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Costa Rica's Airbnb market offers strong potential for investors willing to navigate seasonal variations and regulatory requirements. Premium properties in prime beach destinations like Tamarindo and Nosara can achieve net yields of 4-8% annually, though success depends heavily on location, property type, and professional management.
As of September 2025, the Costa Rican short-term rental market has tightened regulations with mandatory ICT registration and enhanced tax enforcement, making compliance crucial for sustainable profitability.
If you want to go deeper, you can check our pack of documents related to the real estate market in Costa Rica, based on reliable facts and data, not opinions or rumors.
Two- and three-bedroom homes with pools in Guanacaste Province typically generate the highest Airbnb returns in Costa Rica.
Net yields range from 4-8% annually for well-managed properties after accounting for management fees (20-35%), taxes (13% VAT plus income tax), and seasonal occupancy fluctuations.
| Key Metric | Best-Performing Properties | Median Properties |
|---|---|---|
| Property Type | 2-3 bedroom homes with pools | Standard apartments/condos |
| Prime Locations | Tamarindo, Nosara, Playa Flamingo | San José, secondary beach towns |
| Purchase Price Range | $550,000 - $1.7M | $350,000 - $700,000 |
| Peak Season Rate | $459 - $864/night | $215 - $445/night |
| Annual Gross Income | $82,728 (top 25%) | $35,916 (median) |
| Operating Costs | 40-55% of gross revenue | 45-60% of gross revenue |
| Net Yield | 6-8% | 4-6% |
What types of properties in Costa Rica tend to perform best on Airbnb?
Entire homes and villas with 2-3 bedrooms consistently outperform other property types on Airbnb in Costa Rica.
Properties that accommodate 4-8 guests generate the highest revenue because they attract both family groups and friend gatherings willing to pay premium rates. Homes with private pools command significantly higher nightly rates, with pool access being one of the most requested amenities by guests.
Modern amenities are essential for top performance: high-speed internet, air conditioning, and dedicated parking spaces. Luxury properties in prime locations frequently offer private pools, security systems, and panoramic ocean, mountain, or jungle views that justify premium pricing.
It's something we develop in our Costa Rica property pack.
Condos and apartments typically underperform compared to standalone homes, though luxury condos with resort-style amenities can still achieve solid returns in the right locations.
Which neighborhoods or regions are currently the most in-demand for short-term rentals?
Guanacaste Province's Pacific Coast dominates Costa Rica's short-term rental market as of September 2025.
Tamarindo leads with the highest occupancy rates and strongest average daily rates due to limited inventory and consistent tourist demand. The town's established infrastructure, restaurants, and proximity to Liberia International Airport make it particularly attractive to international visitors.
Nosara represents the luxury segment with properties commanding $2,000-$3,000 per square meter, attracting high-spending wellness tourists and digital nomads. Playas del Coco offers more affordable entry points while maintaining strong rental demand.
The greater Guanacaste "Gold Coast" including Playa Flamingo provides excellent investment opportunities with growing tourist infrastructure. Central Valley locations like EscazĂş and Santa Ana serve primarily long-term rental markets rather than short-term vacation stays.
San José attracts business travelers and digital nomads but generates lower nightly rates compared to beach destinations.
How much does the average property in those areas cost to buy, depending on size and amenities?
| Location | Cost per m² | Average Home Price | Luxury Range |
|---|---|---|---|
| Tamarindo Coast | $1,400-$1,800 | $550,000 | Up to $1.7M |
| Nosara | $2,000-$3,000 | $500k-$1M | Up to $8M |
| Playas del Coco | $1,200-$1,600 | $450,000 | $1.2M-$2M |
| Playa Flamingo | $1,500-$2,200 | $600,000 | $1.5M-$3M |
| San José Center | Up to $1,724 | $400,000 | $800k-$1.2M |
Premium beachfront properties with ocean views command the highest prices, while properties requiring major renovations or lacking modern amenities sell at significant discounts to these averages.
What are the typical nightly rates for comparable listings in the same location and property type?
Tamarindo's Airbnb market shows dramatic rate variations based on property quality and seasonal timing.
