For five years I operated properties on Airbnb as a Superhost. I no longer do, and the reason is exactly the subject of this article: I ran the numbers against the new tax burden, and for my situation, the scale tipped. I'm not going to tell you what to do with your property. I'm going to give you the real numbers so you can decide based on your own return threshold.
What changed in 2026
The big change isn't a new tax. It's that it now collects itself.
Starting in 2026, platforms like Airbnb, Vrbo and Booking begin withholding and reporting automatically to Hacienda, Costa Rica's tax authority. Before, rental income was only visible if the owner reported it. Now the platform hands your data and payout amounts directly to the tax administration. Assume that everything coming through the platform will be cross-checked against your taxpayer record.
The real costs of operating short-term (under 30 days)
These are the items you must subtract before talking about returns:
- 12.75% withholding on gross short-term rental income.
- ICT registration (Costa Rican Tourism Institute) under Law 9742. It is mandatory.
- Municipal license (patente) in the municipality where the property sits.
- 13% VAT that commonly applies to short-term lodging.
- Mandatory electronic invoicing. Failing to issue it can trigger fines starting around 2,000 dollars.
- Management costs: cleaning between guests, restocking, accelerated wear from turnover, platform commission.
The key difference: long-term
Here is the data point that changes the entire equation.
Residential rentals longer than 30 days are normally exempt from VAT and from the 12.75% withholding, provided they are handled as housing leases and not under a lodging-invoicing scheme. That doesn't mean they're tax-free (rental income is still declared), but the cost structure is notably simpler and more predictable.
Short-term: higher nightly income, variable occupancy, heavy tax and operational load. Long-term: lower but stable monthly income, far less tax and operational friction.
The number your projection doesn't show you
After five years of operating, here is what I learned that no income calculator tells you: real occupancy is almost never projected occupancy. The slow months are real. Turnover wears the property down faster than you expect. And the time you spend managing has a value you rarely put into the equation.
So, short-term or long-term?
It depends on your threshold. If a 5% annual return on your investment satisfies you, well-managed long-term will likely deliver it with far less complexity. If you need 15% or 20% for the investment to make sense, short-term can get there, but only if location, occupancy and management align, and if you accept the tax and operational burden that comes with it.
The numbers are clear. The decision is yours.
If you'd like to review the specific case of your property along the Ruta 27 corridor (Escazú, Santa Ana, Lindora), let's talk. I've been on both sides of this equation.