AIRBNB HOSTS FISCALITY FOR COSTA RICAN LISTING IN 2025.

As your property manager in Costa Rica, it's essential to inform you about recent legislative changes affecting property taxation and operational compliance. Understanding and adhering to these regulations will help you avoid penalties and ensure your investments remain secure. 

Below is a comprehensive overview of the key obligations:

1. Real Estate Capital Gains Tax (15%) and Sales Tax (13% IVA):

Starting January 2025, platforms like Airbnb and VRBO began reporting detailed information about Costa Rican listings to the Ministry of Hacienda (Costa Rica's tax authority). This information includes the owner's name, identification, property location, and income generated.

Here are the 2 taxes your are expected to claim & pay each month while hosting on Airbnb in Costa Rica :

• Sales Tax (IVA): A 13% tax is applied to the gross nightly rate for each night sold.

• Capital Gains Tax: A flat 15% tax is levied after a 15% deduction on your income before sales tax for each night sold.

Example: For a $100 nightly rate (excluding sales tax), the total charge to the guest would be $113. From this, $13 is sales tax, and $12.75 is capital gains tax, totaling $25.75 in taxes, equating to a 25% tax rate on the $100 nightly fee.

Required Actions:

1. Business Registration: Ensure your corporation is registered as ACTIVE with Hacienda under the commercial activity "55101: Alquileres residenciales menores a un mes" ("residential rental inferior to 1 month")

2. Electronic Receipts: Issue electronic receipts for each reservation.

3. Monthly Filings:

• D114-02 Form: Submit this form monthly to report sales tax, based on the receipts issued in the previous month To be submitted even when no sales have taken place during the previous month.

• D125 Form: Submit this form monthly to report capital gains tax, to be submitted only when income has been generated during the previous month.

4. Tax Payments: Pay the reported amounts for sales tax and capital gains tax by the 15th of each month. While penalties for late payments are minimal, timely compliance is recommended.

Note: Airbnb now offers an option to add a 13% sales tax to your listing. This tax is not displayed in the nightly price on the guest's search results but is added at the final booking confirmation step on the guest's end. Airbnb then calculates its commission based on the nightly price excluding this tax.

2. Municipal Operating Permit ("Patente Municipal"):

A municipal permit is required for any commercial activity conducted within the municipality. Municipalities are crossreferencing their business registries with the tax authority's records to identify non-compliant businesses. 

As per march 2025 notifications have already been sent by the municpality of Nicoya to some property owners regarding the need to obtain this permit.

Permit Details:

• Type: Non-domiciled activity permit (for businesses without a physical commercial space). Renewal: Requires annual renewal.

• Cost: Calculated at 0.0015% of your annual gross income, with a minimum fee of ₡157,080. Required Action:

Income Declaration: Submit a copy of your annual income declaration (D125 form) to the municipality each year to adjust the permit fee based on your reported income.

Application Process: This can be handled by your legal representative through a Power of Attorney.

3. Costa Rican Tourism Institute (ICT) Registration:

Registration with the ICT is mandatory for all tourism-related businesses, including short-term rentals. This process is free of charge and does not incur additional taxes. It serves as a formal recognition of your property within the tourism sector.

Required Action: Complete the electronic registration form available on the ICT's official website. You'll need to provide details such as the property's name, address, number of rooms, maximum guest capacity, and information about the legal representative.

4. Immediate Steps to Ensure Compliance:

Business Registration: Confirm that your corporation is registered as ACTIVE under the "Short Term Rentals" commercial activity.

Permit Acquisition: Obtain the municipal operating permit applicable to your rental activities.

Income Reporting: Report your rental income to demonstrate compliance and avoid potential audits or penalties.

By proactively addressing these requirements, you can ensure that your property operations align with Costa Rican laws and regulations. If you need to take this conversation further or need assistance with any of these processes contact us today.