The Legal Side of Costa Rica
Featuring Articles Written by Oscar Hernandez, Attorney









Oscar Hernandez is an Immigration Attorney 
Located in San Jose, Costa Rica. He & His Team at
Expat Legal Advisors understand the needs 
of the Expat who has begun a NEW LIFE in Costa Rica.
They know that the best way to enjoy the Pura Vida Lifestyle is to 
have complete knowledge of the Laws of the Land. .
Understanding the Law & Living the Dream. .


Living the Pura Vida lifestyle in Costa Rica means more than enjoying its beaches, jungles and peaceful rhythm.
It means embracing a new way of life built on respect, knowledge and connection. 
At Expat Legal Advisors, we believe that the more you understand the laws of the land, 
the more fully and confidently you can enjoy the beauty of your new home.

These insightful articles, written by Attorney Oscar Hernández, who practices law in San José, 
are designed to guide you through the legal landscape of Costa Rica with clarity and purpose. 
From legal residency & real estate to healthcare & daily living, Oscar’s experience and dedication help demystify complex legal topics, empowering expats to make informed decisions 
and live freely within the framework of Costa Rican law.

Knowledge is Peace of Mind. . and Peace of Mind is Pura Vida. .

Here, you’ll find practical wisdom, trusted guidance and the tools to help you thrive
 as a well-informed member of Costa Rica’s expat community.
Enjoy this Article
Written Especially
for You. .
Mastering Costa Rica Airbnb Taxes in 2026: 
What Every Property Owner Must Know. .

Owning a vacation rental in Costa Rica is a dream for many expats and investors. Watching those Airbnb and VRBO bookings roll in feels amazing. But when you hear the words Ministerio de Hacienda, that excitement can quickly turn into stress.

Here’s the truth for 2026:
The government now automatically knows what you’re earning.

Digital platforms like Airbnb and VRBO are required to report host income directly to Costa Rica. Transactions from 2025 are being reported for the 2026 tax season. If your filings don’t match what the platforms report, it can trigger audits and penalties.

Compliance is no longer optional. It is strictly enforced.


So what taxes do you actually need to pay?

1. IVA (Value Added Tax) – 13%
If you rent for less than 30 days, you must charge 13% IVA.
The guest pays it — but you must collect it and remit it monthly between the 1st and 15th.
If you don’t separate it properly, you could lose 13% of your profit.

2. Income Tax (Real Estate Capital Income)
Most owners qualify for the simplified regime.
You pay 15% on 85% of your gross income.
That equals an effective rate of 12.75%.
Filed monthly via Form D-101.

3. Municipal Property Tax
0.25% of the registered property value.
Usually paid quarterly or annually.
Plus municipal service fees like garbage collection.

4. Solidarity Tax (Luxury Tax)
If your home’s construction value exceeds the government threshold (approximately ₡145 million colones), you may owe this annual tax.
Rates range from 0.25% to 0.55%.
Due every January 15.

5. Corporate Tax
If your property is held in a corporation (SRL or SA), you must pay the annual corporate franchise tax in January.

But taxes are only half the story.

To legally operate an Airbnb in Costa Rica in 2026, you must also:
• Register with the ICT (Costa Rican Tourism Institute)
• Obtain a Municipal Business License (Patente Comercial)
• Issue electronic invoices for every guest stay
• File RTBF annually if you own through a corporation

Ignoring these requirements can lead to:
• Heavy financial penalties
• Property liens
• Closure of your rental business

The good news? When structured properly, your investment can be fully compliant, protected, and profitable.

You purchased in Costa Rica to enjoy the Pura Vida lifestyle — not to spend your evenings navigating tax portals.

That’s where we come in.

At Expat Legal Advisors, we handle:
• Monthly IVA and income tax filings
• Electronic invoicing
• ICT registration and municipal licensing
• Corporate compliance and RTBF
• Full-service property management if needed

If you own a short-term rental in Costa Rica — or are thinking about buying one — now is the time to make sure you’re structured correctly for 2026.

Book a complimentary 30-minute call with our team here:
https://calendly.com/expat/30min

Let’s protect your investment and keep your Costa Rica dream running smoothly.

Pura Vida.



Lic. Oscar Andrés López Hernández
Attorney-at-Law
Expat Legal Advisors
When You're in Need of Legal Advice in Costa Rica, 
Contact 
Oscar Hernandez at

WhatsApp: 
506-8543-7650

Email:
oscar@expatlegaladvisors.com


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