Authored by the expert who managed and guided the team behind the Costa Rica Property Pack
Everything you need to know before buying real estate is included in our Costa Rica Property Pack
Yes, foreigners can legally own and rent out residential property in Costa Rica in 2026, with very few restrictions compared to other countries in the region.
This guide breaks down every detail you need to know about rental yields, tenant demand, short-term versus long-term strategies, and the real costs of being a landlord in Costa Rica.
We constantly update this blog post to reflect the latest market data, legal changes, and rental trends in Costa Rica.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Costa Rica.
Insights
- Beach destinations like Nosara and Tamarindo in Costa Rica command nightly rates above $350, yet their occupancy hovers around 45% to 51%, meaning operational excellence matters more than location alone.
- Costa Rica's maritime zone law restricts the first 200 meters from the high-tide line, so many "beachfront" rental investments are actually concessions with renewal risk, not standard titled property.
- Long-term net rental yields in Costa Rica typically land between 3.5% and 5%, while short-term rentals can reach 7% net but require 30% to 50% of gross revenue for management, cleaning, and maintenance.
- San Jose's short-term rental market shows 53% occupancy at roughly $59 per night, making it a steadier but lower-revenue option compared to coastal hotspots.
- Costa Rica's lease law references a minimum three-year framework for residential tenants, which limits landlords' flexibility to end tenancies quickly.
- Annual rent increases for housing in Costa Rica are tied to official CPI inflation, so landlords cannot freely raise rents mid-tenancy beyond the government-set percentage.
- Furnished rentals in Costa Rica rent significantly faster due to high demand from expats, corporate relocations, and medium-term tenants arriving without furniture.
- Jaco has over 4,000 active short-term rental listings and only 44% occupancy, signaling strong saturation where differentiation is essential to compete.
- University-adjacent neighborhoods like San Pedro and Sabanilla near UCR offer some of the best rental yields in Costa Rica because purchase prices remain moderate while tenant demand stays constant.
- Costa Rica's tax authority now requires digital platforms to report host income, so the old assumption that Airbnb earnings stay invisible is no longer safe in 2026.
Can I legally rent out a property in Costa Rica as a foreigner right now?
Can a foreigner own-and-rent a residential property in Costa Rica in 2026?
As of early 2026, foreigners can legally buy titled residential property in Costa Rica and rent it out under the same rules as local citizens, with no special permits required for standard ownership.
The most common ownership structure for foreigners holding rental property in Costa Rica is direct freehold title registered with the Registro Nacional, though some investors also use Costa Rican corporations (S.A. or S.R.L.) for liability or estate planning purposes.
The single biggest restriction foreigners face is the maritime zone rule under Law 6043, which means the first 200 meters from the high-tide line is state-controlled land available only through concessions, not normal titled ownership, and this directly affects many "beachfront" rental investments.
If you're not a local, you might want to read our guide to foreign property ownership in Costa Rica.
Do I need residency to rent out in Costa Rica right now?
Costa Rica does not require residency to own or rent out property, so non-resident foreigners can legally collect rental income while living abroad.
However, you will need a Costa Rican tax identification number (cedula juridica or NITE) to properly report rental income and comply with the tax authority's platform reporting requirements that now track Airbnb-style earnings.
A local Costa Rican bank account is not strictly required since many owners collect rent via international transfers or platforms, but having one reduces friction for paying utilities, HOA fees, and property managers in colones.
Managing a Costa Rica rental entirely remotely is practically feasible and common, especially when you hire a local property manager to handle tenant issues, maintenance, and guest turnovers for short-term rentals.
Thinking of buying real estate in Costa Rica?
Acquiring property in a different country is a complex task. Don't fall into common traps – grab our guide and make better decisions.
What rental strategy makes the most money in Costa Rica in 2026?
Is long-term renting more profitable than short-term in Costa Rica in 2026?
As of early 2026, short-term rentals in Costa Rica's beach destinations can generate higher gross revenue, but long-term rentals in the Greater Metropolitan Area often deliver more consistent net returns with far less operational stress.
A well-managed short-term rental in Tamarindo might gross $15,000 to $25,000 per year (roughly 7.4 to 12.3 million colones or 14,000 to 23,000 euros), while a comparable long-term rental in Escazu typically generates $12,000 to $18,000 (5.9 to 8.8 million colones or 11,000 to 16,500 euros), but the short-term option requires 30% to 50% of revenue for management and turnover costs.
