If you rent your home through digital platforms like Airbnb and VRBO, 2026 introduces a new layer of tax mechanics you need to understand. The risk is not that taxes are “high,” it’s that documentation and timing get sloppy and you lose control of your reporting.
Note: This is general information, not tax advice. Coordinate with a qualified Costa Rican accountant and your US CPA.
Key takeaways
- Platforms may withhold 12.75% of gross rental income at the source for bookings processed through OTAs.
- Compliance is mostly a paperwork problem: track what was withheld, match it to payouts, and file correctly.
- Owners should plan for clean documentation to support US foreign tax credit reporting.
What changed in 2026 (high level)
Costa Rica’s tax authority (“Hacienda”) introduced rules that require certain digital booking platforms to withhold tax on qualifying rental income. In practice, this means a portion of your gross revenue can be withheld before you receive the payout.
Why this matters for owners
1) Cash flow and reconciliation
If the platform withholds before payout, your bank deposit will not match your gross booking totals. You need clean monthly reconciliation so you can answer three questions:
- What was the gross amount booked?
- What fees were taken?
- What amount was withheld and remitted?
2) The double-taxation “paperwork trap”
US owners may be able to claim foreign tax credits, but only if the Costa Rica-side withholding is properly documented and your filings are consistent. The money withheld is not useful to you unless it’s traceable.
A practical compliance checklist
- Confirm which channels are subject to withholding (OTA vs direct booking).
- Maintain a monthly ledger of gross bookings, platform fees, withholdings, and net payouts.
- Store the official withholding support documents where your CPA can access them.
- Decide early whether you will optimize for direct bookings (often better fee control and cleaner accounting).
How Signature Collection helps
We reduce reliance on high-fee OTAs by building direct booking demand. When platforms are used, our team supports monthly reconciliation and owner reporting so you have clean, CPA-ready records at year end.
FAQ
Does this apply to direct bookings?
Withholding is generally associated with platforms processing the payment. The exact handling depends on the channel and payment flow.
Is 12.75% my “final” tax rate?
Not necessarily. Treatment can vary by filing and structure; confirm with your professionals.
What’s the safest way to manage this as an absentee owner?
Use a documented process: reconciliation, retained supporting documents, and consistent filings.
Next step
If you want to pressure-test your current setup (channels, reporting, documentation), contact our team for an owner-side compliance review: Contact.