What short-term rental owners in Tamarindo and along the Guanacaste coast should check before the next knock on the door.
By Andrea Jara, Senior Associate at GM Attorneys
The vacation-rental market in Guanacaste is booming, and the rules behind it are changing just as fast.
The house is ready. The photos are beautiful. The Airbnb or Vrbo listing is live, and reservations are coming in. For property owners in Tamarindo, Flamingo, and other coastal communities in Santa Cruz, short-term rentals have become a popular way to generate income from a vacation home or investment. But is your rental operation ready from a regulatory standpoint?
Costa Rica has a national legal framework for short-term rentals, under Law No. 9742. What most owners don’t yet know is that municipalities are beginning to enforce the local licensing side of that framework too. We’re still seeing relatively few cases where the Municipalidad de Santa Cruz has formally required an owner to obtain a patente (local business license) for a short-term rental, but that gap between limited enforcement and full enforcement tends to close quickly once a municipality builds the systems to check for it. Owners who get ahead of it now will be better positioned than those who wait for a notice to arrive.
Not every short-term rental faces the same requirements. Whether a specific property needs a patente can depend on its location and permitted use, the nature and frequency of the rental activity, and how the operation is structured. Given how quickly enforcement is shifting, it’s worth confirming where your property stands rather than assuming otherwise.
Three layers of compliance
Most owners think of this as “getting a permit,” but it’s actually three separate layers of registration, each with a different authority.
1. ICT registration. Owners offering non-traditional lodging must register through the ICT’s online platform (ict.go.cr).
2. Tax registration with Hacienda. Rental income from tourists is taxable, and hosts are expected to register, issue electronic invoices, and apply VAT.
3. The municipal patente. It’s the newest requirement, and the one most owners haven’t taken care of yet. Even after ICT registration, you generally still need a patente municipal from the municipality where the property sits; for Tamarindo and Flamingo, that’s the Municipalidad de Santa Cruz.
Don’t forget your HOA
Many developments along the Guanacaste coast, including Tamarindo, have bylaws that restrict, condition, or prohibit short-term rentals. Being fully licensed with the government doesn’t override a valid restriction in your condominium regime.
Myths worth retiring
“Airbnb already handles this for me.” The platform may collect certain taxes, but it does not register your property with the ICT or obtain your municipal patente. That responsibility sits with the owner.
“I own through a corporation, so the rules are different.” That changes who is legally responsible, but it doesn’t exempt the activity from registration.
How enforcement typically starts
Through routine procedures such as property value declarations and owner-update filings, the Municipality may cross-reference property information with listings on platforms like Airbnb, Booking.com, and Vrbo, then issue a formal notice requiring an unregistered owner to regularize. Santa Cruz’s regulations set sanctions for operating without a “patente”, ranging from a formal notice to, in serious or unresolved cases, temporary closure. Addressing the requirements proactively gives owners more clarity and control than waiting until the Municipality identifies the activity and opens an enforcement process.
Getting it right from the start
If you already own a short-term rental in Guanacaste, or you’re evaluating a purchase with rental income in mind, the sensible order of operations is:
1. Confirm whether the property’s title, corporate structure, and condominium regime permit short-term rental use.
2. Register the property with the ICT.
3. Register for tax purposes with Hacienda and set up electronic invoices.
4. Apply for the municipal patente through the Municipalidad de Santa Cruz.
5. Keep these four elements current, since requirements can change over time.
Costs and timelines vary case by case, depending on the property and registration status. Whether you’re already renting or planning to list, I’d be glad to help you review where things stand before enforcement catches up. You can reach us directly at info@gmattorneyscr.com and ajara@gmattorneyscr.com.
Andrea Jara is a Senior Associate at GM Attorneys, advising property owners and investors on real estate matters throughout Guanacaste, based in Tamarindo. More on our blog: gmattorneyscr.com/blog.
Disclaimer: This material is provided exclusively for educational and informational purposes. It does not constitute legal advice, nor does it create an attorney–client relationship. Any legal decision should be made in consultation with a qualified professional who can evaluate the specific facts of your situation. If you require guidance, you are welcome to reach out to our team.