Building a vacation rental in Costa Rica: design, costs, permits and rules

Building a vacation rental in Costa Rica means designing for the amenities guests filter for, budgeting at the finish level a rental needs, and making the house legal twice: once as a building, with CFIA plans and a municipal permit, and once as a rental, with registration at the Costa Rican Tourism Institute (ICT) under Law 9742 and with Hacienda for VAT and income tax. Condominium bylaws, insurance and management complete the picture.

This guide covers the design choices guest data supports, build costs at Decentra's 2026 rates, the ICT and Law 9742 rules, taxes, condominium restrictions, insurance and management. It does not estimate rental income, occupancy or returns for any house. The legal and tax sections are general information, not legal or tax advice.

What do guests book for? Design choices backed by data

Airbnb's list of the amenities guests searched for most worldwide in 2025 puts a pool first, followed by free parking, wifi, air conditioning or heating, a kitchen, a hot tub, a washer or dryer, self check-in, TV and a barbecue grill (Airbnb, August 2026). In an earlier Airbnb survey, 59% of US travellers named air conditioning as a top indoor amenity (Airbnb, August 2018). Property managers and builders in Costa Rica give a similar list: air conditioning in every bedroom, a pool with shaded outdoor living, reliable internet, and bedrooms of similar size with their own bathrooms.

What that means for the plans:

• Pool and outdoor living as one space. Design the pool, a covered terrace and outdoor dining together, in view of the living room. Decentra's pools cost about $2,500 per m² of pool, all in. See how much a pool costs in Costa Rica.
• Bedroom suites of similar standing. Managers commonly recommend ensuite bedrooms of similar size, each with its own air conditioning, so a group is not competing for one good room.
• Parking on the lot. Free parking ranks second on Airbnb's list. On a sloped lot the driveway and parking area are a real budget line, so plan them with the topographic survey.
• Wiring for wifi and self check-in. Run conduit and network cabling to every room, the terrace and the front door during construction, and confirm which internet providers serve the lot before you buy.
• A laundry room and a lockable owner's store. They make turnovers between guests faster and keep your own things out of the rental inventory.
• Durable, easy-clean finishes. Porcelain tile, solid worktops and corrosion-resistant hardware cut maintenance between stays. Our guide to concrete vs steel frame homes on the coast explains what salt air and humidity do to a building.

Accessibility rules that affect the design

Law 9742 requires booking platforms to disclose whether a listing meets Law 7600 on accessibility. Its transitional rules gave registered properties a two-year exemption from the accessibility chapter of Law 7600, after which properties must comply, except where the rental is part of the host's own home (Law 9742, articles 9, 15 and Transitory I). Ask your architect to plan step-free routes, door widths and at least one accessible bathroom from the first sketch; it is far simpler on paper than as a renovation.

How much does it cost to build a vacation rental in Costa Rica?

A rental villa is built like any custom home, so the same rates apply. Decentra's 2026 construction costs, before land, are about $700 per m² for a basic finish, about $1,000 per m² mid-range, $1,000 to $1,200 per m² upper mid-range, $1,500 to $1,800 per m² luxury and $1,800+ per m² ultra luxury. Design and plans add about 5.5% to 6% of construction value under the CFIA fee schedule, and we recommend a contingency of 10% to 15%. A typical build takes 5 to 8 months on site, after design and permits.

Here is how the numbers add up for a hypothetical 280 m² four-bedroom villa with a 35 m² pool, at a luxury finish. It is an illustration, not a quote.

Still to price: the land, the topographic survey and soil study, the municipal permit fee, utility connections, furniture and equipment, landscaping, and VAT if any quote is given before tax. Our guide to the hidden costs of building a house in Costa Rica explains each one.

ICT registration and the Law 9742 short-term rental rules

Law 9742, the framework law for non-traditional lodging (hospedaje no tradicional) and the platforms that sell it, was signed on October 29, 2019. It covers homes, apartments, villas, rooms and similar units rented for stays of at least 24 hours and no more than one year, by hosts who rent habitually and for profit (Law 9742, articles 2 and 3). Under article 8, the host must:

• Register with the ICT through a simplified digital process.
• Register with Hacienda's tax administration (Dirección General de Tributación) as a taxpayer.
• Issue itemized digital invoices.
• Offer suitable services, keep guests safe and undisturbed, and avoid abusive contract terms.

The law also sets minimum services: periodic cleaning, toilet and bathroom facilities, maintenance, basic hygiene and containers for separating waste (article 13). Renting without being in the ICT registry is illegal operation, with sanctions under general law and the involvement of Hacienda, the Ministry of Health and the municipalities (article 14). Short-term rentals may operate in residential zones as long as they do not disturb the area (article 16).

How ICT registration works

Under the regulation, Decree 43154-H-TUR (La Gaceta, October 21, 2021), hosts register online, giving their identity, the property's location and exact address, the number of rooms, the maximum number of guests and contact details. The ICT has 15 calendar days to validate the request and send a resolution with a user code, and hosts must update their data within a month of any change (Decree 43154-H-TUR, article 4 and annex). The ICT's legal head has said the registration itself requires no other permits or licences (El Observador, September 2023). Municipalities are a separate question: many now ask short-term rentals for a commercial licence (patente), and the requirements vary by canton (La República, September 2026). Ask your municipality before the first booking.

