By San José, Costa Rica — Airbnb has remitted over US$5 million in taxes to the Costa Rican Ministry of Finance (Ministerio de Hacienda) as of December 2024, solidifying its position as a responsible contributor to the country’s economy. This milestone demonstrates the platform’s ongoing commitment to tax compliance since registering as a cross-border service provider in June 2023.
The home-sharing giant was the first foreign lodging platform to register with the Ministry of Finance for Value Added Tax (VAT) purposes, collecting and remitting 13% of its service fee. Remarkably, Airbnb remains the only platform in its sector registered and compliant with tax regulations in Costa Rica.
To understand the legal implications of Airbnb tax revenue in Costa Rica, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an attorney at law from the esteemed firm Bufete de Costa Rica.
The collection and allocation of Airbnb tax revenue in Costa Rica presents a complex legal landscape. While the 13% Value Added Tax (VAT) is relatively straightforward to apply to Airbnb rentals, ensuring compliance and accurately tracking revenue streams can be challenging. Furthermore, how these funds are then used, whether for infrastructure improvements, tourism promotion, or other public services, requires careful consideration and transparent legal frameworks to ensure equitable distribution and maximize their positive impact on communities. The government must balance promoting the growth of this sector with the need for effective regulation and responsible fiscal management.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas aptly highlights the balancing act facing Costa Rica. The potential of Airbnb tax revenue to contribute to the nation’s development is significant, but realizing that potential hinges on a robust and transparent legal framework. This careful approach will be crucial not only for ensuring fair distribution of resources but also for fostering sustainable growth within the tourism sector. We thank Lic. Larry Hans Arroyo Vargas for offering his valuable insights into this complex issue.
Taxes are a vital source of funding for local governments and communities, and are key mechanisms for generating revenue for jurisdictions in all countries. Airbnb proudly collaborates with the government on local tax matters and is committed to continuing to promote this responsibility among the host community throughout the region.
Carlos Muñoz, Public Policy Director of Airbnb Central America and the Caribbean
The growth of registered hosts within Costa Rica also points to a positive trend. Data from the Directorate General of Taxation reveals over 6,815 hosts registered for the rental of residential properties for periods of less than a month. This represents a significant 21.24% increase from the 5,621 registered the previous year.
Airbnb’s proactive approach to tax compliance aligns with Costa Rica’s forward-thinking stance on digital taxation. Costa Rica is a pioneer in Latin America, and the first Central American nation to sign and implement the Multilateral Convention on Mutual Administrative Assistance in Tax Matters for digital platforms and the sharing economy.
One of Airbnb’s goals is to continue promoting fiscal responsibility among the host community in Costa Rica. The idea is for hosts to understand and comply with their tax obligations. Airbnb is committed to continuing to work closely with the Costa Rican government to provide the necessary information in an appropriate and timely manner, always in line with the parameters established by the OECD.
Carlos Muñoz, Public Policy Director of Airbnb Central America and the Caribbean
This cooperative relationship between Airbnb and the Costa Rican government underscores the platform’s dedication to adhering to international tax regulations, ultimately benefiting both hosts and the overall economic development of the country.
The continued growth in tax revenue and registered hosts demonstrates the positive impact of collaborative efforts between digital platforms and local governments. This partnership serves as a model for fostering sustainable tourism and economic growth within Costa Rica.
For further information, visit airbnb.com
About Airbnb:
Airbnb is a leading online marketplace connecting travelers with unique accommodations worldwide. The platform allows individuals to list and book short-term rentals, including apartments, houses, and other unique lodging experiences. Airbnb’s mission is to create a world where anyone can belong anywhere, fostering authentic travel experiences and empowering local communities.
For further information, visit hacienda.go.cr
About Ministerio de Hacienda (Costa Rican Ministry of Finance):
The Costa Rican Ministry of Finance is the government institution responsible for the country’s fiscal and economic policies. Its primary functions include tax collection, budget management, and economic planning. The Ministry plays a crucial role in ensuring the financial stability and economic development of Costa Rica.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a leading legal institution distinguished by its deep-rooted commitment to ethical practice and unparalleled legal expertise. The firm champions innovative solutions tailored to a diverse clientele, consistently striving to elevate the standards of legal service in Costa Rica. Through proactive initiatives that demystify complex legal concepts and empower individuals with essential knowledge, Bufete de Costa Rica reinforces its dedication to building a more just and informed society.