Short-term renting financially outperforms long-term in Costa Rica primarily in proven tourist nodes like Nosara, Tamarindo, and Manuel Antonio, where properties with pools, modern design, and professional management can achieve nightly rates above $300.
What's the average gross rental yield in Costa Rica in 2026?
As of early 2026, the average gross rental yield for residential properties in Costa Rica ranges from 5.5% to 7.5% for long-term rentals, with well-run short-term units in tourist zones potentially reaching 9% to 11% gross revenue yield before heavy operating costs.
The realistic low-to-high gross rental yield range covering most Costa Rica residential properties runs from about 4.5% in premium expat neighborhoods like Escazu to around 9% in high-demand, moderately-priced areas near universities or corporate corridors.
Studios and one-bedroom apartments near employment hubs or universities in Costa Rica typically achieve the highest gross yields because their lower purchase prices relative to rent create better return ratios than larger family homes.
By the way, we have much more granular data about rental yields in our property pack about Costa Rica.
What's the realistic net rental yield after costs in Costa Rica in 2026?
As of early 2026, the average net rental yield after all costs for long-term residential properties in Costa Rica falls between 3.5% and 5%, while short-term rentals can achieve 3% to 7% net depending heavily on management efficiency and occupancy rates.
The realistic low-to-high net rental yield range that most Costa Rica landlords actually experience runs from around 2.5% for high-maintenance beach properties with significant vacancy to roughly 6% for well-positioned urban units with stable tenants.
The three main cost categories that reduce gross yield to net yield specifically in Costa Rica are condominium HOA fees (which often run $100 to $250 monthly due to security and amenity costs), property management fees (8% to 12% for long-term, 15% to 25% for short-term), and the higher maintenance reserves required in humid coastal climates where salt air, pools, and AC systems demand constant attention.
You might want to check our latest analysis about gross and net rental yields in Costa Rica.
What monthly rent can I get in Costa Rica in 2026?
As of early 2026, typical monthly rents in Costa Rica's Greater Metropolitan Area run approximately $600 to $800 (295,000 to 390,000 colones, or 550 to 730 euros) for a studio, $800 to $1,100 (390,000 to 540,000 colones, or 730 to 1,010 euros) for a one-bedroom, and $1,100 to $1,600 (540,000 to 785,000 colones, or 1,010 to 1,470 euros) for a two-bedroom apartment.
A realistic entry-level monthly rent for a decent studio in Costa Rica starts around $550 to $700 (270,000 to 345,000 colones, or 505 to 640 euros) in neighborhoods like Curridabat or Heredia, though prime areas like Escazu push above $800.
A typical mid-range one-bedroom apartment in Costa Rica rents for $750 to $1,000 (370,000 to 490,000 colones, or 690 to 920 euros) in established neighborhoods with good transport links and security.
A mid-to-high range two-bedroom apartment in Costa Rica commands $1,200 to $1,700 (590,000 to 835,000 colones, or 1,100 to 1,560 euros), with newer condos in Santa Ana or Lindora reaching the top of this range.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Costa Rica.
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 real numbers I should budget for renting out in Costa Rica in 2026?
What's the total "all-in" monthly cost to hold a rental in Costa Rica in 2026?
As of early 2026, the total all-in monthly cost to hold and maintain a typical long-term rental condo in Costa Rica's Greater Metropolitan Area runs approximately $250 to $500 (125,000 to 245,000 colones, or 230 to 460 euros), excluding mortgage payments and property management percentage fees.
The realistic low-to-high monthly holding cost range for most standard Costa Rica rental properties spans from about $200 (100,000 colones, 185 euros) for a simple apartment with low HOA fees to $800 or more (390,000 colones, 735 euros) for a beach house with pool maintenance, landscaping, and higher insurance premiums.
The single largest contributor to monthly holding costs in Costa Rica is typically the condominium HOA fee, which averages $100 to $250 per month and covers security guards, common area maintenance, pools, and building insurance that are standard in the developments foreigners commonly purchase.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Costa Rica.
What's the typical vacancy rate in Costa Rica in 2026?
As of early 2026, the typical vacancy rate for long-term rental properties in Costa Rica's Greater Metropolitan Area runs between 8% and 12%, while beach and lifestyle markets experience higher vacancy of 12% to 20% due to greater seasonality and tenant turnover.