Best-in-class properties (top 10%) achieve median rates of $864+ per night, with peak season rates reaching $459 and low season dropping to $328. Strong-performing properties (top 25%) maintain $445 median rates with consistent $444 peak season pricing.
Median properties generate $215 nightly rates with seasonal fluctuations between $333-$444. Entry-level properties (bottom 25%) average $132 per night with limited seasonal premium.
Nosara commands premium rates 20-40% higher than Tamarindo due to its exclusive positioning and limited inventory. Playas del Coco typically prices 15-25% below Tamarindo rates while maintaining strong occupancy.
Properties with pools, ocean views, and luxury amenities can charge 50-100% premiums over comparable properties without these features.
What's the average occupancy rate in high season and low season for these properties?
| Property Tier | High Season (Feb/Mar) | Low Season (Sep/Oct) | Annual Average |
|---|---|---|---|
| Best-in-class (Top 10%) | 82% | 35.8% | 59-61% |
| Strong (Top 25%) | 66%+ | 35.8% | 45-55% |
| Median Properties | 45% | 33.6% | 45% |
| Below Average | 35% | 25% | 35% |
| Entry-level | 30% | 20% | 30% |
High season runs from December through April, with February and March showing peak occupancy rates. Low season spans September and October when occupancy drops dramatically across all property tiers.
Professional property management and dynamic pricing strategies help top-tier properties maintain higher occupancy rates during challenging periods.
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How much gross rental income can you realistically expect in a year?
Median Airbnb properties in Tamarindo generate $35,916 in annual gross rental income as of September 2025.
Top-performing properties (top 25%) achieve $82,728 yearly gross income, with monthly revenues ranging from $6,894 during peak periods to significantly lower amounts during September-October low season. Peak season months can generate up to $8,176 monthly for median properties.
Best-in-class properties (top 10%) often exceed $100,000 annual gross income, particularly luxury homes with premium amenities and prime locations. Entry-level properties typically generate $20,000-$30,000 annually depending on management quality and market positioning.
Nosara properties command 20-30% higher gross incomes than comparable Tamarindo properties due to premium positioning. Playas del Coco properties typically generate 10-15% less than Tamarindo averages but offer better affordability for initial investment.
It's something we develop in our Costa Rica property pack.
What are the main operating expenses, including cleaning, maintenance, utilities, and management fees?
Property management fees represent the largest operating expense at 20-35% of gross income, with prime tourist areas commanding higher percentages.
Maintenance and repairs typically consume 10-12% of revenue, covering pool cleaning, landscaping, appliance repairs, and property upkeep. Utilities including internet, water, and electricity range from 7-25% depending on property size and guest usage patterns.
Cleaning costs are often passed to guests through cleaning fees, though owners pay for deep cleaning and maintenance cleaning between bookings. Platform fees to Airbnb and other booking sites range from 3-20% depending on booking channel mix.
Additional expenses include HOA fees for condo properties, insurance premiums (highly recommended for liability protection), and property supplies for guest amenities. Total operating costs typically range from 40-55% of gross rental income for professionally managed properties.
Professional management becomes essential in Costa Rica due to language barriers, local regulation compliance, and the need for rapid guest response times.
How do taxes, insurance, and local service charges affect the bottom line?
Costa Rica imposes a 13% Value Added Tax (VAT) on all stays under 30 days, collected monthly and remitted to tax authorities.
Progressive income tax applies to rental profits: the first 3.8 million colones ($7,600) annually is exempt, followed by 10-25% tax rates on higher income brackets. ICT (Tourism Institute) registration is mandatory for short-term rentals, with new digital tax reporting requirements enforced since 2025.
Property transfer taxes of 1-2.5% apply at purchase as a one-time cost. Annual property taxes remain low at approximately 0.25% of registered property value, though this is separate from rental income taxes.
Insurance premiums vary significantly but are essential for liability protection and property coverage. Comprehensive coverage typically costs 0.5-1.5% of property value annually.
Stamp duties and legal fees add approximately 3-4% to total purchase costs. Non-compliance with tax reporting can result in frozen payments from booking platforms and significant penalties.
What's the net yield after deducting all costs from the gross income?
Well-managed Airbnb properties in prime Costa Rican locations typically achieve net yields of 4-8% annually after all expenses and taxes.
