Costa Rica counted more than 360,000 rented homes in 2025, yet only 32,373 taxpayers are registered for the tax on rental income. That mismatch, flagged by former Finance Ministry officials, is a useful reality check for anyone renting long-term in the country or considering buying a place to let.
The registered filer count has barely budged since the tax launched under the 2018 fiscal reform: 32,291 filers in 2020, just 82 more by the end of 2025. Meanwhile, the number of rented homes grew about 25% over five years, and the survey found 120,500 people reporting rental income of some kind — though that includes things like car rentals. Inflation-adjusted collections have stayed flat too, at roughly ₡72.5–77.5 billion (about $157–168 million) a year, just 3.1% of total income tax revenue.
Nobody claims 300,000-plus landlords are all dodging the taxman. One owner can rent several homes, some income is declared under corporate profits tax instead, and the household survey and tax registry measure different things. But Fernando Rodríguez, a former vice minister of revenue now at the National University, says the registry is simply not plausible given the market's size. His explanation: residential landlords can stay invisible because tenants rarely need an invoice — unlike businesses, which demand receipts to claim VAT credits.
Former finance minister Elian Villegas calls the rental market opaque and wants a full review, including capital gains on property sales. The catch, Rodríguez notes, is that enforcement is expensive — chasing tourist-rental hosts means monitoring booking platforms — and competes with audits that recover bigger sums.
For travellers and would-be landlords, the rules themselves are clear enough. Anyone earning rent from Costa Rican property must register and declare it, Costa Rican or foreign. The rate is 15% of rent after a standard 15% expense deduction — effectively about 12.75% of gross rent — filed monthly on the TRIBU-CR platform by the 15th of the following month. Rents up to 1.5 base salaries (currently ₡693,300, about $1,500 a month) are exempt from VAT but not income tax. Above that, tenants pay 13% VAT on the full amount, which the landlord remits.
Why should a traveller care? If you're renting an apartment for a season, your landlord's compliance status can affect whether you get a proper receipt — and whether VAT is correctly applied. And if you're eyeing a condo to rent out on the side, know that the system runs on self-assessment, the OECD estimates 43% of required invoices go unissued, and both the OECD and IMF have flagged Costa Rica's narrow tax base. The grey zone is real, but the legal obligations are unambiguous — and audits, while selective, do happen.