A Costa Rica landlord should realistically budget for one to one and a half months of vacancy per year in urban areas, or up to two and a half months in beach markets, because the expat and tourist-driven tenant base creates more frequent moves than you would see in a purely local market.
The main factor causing vacancy rates to vary across Costa Rica neighborhoods is proximity to stable employment centers, with areas near free trade zones, hospitals, and universities in the GAM showing consistently lower vacancy than resort-dependent coastal towns.
The highest tenant turnover and vacancy in Costa Rica typically occurs in April and May, just after the dry season ends, when short-term expat leases expire and before the next wave of corporate relocations arrives in the second half of the year.
We have a whole part covering the best rental strategies in our pack about buying a property in Costa Rica.
Get fresh and reliable information about the market in Costa Rica
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
Where do rentals perform best in Costa Rica in 2026?
Which neighborhoods have the highest long-term demand in Costa Rica in 2026?
As of early 2026, the three neighborhoods with the highest overall long-term rental demand in Costa Rica are Escazu, Santa Ana, and Rohrmoser in the Greater Metropolitan Area, where jobs, services, and transport links create a deep pool of tenants year-round.
Families with children looking for long-term rentals in Costa Rica concentrate most heavily in Santa Ana, Lindora, and Curridabat (particularly Granadilla), where access to bilingual schools, gated communities, and green spaces drives consistent demand.
Students seeking long-term rentals in Costa Rica cluster around San Pedro, Barrio Dent, and Sabanilla near the University of Costa Rica (UCR), as well as Heredia center and Mercedes near the National University (UNA), where walkability and bus routes matter most.
Expats and international professionals renting long-term in Costa Rica prefer Escazu, Santa Ana, and the La Sabana area of San Jose because these neighborhoods offer walkable services, English-speaking infrastructure, and the "easy living" amenities that reduce adjustment friction.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Costa Rica.
Which neighborhoods have the best yield in Costa Rica in 2026?
As of early 2026, the three neighborhoods with the best rental yields in Costa Rica are San Pedro and Sabanilla near UCR, parts of the Heredia and Belen corporate corridor, and mid-market Curridabat zones that offer strong rents without luxury price premiums.
The estimated gross rental yield range for these top-yielding Costa Rica neighborhoods runs from approximately 7% to 9%, compared to the 4.5% to 6% yields typical in premium expat areas like central Escazu where purchase prices are much higher.
What allows these neighborhoods to achieve higher yields than others in Costa Rica is the combination of steady institutional tenant demand (universities, corporations, hospitals) with property prices that have not yet been bid up by the international buyer premium that compresses returns in more famous locations.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Costa Rica.
Where do tenants pay the highest rents in Costa Rica in 2026?
As of early 2026, the three neighborhoods where tenants pay the highest long-term rents in Costa Rica are Escazu (particularly the central and west zones), Santa Ana and Lindora, and the Rohrmoser and La Sabana areas of San Jose.
A typical monthly rent for a standard two-bedroom apartment in these premium Costa Rica neighborhoods ranges from $1,400 to $2,200 (685,000 to 1,080,000 colones, or 1,285 to 2,020 euros), with newer luxury condos in prime Escazu locations exceeding $2,500 per month.
What makes these neighborhoods command the highest rents in Costa Rica is their concentration of multinational company offices, diplomatic residences, and private hospitals, which creates a tenant pool with corporate housing allowances willing to pay significant premiums for security, walkability, and proximity to international schools.
The tenant profile in Costa Rica's highest-rent neighborhoods typically includes senior executives on corporate relocation packages, embassy staff, medical tourists staying for extended treatments, and business owners who prioritize time savings and security over cost optimization.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Costa Rica. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Costa Rica in 2026?
What features increase rent the most in Costa Rica in 2026?
As of early 2026, the top three features that increase monthly rent the most in Costa Rica are reliable high-speed internet (essential for the remote work population), air conditioning in bedrooms (critical in the Central Valley's warming climate and mandatory at the coast), and secure covered parking with 24-hour security guards.
The single most valuable feature, air conditioning in a property that previously lacked it, can add a rent premium of 10% to 20% in Costa Rica's Greater Metropolitan Area and is essentially mandatory for competitive beach rentals where tenants will not even consider units without it.