Operating costs consume 40-55% of gross income for professionally managed properties. After deducting the 13% VAT and progressive income taxes, most investors see net returns in the 4-8% range relative to their initial property investment.
A median property generating $35,916 gross income with 45% operating costs yields approximately $19,754 before taxes. After VAT and income tax obligations, net yield typically falls to 4-6% of the original purchase price for most buyers.
Top-tier properties with superior management can achieve 6-8% net yields, while poorly managed or incorrectly positioned properties may see yields below 4%. Properties requiring significant capital improvements often see reduced first-year yields.
Higher-priced luxury properties sometimes achieve lower percentage yields despite higher absolute returns due to premium purchase prices.
Would renting long-term instead of short-term be more profitable in this location?
Short-term rentals generate higher gross income but require significantly more management effort and carry greater seasonal risk in Costa Rica.
Long-term rentals offer more stability with consistent monthly income, lower management costs, and reduced maintenance requirements. San José, Escazú, and non-tourist areas favor long-term rental strategies with steady demand from local professionals and expats.
Prime beach destinations like Tamarindo and Nosara strongly favor short-term strategies due to tourism premiums that can double or triple long-term rental rates. However, short-term rentals face seasonal occupancy challenges and higher operational complexity.
Some investors employ hybrid strategies, switching between short-term and long-term based on seasonal demand patterns. This approach maximizes revenue during peak tourist seasons while ensuring income during low periods.
It's something we develop in our Costa Rica property pack.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Costa Rica versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are the current local regulations, licensing requirements, and restrictions for Airbnb in Costa Rica?
All short-term rental properties must register with Costa Rica's Tourism Institute (ICT) for any stays between 24 hours and one year as of September 2025.
New digital tax reporting requirements mandate that platforms like Airbnb report host earnings and transaction details directly to tax authorities. Unregistered hosts face frozen payments and cannot legally operate short-term rentals.
The mandatory 13% VAT must be charged and collected on all short-term stays, with monthly remittance to tax authorities. Progressive income tax applies to net rental profits with strict enforcement and substantial penalties for non-compliance.
Professional liability insurance is highly recommended and required for certain license types. Property owners must maintain detailed records of all rental income, expenses, and guest information for tax compliance.
Local municipalities may impose additional requirements including noise restrictions, parking regulations, and neighborhood density limits for short-term rentals. Compliance failures can result in fines, property seizures, or permanent operating bans.
Are there any upcoming changes in tourism trends or laws that could impact future profitability?
Tourism in Costa Rica reached 2.75 million visitors in 2023 with continued growth expected through 2025-2026, particularly in coastal destinations.
Regulatory oversight is increasing significantly with more stringent tax reporting and registration requirements beginning in 2025-2026. Professional property management is becoming essential rather than optional due to compliance complexity.
Digital nomad visa programs and remote work trends are driving demand for medium-term stays (1-6 months), creating opportunities for flexible rental strategies. The government is promoting sustainable tourism which may favor eco-friendly properties and limit development in sensitive areas.
Enhanced tax enforcement capabilities mean owners must be extremely diligent about compliance to avoid penalties, payment freezes, or operating bans. Properties that cannot demonstrate proper registration and tax compliance face increasing risks.
Seasonal dependency remains high with peak travel concentrated in December-April periods, though shoulder seasons are showing gradual improvement as Costa Rica diversifies its tourism appeal beyond traditional beach holidays.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Premium, well-managed homes in beach destinations—especially Tamarindo, Nosara, and Guanacaste beach towns—currently yield the highest returns on Airbnb in Costa Rica.
Net yields for experienced operators typically range from 4-8% annually after accounting for all costs, taxes, and seasonality, with compliance to evolving regulations being critical for sustainable profitability.
Sources
- Costa Rica Real Estate Trends
- OSA Tropical Properties - Airbnb Investment Strategy
- AirROI Tamarindo Market Report
- Urban Realty Toronto - Costa Rica Investment Trends
- Coldwell Banker Samara - Top Investment Regions
- Drink Tea Travel - Buying Property Guide
- Green CR - Tax Compliance Guide
- OSA Property Management - Tax Landscape Update
- ERP Lawyers - Airbnb Regulations
- Investing Costa Rica - Vacation Rental Insights