There is a law that came into effect October 2019 which aims to oversee tourist rental services such as: homes, apartments, villas, chalets, bungalows, single rooms and any other similar services and to protect the tourists that utilize these types of services. It also seeks to regulate the platforms that provide these services as intermediaries between the owner and occupant.
This law refers to nontraditional rentals, as separate from traditional hotels and motels. The law wants to protect these specific consumers in three principal areas:
a) Accuracy of information between what is promised and what is delivered
b) Providing for minimum safety, health and hygiene requirements under law
c) Protecting the consumer´s privacy and data
Those that would rent these types of temporary nontraditional services, whether they are corporations or individuals, must register with the Institute of Tourism, register with the tax authorities, issue the digital invoice, pay the appropriate taxes, such as: the Value Added Tax (13%) and Income Tax, guarantee security, safety and comply with all related laws. In other words, these activities which were previously seen by renters as temporary unofficial rentals are now considered by the authorities as fully taxable commercial activities.
The authorities aim to work together, especially the Institute of Tourism and the Tax authorities, to create a directory or list of all providers of these services. The law requires that the authorities respect issues such as the confidential information of corporations or individuals which are protected by law and international agreements. The objective is to obtain a clear picture of the magnitude of these services, for tax, commercial, safety and other purposes, without affecting the freedom of commercial competition.
One area that has alerted the authorities to these types of activities is the apparent increase of high-end properties which are rented out on a short-term basis as a means of offsetting maintenance costs or, increasingly, properties destined specifically for this type of short-term rentals. The authorities consider that enough money is collected from these luxury rentals that justifies looking into this area of business. For tax purposes each activity has an activity code. For example, the activity code for traditional hotels is 551002 but the activity code for nontraditional rentals is 551001, but there are many others.
There are many tax issues that persons or corporations need to consider if they are engaged in these types of rentals. Amongst the most important are whether the person is subject to Capital Gains from rentals, which has a specific tax base of 15%. Also, each person must consider how they will handle their income tax which can be reported and paid under different categories and therefore have different items of authorized deductions. These issues need to be analyzed with the help of a qualified accounting and/or legal professional.
The Department of the Treasury (Ministerio de Hacienda) and the Department of Taxation (Dirección General de Tributación) issued a Government Law (Decreto- Decree) which establishes the obligation of nontraditional platforms to report on the vendors that use their platforms.
If and when these platforms file their reports, the authorities will be able to cross check their information for tax and other purposes. This also means that those individuals that do not have a permanent legal status in Costa Rica may need a special Tax Identification Number in order to file and pay the appropriate taxes. This decree is complex and regulates a number of issues far too long to list here.
The Institute of Tourism has a directory in which nontraditional rental providers can register their service with all pertinent details, such as: individual or company name, identification numbers, addresses, emails, websites, zip codes and others. The law intends to make this directory available to the public.
As we can see, there is a strong initiative to regulate and register these types of nontraditional rental options, and this means that those who operate this type of activity should consider looking into these regulations to determine if they may be affected and what would be the best course of action.
About
Attorney- Jorge Montero B. was educated in the U.S.A. and in Costa Rica. He holds various specialties and degrees in Criminal, Commercial, Environmental and Agrarian Law from the University of Costa Rica and has over 30 years of litigation, contract and counsel experience.
Email: acmbalaw@gmail.com
Tel: (506) 8384 2246
WhatsApp: (506) 8384 2246
Facts Only
A law effective October 2019 regulates nontraditional tourist rentals in Costa Rica.
The law covers homes, apartments, villas, chalets, bungalows, single rooms, and similar services.
It aims to protect tourists in accuracy of information, safety/health standards, and privacy/data protection.
Renters must register with the Institute of Tourism and tax authorities.
Renters must issue digital invoices and pay taxes, including 13% Value Added Tax and income tax.
The law applies to both corporations and individuals offering short-term rentals.
Authorities will collaborate to create a directory of rental providers.
The directory will include names, identification numbers, addresses, emails, websites, and zip codes.
High-end properties rented short-term have attracted regulatory attention.
Traditional hotels have activity code 551002; nontraditional rentals have code 551001.
Capital gains tax on rentals is 15%.
Rental platforms must report vendor information to authorities.
Non-residents may require a special Tax Identification Number for tax compliance.
The Institute of Tourism’s directory will be made public.
Executive Summary
Full Take
This regulatory shift in Costa Rica reflects a global trend toward formalizing the gig economy, particularly in tourism. The strongest version of this narrative is that it balances consumer protection, tax fairness, and market transparency while respecting privacy and commercial competition. The law’s focus on high-end rentals suggests a pragmatic approach to revenue collection, targeting sectors with clear financial capacity. However, the complexity of tax codes and registration requirements may disproportionately burden small-scale providers, raising questions about equity. The requirement for platforms to report vendor data introduces surveillance dynamics, where compliance could become a tool for broader financial monitoring.
Patterns detected: none. The narrative avoids emotional exploitation or distortion, presenting a straightforward regulatory framework. The root cause appears to be the tension between informal economic activity and state oversight—a recurring theme as digital platforms disrupt traditional industries. The implications for human agency are mixed: while formalization may protect consumers and legitimize businesses, it also imposes bureaucratic hurdles that could stifle innovation or exclude marginalized providers. Who benefits? The state gains tax revenue, platforms gain legitimacy, and tourists gain protections. Who bears costs? Small operators may struggle with compliance, and privacy concerns arise from data sharing.
Bridge questions: How might this law affect Costa Rica’s appeal as a tourist destination? Could alternative compliance models reduce barriers for small providers? What safeguards exist to prevent data misuse in the public directory?
Counterstrike scan: A coordinated influence campaign might frame this as either a government overreach or a necessary crackdown on tax evasion, depending on the agenda. The actual content, however, presents a neutral regulatory update without signs of manipulation.
Sentinel — Human
While some AI-generated content can be indistinguishable from human writing, this article's unique voice and inconsistent sentence structure suggest it is likely human-written.