One commonly overrated feature that Costa Rica landlords invest in but tenants rarely pay extra for is high-end kitchen appliances or luxury countertops, because most renters prioritize functional space and reliable utilities over aesthetic finishes they could find in a hotel.
One affordable upgrade that provides strong return on investment for Costa Rica landlords is installing a backup water tank (tanque de reserva), which costs a few hundred dollars but eliminates a common frustration during dry season pressure drops and makes your property notably more attractive than competitors without one.
Do furnished rentals rent faster in Costa Rica in 2026?
As of early 2026, furnished apartments in Costa Rica typically rent two to four weeks faster than unfurnished ones because the tenant pool includes many expats, corporate relocations, and medium-term visitors who arrive without furniture and want to move in immediately.
Furnished rentals in Costa Rica command a rent premium of roughly 15% to 30% over comparable unfurnished units, though landlords should budget for higher wear-and-tear and periodic furniture replacement that partially offsets this premium over time.
Get to know the market before you buy a property in Costa Rica
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
How regulated is long-term renting in Costa Rica right now?
Can I freely set rent prices in Costa Rica right now?
When signing a new lease in Costa Rica, landlords have full freedom to negotiate and set the initial rent price at any level the market will bear, with no government caps or approval requirements on starting rents.
However, once a tenant is in place, rent increases during the tenancy in Costa Rica are regulated and tied to the official Consumer Price Index (CPI) inflation rate, with the Ministry of Housing (MIVAH) setting the allowable annual adjustment percentage, which means landlords cannot freely raise rents beyond this structured limit.
What's the standard lease length in Costa Rica right now?
The standard lease length for residential rentals in Costa Rica is typically one to three years in practice, though the lease law references a minimum three-year framework for tenant protections and notice requirements, which means landlords cannot easily terminate tenancies before this period without cause.
Costa Rica's lease law does not set a clear nationwide cap on security deposits, but the standard market practice is to require one month's rent (approximately $800 to $1,500, or 390,000 to 735,000 colones, or 735 to 1,375 euros for typical apartments), with some landlords requesting additional deposits for pets or higher-risk tenant profiles.
At the end of a tenancy in Costa Rica, the security deposit must be returned minus any legitimate deductions for unpaid rent, damages beyond normal wear and tear, or outstanding utility bills, and disputes over deposit returns are handled through Costa Rica's civil court system if the parties cannot agree.
We made this infographic to show you how property prices in Costa Rica compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How does short-term renting really work in Costa Rica in 2026?
Is Airbnb legal in Costa Rica right now?
Airbnb-style short-term rentals are generally legal in Costa Rica and are not banned at the national level, though they operate in a regulatory gray zone that intersects with tax compliance, platform reporting rules, and varying municipal permit requirements.
Whether you need a license depends on your municipality, as some cantons in Costa Rica require a commercial patent (patente) for tourist-style rental operations, and you should check with the specific local government where your property is located since requirements like those documented by the San Jose municipality can differ significantly by area.
Costa Rica does not have a simple nationwide cap on the number of nights you can rent short-term per year like some European cities do, so your constraint is more likely to be municipal compliance, tax registration, and (if applicable) your condominium's internal rules on short-term guests.
The most common penalty for operating a non-compliant short-term rental in Costa Rica is fines from the tax authority for unreported income, as Hacienda's platform reporting frameworks now make Airbnb earnings increasingly visible, and some municipalities may also issue citations for operating without a required commercial patent.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Costa Rica.
What's the average short-term occupancy in Costa Rica in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Costa Rica ranges from approximately 44% to 53% depending on location, with San Jose showing around 53% and beach destinations like Tamarindo, Nosara, and Jaco ranging from 44% to 51%.
The realistic low-to-high occupancy range that most Costa Rica short-term rentals experience runs from about 35% for poorly positioned or undifferentiated listings to 65% or higher for top-performing properties with excellent reviews, professional photography, and dynamic pricing strategies.
The highest occupancy months for short-term rentals in Costa Rica are December through April (the dry season), when North American and European tourists arrive in large numbers, and the Christmas to Easter period typically sees near-full bookings at premium rates in beach destinations.
The lowest occupancy months for Costa Rica short-term rentals are September and October during the rainiest part of the year, when tourism drops significantly and even well-managed properties may see occupancy fall below 30% unless they attract domestic travelers or long-stay digital nomads at discounted rates.
