At Osa Property Management, we understand the importance of vacation rental licensing in Costa Rica. The country’s booming tourism industry has led to strict regulations for property owners and managers.
Obtaining a proper license is not just a legal requirement; it’s a smart business move that can protect your investment and boost your credibility. In this post, we’ll explore why you need a vacation rental license and how to get one.
What Are Costa Rica’s Vacation Rental Laws?
Registration Requirements
Costa Rica’s vacation rental industry operates under strict regulations. The “Law for the Regularization of Non-Traditional Lodging and its Intermediation through Digital Platforms” governs short-term rentals for periods between 24 hours and one year. All vacation rental properties must register with the Costa Rican Institute of Tourism (ICT). This process requires owners to fill out an electronic form (in Spanish only) available at www.ict.go.cr and include information such as the name of the property, address, room count, maximum guest capacity, and legal representative details.
Operational Standards
Vacation rentals in Costa Rica must adhere to specific operational standards. These include:
- Maintaining proper sanitary and hygienic conditions
- Implementing effective waste management systems
- Providing periodic cleaning services
Properties must also comply with Law 7600 requirements for vacation rentals in Costa Rica. This law mandates that public and private establishments must provide accessible services, including the adaptation of facilities and infrastructure to meet the needs of disabled individuals.
Tax Obligations
Property owners who engage in vacation rentals face several tax obligations:
- Registration as tax contributors
- Issuance of electronic invoices for all transactions
- Maintenance of monthly accounting records for tax filings
It’s important to note that the first 3.8 million colones (approximately $7,600 USD) of annual rental income is tax-exempt as of 2025. However, short-term rentals are subject to a 13% Value Added Tax (IVA).
Consequences of Non-Compliance
Operating a vacation rental without proper licensing can result in severe consequences. Local municipalities have the authority to close unlicensed rental premises. Moreover, property owners may face significant legal and financial penalties from various government bodies, including the Tax Ministry and Health Ministry. The potential loss of income and reputation damage far outweigh the costs and effort required to obtain proper licensing.
Navigating the Licensing Process
The complexity of Costa Rica’s vacation rental laws underscores the importance of professional guidance. Property management companies with extensive experience in the local market (such as Osa Property Management) can provide invaluable assistance in navigating these regulations. Their expertise can help property owners avoid costly mistakes and ensure full compliance with all legal requirements.
As we move forward, let’s explore the numerous benefits that come with obtaining a vacation rental license in Costa Rica.
Why Get a Vacation Rental License?
Legal Protection and Compliance
This guide will break down the essential aspects of rental agreements, legal requirements, and dispute resolution processes in Costa Rica. Unlicensed properties risk closure and substantial penalties. The license ensures operation within the law, allowing owners to concentrate on delivering exceptional guest experiences instead of worrying about legal consequences. Property owners must register with the local municipality where their rental property is located.
Increased Visibility and Marketing Opportunities
Licensed properties gain access to official tourism promotion channels in Costa Rica. The Costa Rican Tourism Board (ICT) actively promotes registered accommodations, which can increase a property’s visibility to a broader audience. This official backing often leads to more bookings and higher occupancy rates (directly impacting the bottom line).
Enhanced Credibility and Guest Trust
In the competitive vacation rental market, trust is essential. A license serves as a seal of approval, assuring potential guests that a property meets official standards for safety, hygiene, and quality. This credibility often results in more positive reviews, repeat bookings, and word-of-mouth recommendations (invaluable for long-term success in the rental industry).
Access to Support and Resources
Licensed property owners often receive support and resources from local tourism authorities. This can include training opportunities, market insights, and assistance with regulatory compliance. Such support proves invaluable for navigating the complexities of the vacation rental industry in Costa Rica.
Competitive Advantage
A vacation rental license sets a property apart from unlicensed competitors. Many travelers prefer to book licensed accommodations for their peace of mind and assurance of quality. This preference can translate into a significant competitive advantage in a crowded market. Compliance tracking systems help landlords monitor local regulations, from health and safety standards to tax requirements.
The benefits of obtaining a vacation rental license extend beyond mere legal compliance. They encompass improved business opportunities, enhanced guest trust, and long-term success in Costa Rica’s thriving tourism industry. The next section will outline the steps required to obtain this valuable license.
How to Get a Vacation Rental License in Costa Rica
Required Documentation
The first step to obtain a vacation rental license is to collect all necessary documents. These typically include:
- Proof of property ownership or a valid lease agreement
- A copy of the property owner’s identification (passport for foreigners)
- Proof of registration with Costa Rican tax authorities
- A detailed floor plan of the property
- Photographs of the property (including all rooms and amenities)
- Proof of compliance with health and safety regulations
Property owners must ensure all documents are up-to-date and properly certified. Any discrepancies can lead to delays or rejection of the application.
Application Process
Once all documents are in order, property owners must submit their application to the Costa Rican Institute of Tourism (ICT). The application form is available on the ICT website, but it’s only in Spanish. Non-Spanish speakers should seek assistance from a local property management company or legal professional to ensure accurate completion.
The ICT typically processes applications within 30 to 60 days. During this time, they may request additional information or clarification. Property owners should respond promptly to any inquiries to avoid delays.
According to the ICT requirements, applicants must be included in one of the official ICT lists, receive ICT training, and meet mandatory requirements to obtain a tourism contract.
Associated Costs
The costs of obtaining a vacation rental license in Costa Rica can vary depending on several factors, including the size and location of the property. As of 2025, the initial application fee is approximately $200 USD. However, this is just the beginning.
Property owners should also budget for:
- Legal fees if hiring an attorney to assist with the process
- Costs associated with bringing the property up to required standards
- Ongoing fees for maintaining the license (which can range from $100 to $500 annually)
While these costs may seem significant, they’re a necessary investment for operating legally and reaping the benefits of official recognition in Costa Rica’s competitive vacation rental market.
Professional Assistance
The complexity of the licensing process often necessitates professional help. Property management companies with extensive experience in the local market can provide invaluable assistance. Their expertise can help property owners avoid costly mistakes and ensure full compliance with all legal requirements.
Osa Property Management offers services covering marketing, tenant relations, tax compliance, and maintenance oversight in popular areas like Tarcoles. Their team understands the intricacies of local regulations and can guide property owners through each step (from document preparation to final approval).
Final Thoughts
Vacation rental licensing in Costa Rica represents a strategic investment in your property’s future. Property owners who obtain the necessary licenses demonstrate their commitment to quality, safety, and legal compliance. This commitment yields numerous benefits, including increased visibility through official tourism channels, enhanced guest trust, and higher booking rates.
The process of obtaining a license may appear challenging, but the long-term advantages outweigh the initial effort and costs. Licensed properties enjoy a competitive edge in the market, access valuable resources from tourism authorities, and operate with the assurance of legal compliance. As Costa Rica’s tourism industry expands, licensed properties position themselves to capitalize on this growth and secure their market share.
Professional assistance can streamline the complexities of vacation rental licensing. Osa Property Management offers expert guidance through every step of the licensing process (and beyond). Their team understands local regulations and helps property owners navigate the intricacies of vacation rental management in Costa Rica’s thriving tourism market.