Rental Properties: Mandatory registration for non-traditional lodgings (Part II)

Companies that are intermediaries, such as Airbnb, are also required to follow the regulations of Law N. 20865, including paying the taxes due if the user's payment is made through the service platform.

As mentioned in the previous email, the provisions of the «Law for the Regulation of Non-Traditional Accommodation through Digital Platforms (N. 20 865)», rental properties in Costa Rica for tourist visits must register with the Costa Rican Institute of Tourism. (TIC)

Companies that are intermediaries, such as Airbnb, are also required to follow the regulations of Law N. 20865, including paying the taxes due if the user’s payment is made through the service platform.

There are severe penalties for failing to register and follow the law, including being considered an illegal commercial operation and the payment of fines and possible sanctions.

Companies who take advantage of the ease of registering online will go to www.ict.go.cr and duly complete the registration form.

The ICT will have ten working days to validate the information in the registration application

Within the ten days, issue a resolution of registration via email. This email will also include a user code.

The Director of Tourism Management, Gustavo Alvarado, pointed out that «it is the first time that mandatory registration of companies has been established before the ICT, and it will be easily accessible for the registration of those interested. Likewise, it will provide support and follow-up to what is established by law so that the companies that register comply with the approved regulations and tourists feel more confident when using non-traditional lodging services.»

It is interesting to note that surveys conducted at CR airports by the ICT, pre-pandemic, showed that 9.2% of tourists were using non-traditional or private lodging rentals.

It is essential to fully understand the legal implications of renting property to tourists, even if using a platform such as Airbnb or VRBO. For assistance, we are at your service at info@gmattorneyscr.com

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