Finally, please note that you can find much more granular data about this topic in our property pack about Costa Rica.
What's the average nightly rate in Costa Rica in 2026?
As of early 2026, the average nightly rate for short-term rentals in Costa Rica varies dramatically by location, from approximately $59 (29,000 colones, 54 euros) in San Jose to $318 to $389 (156,000 to 190,000 colones, 292 to 357 euros) in premium beach destinations like Nosara, Tamarindo, and Jaco.
The realistic low-to-high nightly rate range covering most Costa Rica short-term listings runs from about $40 (20,000 colones, 37 euros) for basic studios in less touristy areas to over $500 (245,000 colones, 460 euros) per night for luxury villas with pools and ocean views in prime locations.
The typical nightly rate difference between peak season (December to April) and off-season (September to October) in Costa Rica beach markets can be 30% to 50%, meaning a property commanding $400 per night in February might only achieve $200 to $280 during the rainy months without significant discounting.
Is short-term rental supply saturated in Costa Rica in 2026?
As of early 2026, short-term rental supply in Costa Rica is moderately to heavily saturated in the most established beach markets, with AirDNA showing over 4,000 active listings in Jaco and over 3,600 in Tamarindo, which explains why occupancy rates remain below 50% despite strong tourist demand.
The current trend in Costa Rica short-term rental listings is continued growth, with new inventory still entering the market particularly in emerging areas, though the rate of growth has slowed compared to the post-pandemic surge as investors become more aware of the competitive landscape.
The most oversaturated neighborhoods for short-term rentals in Costa Rica are central Jaco, Tamarindo's main strip, and the heavily developed parts of Manuel Antonio, where hundreds of similar listings compete intensely and only properties with outstanding reviews, professional management, and distinctive amenities can maintain strong occupancy.
Neighborhoods in Costa Rica that still have room for quality short-term rental supply include parts of Nosara (where premium positioning matters more than price competition), less developed beaches like Samara and Dominical, and niche areas of the Central Valley targeting business travelers or medical tourists near private hospitals.
Don't lose money on your property in Costa Rica
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Costa Rica, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Costa Rica Law 6043 (Maritime Zone) | The national law that defines coastal land restrictions and concession rules. | We used it to explain the key exception foreigners face with beachfront property. We flagged when a "rental investment" is actually a concession with extra risks. |
| Costa Rica Law 7527 (Leases Law) | The legal text governing most residential long-term leases in Costa Rica. | We used it to explain rent increase rules and the three-year minimum framework. We also showed why tourism rentals can fall outside the long-term tenant protections. |
| Ministry of Housing (MIVAH) | Official government guidance on housing rent adjustments in Costa Rica. | We used it to translate the law into practical annual rent increase rules. We ensured accuracy as of January 2026 when these adjustments matter most. |
| Registro Nacional de Costa Rica | The official body that records titled property ownership and liens. | We used it to explain how title verification works in Costa Rica. We recommended due diligence steps specific to rental investors. |
| Global Property Guide | A long-running property data publisher with consistent yield methodology. | We used it as the backbone for gross yield estimates and city-level ranges. We adjusted to realistic net yields using Costa Rica-specific cost stacks. |
| AirDNA (San Jose, Tamarindo, Nosara, Jaco) | A major short-term rental analytics provider based on active listing performance. | We used it for occupancy and nightly rate baselines across Costa Rica markets. We compared short-term versus long-term strategies with real 2026 numbers. |
| Banco Central de Costa Rica (BCCR) | The official source for Costa Rica's reference exchange rates. | We used it to convert colones to dollars and euros consistently. We explained currency risk for landlords with mixed currency cashflows. |
| PwC Tax Summaries (Costa Rica) | A major accounting firm's standardized VAT and tax framework summary. | We used it to corroborate the 13% VAT rate and how it applies to services. We used it as a sanity check for rental-adjacent costs and invoicing. |
| Ministry of Finance (Hacienda) | Official communication about VAT on cross-border digital services and platforms. | We used it to explain where VAT shows up for platform-mediated rentals. We anchored the "platform economy" compliance discussion for 2026. |
| OECD Model Reporting Rules | The international reference framework behind platform reporting rules globally. | We used it to explain why platforms now report host income to tax authorities. We connected Costa Rica's rules to a broader global compliance trend. |
We have made this infographic to give you a quick and clear snapshot of the property market in Costa Rica. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.