry of Providers and Marketing or Intermediary Companies of Non-Traditional Lodging Services, created by the Costa Rican Tourism Institute (ICT), the governmental authority responsible for promoting sustainable tourism.
Are there benefits to completing this new registration?
Yes. The ICT grants several benefits to registered providers, including:
a) Authorization to freely operate short-term rental activities;
b) Eligibility to obtain a Certificate for Sustainable Tourism (CST); and
c) Access to promotional activities organized by the ICT.
It should be noted that these benefits are temporary, and their long-term application will depend on how the program evolves over time.
What are the legal requirements to complete this registration?
Applicants must complete an electronic form (available only in Spanish) at www.ict.go.cr and provide the following information:
a) Full name of the individual or legal entity
b) National ID number or corporate identification number
c) Name and ID number of the legal representative
d) Legal domicile of the service provider
e) Province, canton, and district where the property is located
f) Exact address of the property
g) Number of rooms
h) Maximum number of guests
i) Electronic contact information for notifications
j) Website or similar online presence of the property
k) Telephone number
All information must be accurate and complete, as it will be subject to review for approval. Prior registration is required before submitting the form. This is a formal administrative legal process, and appeals may be necessary if the application is denied. Do not allow unqualified individuals to handle this process on your behalf.
What minimum conditions must short-term rental services meet?
To operate legally, properties must comply with the following minimum conditions:
a) Regular cleaning of the facilities
b) Sanitary services for personal hygiene, including at least one bathroom and toilet
c) Proper maintenance of the property
d) Minimum sanitary and hygienic standards
e) Availability of containers for the separation and management of solid waste
Are there tax obligations under this new regulation?
Yes. It is mandatory to register as a taxpayer with the Ministry of Finance, issue electronic invoices, and retain monthly accounting services to handle tax payments and required tax filings in order to obtain and maintain a short-term rental license.
Are there zoning restrictions for short-term rentals?
Non-traditional lodging and short-term rentals may operate in residential zones, eliminating the need for a commercial business license. However, it is always advisable to consult the local municipality where the property is located to determine whether any special local regulations apply.
Are there legal consequences for non-compliance?
Yes. Operating without proper registration in the Registry of Providers and Marketing or Intermediary Companies of Non-Traditional Lodging Services is illegal. The Ministry of Finance, Municipal Governments, and the Ministry of Health will intervene and impose penalties for non-compliance, even though the Framework Law does not significantly alter existing enforcement authority.
