Annual property tax: 0.25%
The base property tax (impuesto sobre bienes inmuebles) is just 0.25% of the registered municipal value, paid to the local municipality. On a $400,000 registered value that's about $1,000/year.
Registered value often lags market value, so the effective rate is frequently even lower — but don't bank on under-declaring; municipalities update valuations.
The luxury-home tax (impuesto solidario)
Homes whose construction value exceeds a threshold (around $230,000, indexed annually) pay an additional 'solidarity' tax on a sliding scale from roughly 0.25% to 0.55% of total value.
It's assessed on the home/construction value, and you self-declare every three years. Budget for it on higher-end villas.
Rental income: 13% VAT + income tax
Short-term stays are a taxable service: you charge and remit 13% VAT (IVA). Rental income is also subject to income tax — most owners use the 15% flat regime on gross rental income (no deductions) or the standard profit-based regime with deductions.
Non-residents earning rental income are taxed in Costa Rica regardless of residency. Many owners hold property in a Costa Rican corporation for liability and administration; get a local accountant (contador) to register you and file monthly VAT.
For NITE registration, ICT Law 9742 lodging rules, monthly IVA filings, and Hacienda enforcement risk, read the dedicated 2026 STR tax & registration guide — that page owns the host-ops detail so this one stays focused on property tax and the rental tax overview.
Don't forget your home country
US citizens report worldwide income to the IRS and may need FBAR/FATCA filings for foreign accounts and corporations; foreign tax credits usually offset double taxation. Canadians similarly report worldwide income.
This is general information, not tax advice — coordinate a cross-border accountant on both sides before closing.
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Model net return — then check a listingFrequently asked questions
How much is property tax in Costa Rica?
The base property tax is 0.25% of the registered value per year, paid to the municipality. Higher-value homes (construction value above ~$230,000) also pay a sliding-scale luxury tax of roughly 0.25%–0.55%.
Do you pay tax on Airbnb income in Costa Rica?
Yes. Short-term rental stays carry 13% VAT (IVA) that you collect and remit, and the income is subject to income tax — commonly a 15% flat rate on gross, or the profit-based regime. This applies to non-residents too. For NITE, ICT registration, and filing cadence, see the STR tax & registration guide.
Is there a property tax exemption in Costa Rica?
There's no general exemption, but the base rate is already low at 0.25%. The luxury-home tax only applies above the construction-value threshold, so modest homes avoid it entirely.
Should I buy Costa Rica property in a corporation?
Many foreign owners do, for liability separation and cleaner administration of rental income and VAT. It adds annual costs (the corporate 'timbre' and accounting), so weigh it with a local attorney and accountant for your situation.
Where do I learn about NITE and ICT 9742 registration?
Start with Costa Rica Str Tax Registration 2026 — it covers lodging registration, NITE, IVA filings, and SRL structure costs. Confirm current Hacienda and ICT checklists with a contador; this is not tax advice.
Written by Patrick Beland
STR expert and investor — software developer, house flipper, former realtor in Canada, and short-term rental investor across Canada and Costa Rica, now based in Playas del Coco. I write from my own books, not a brochure. About
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