If you’re considering renting property in Costa Rica—whether as a landlord or a tenant—understanding the difference between a vacation rental and a long-term rental is essential. The distinction affects not just the duration and pricing, but also your rights, responsibilities, and even the eviction process.
In this article, I will explain Costa Rica’s rental legislation, when a rental is classified as a temporary tourism lodging (vacation rental), and when it becomes a residential tenancy governed by the Costa Rica Tenancy Law Ley General de Arrendamientos Urbanos y Suburbanos
Costa Rica’s Rental Law Structure
Costa Rica has two distinct legal structures that apply depending on how a rental is classified:
- Vacation Rentals (short-term, commercial use)
- Long-Term Residential Rentals (domicile, governed by the Tenancy Law)
Costa Rica’s Ley General de Arrendamientos Urbanos y Suburbanos applies to long-term residential leases and offers strong protections for tenants—including mandatory lease duration, limited rent increases, and judicial eviction procedures.
What is a Vacation Rental in Costa Rica?
Vacation rentals, often listed on platforms like Airbnb, VRBO, or Booking.com, are short-term stays intended for tourism or recreational purposes.
Common Features of Vacation Rentals:
- Rental period of less than 30 days
- Furnished and includes utilities
- Rented for leisure or vacation
- Includes services like cleaning or Wi-Fi
- Not used as a primary residence
- Typically paid daily or weekly
Example of a Vacation Rental:
A Canadian couple books a fully-furnished condo in Tamarindo for 10 nights via Airbnb. They use it purely for vacation and move out at the end of their stay. This is a vacation rental, and tenancy laws do not apply.
Eviction Process:
Vacation rentals fall outside tenancy laws, so administrative eviction or contract-based remedies apply—typically much faster than court-based processes.
What is a Long-Term Rental in Costa Rica?
A long-term rental is any rental in which the tenant uses the property as a residence or domicile. The intended use and duration are what matters—not whether the lease is written or verbal.
Common Features of Long-Term Rentals:
- Rental period exceeds 30 days
- Tenant uses the property as a home
- Monthly rent payments
- May or may not be furnished
- No services like daily cleaning
- Often arranged via word-of-mouth or private agreement
Example of a Long-Term Rental:
An American retiree verbally agrees to rent a small house in Atenas for 6 months, pays monthly, and uses the property as his residence. Even without a written lease, this is a long-term rental, and the tenancy law applies.
Eviction Process:
Protected tenants can only be evicted through a court process and only for specific reasons (non-payment, property damage, etc.). Even verbal contracts are legally enforceable under Costa Rica’s tenancy law.
Quick Comparison Table
Criteria | Vacation Rental | Long-Term Rental |
Duration | Less than 30 days | More than 30 days |
Use | Tourism | Residence |
Furnished | Yes | Optional |
Contract Type | Commercial | Residential (protected) |
Eviction | Administrative or civil | Judicial process |
Services Included | Yes | Rarely |
Conclusion
If you are a landlord this distinction is very important as the time frame involved to evict a tenant that is in a vacation rental is much shorter than having to sue a tenant in Court for a judicial eviction process.
As a Tenant it is crucial for you to understand the difference between the two.
Grasping these distinctions helps avoid disputes, illegal evictions, or unwanted legal exposure.