Compliance has been low. In April 2024 a legislator said about 44,000 non-traditional lodgings were operating and about 500 were registered with the ICT, and Hacienda counted 117 properties registered and paying taxes at the end of 2023 (El Observador, April 2024). Reform bills are pending. As of November 2026, Delfino's Legislative Assembly tracker lists file 24061 (filed November 2023) as reported out of the tourism committee, and file 23766 (filed May 2023), a full rewrite of Law 9742, as still in committee, with no votes recorded on either. Check the current rules when you register.

Taxes on a vacation rental: VAT and income tax

Not tax advice. Confirm your own position, and whether to own through a company, with a Costa Rican accountant.

According to Costa Rica's Colegio de Contadores Públicos (Delfino, March 2026):

• VAT. Short-term rentals charge 13% VAT to the guest and file a return every month, even in a month with no bookings. VAT paid on expenses directly tied to the rental can be credited when it is backed by an authorized electronic invoice.
• Tax registration. Hosts register with the tax administration under economic activity 5510.9, other short-stay accommodation.
• Income tax, default regime. Rental income is taxed as real estate capital income, with a flat 15% reduction of gross income and no other deductions, for an effective rate of 12.75% on gross income, filed monthly.
• Income tax, profits regime. Alternatively, the traditional regime allows all business expenses supported by electronic invoices and taxes net profit at progressive rates of roughly 5% to 30%, filed once a year. It requires at least one employee registered with the CCSS.

Platforms are part of the picture. Law 9742 requires them to register with Hacienda and to withhold and pay the taxes owed on transactions where withholding applies (article 9), and Airbnb began charging 13% VAT on its own service fees to Costa Rican users on June 1, 2023 (La Nación). Ask your accountant exactly what, if anything, each platform is collecting for you. The house itself also carries the annual property tax and, above the threshold, the luxury home tax; see our luxury home tax guide.

Also see: Building a beach house in Costa Rica: setbacks, salt air and design and Building a home in Reserva Conchal: HOA rules, permits and costs

HOA and condominium restrictions on short-term rentals

If the lot is in a condominium or gated community, its registered bylaws can matter as much as national law. Under Law 7933, the condominium law, owners must use their unit for the use stated in the condominium deed, and every new owner is bound by the existing bylaws (Law 7933, articles 15 and 34). Occupants who are not owners, which includes guests, are responsible for breaking the rules, the owner is jointly liable, and the administration can seek the removal of an occupant who repeatedly breaks them (article 22). Law 9742 also obliges guests to respect condominium rules (article 6).

Before you buy, have your lawyer get the registered bylaws and every amendment, and look for:

• Bans, caps or minimum stays for short-term rentals.
• Guest registration, security and gate procedures.
• Noise rules, pool hours and limits on guests per unit.
• Parking limits and rules on vehicles.
• Design review rules that your plans must pass, and how long review takes.
• Fees, deposits or extra charges for rental units.

Insurance for a rental home

Ask your insurer in writing whether short-term rental use is covered, for the building, the contents and your liability to guests, and keep the answer with the policy. A September 2026 legal column lists an INS policy among the items a short-term rental may need, alongside a Ministry of Health operating permit and CCSS registration, depending on the operation (La República, September 2026). If you employ staff directly, such as a housekeeper or gardener, you are their employer: workers' risk insurance is mandatory for every employer under article 193 of the Labor Code, and wages must be reported to the CCSS (El Observador, October 2019).

Managing a vacation rental from abroad

Most owners who live abroad hire a local manager. Published guides by managers and builders on the Pacific coast commonly quote around 20% to 30% of gross booking revenue for full-service management, with cleaning often charged per turnover. Those are their figures, not ours; get the scope and price in writing. A management agreement should say who:

• sets prices and minimum stays, and screens guests;
• approves repairs, and up to what amount without asking you;
• keeps the ICT registration current and issues electronic invoices;
• prepares the monthly VAT and income tax filings, with your accountant;
• handles emergencies, power or water cuts, and storm damage;
• reports to you each month, and in what detail.

Should you build a vacation rental? Questions to answer first

• Do the land use certificate and any condominium bylaws allow short-term rentals on this lot?
• Will you use the house yourself in the high season, when guests also want it?
• Who will manage it, and have you read their contract?
• Have you budgeted for furniture, equipment, a maintenance reserve and months with few bookings?
• Are you comfortable with monthly VAT and income tax filings, or with paying an accountant to handle them?

We do not estimate income, occupancy or returns for any house. If you use market data from a third party, check who produced it, what it measures and its date.

How Decentra helps

Decentra Homes is an award-winning design-build custom home builder in Costa Rica, founded in 2020, with 50+ residential and commercial projects. Design is led by our CFIA-licensed architect Sergio Cerceño, and we build in concrete first, then hybrid and steel frame. Minimum construction budget $350,000 USD, before land, for new builds.

Before you buy a lot to build a rental, book consulting with a CFIA-licensed engineer and architect with 15 years of experience, at $200 per hour. We do not estimate rental income or returns. Message us on WhatsApp at +506 8733-2930 or through our contact page.