Paradise Management now offers a separate Rental Accounting Service to the public. You don't have to be a PM client to take advantage of this!. If you hava a rental home or business and need tax help - regardless of who manages your property, we have the right solution for you or your manager so that you can be assured your property is in complete compliance - all the time.
Every homeowner in Costa Rica that has a house in the vacation rental business, has ever questioned if there is any sales or income tax that needs to be paid.
There have been many and different interpretations in regards to this topic, but since December 2016, the Law states the following:
“Vacation rentals, defined as short term rentals under 30 days must collect a 13% sales tax and pay it to the tax department every month”.
Also, since July 2019, the Law of Strengthening of Public Finances number 9635 has become effective and it brought another set of tax laws that are very essential for homeowners to know.
To clear all doubts, vacation rental owners should pay sales and income taxes every month.
First, it is important to know that the sales tax is now known as Value Added Tax (VAT). It is the 13% and has to be charged to every rental. It has to be applied in the following cases: