NEW MANDATORY REGULATION FOR SHORT TERM RENTALS

With the entry into force of the Law for the Regularization of Non-Traditional Lodging and its Intermediation through Digital Platforms and its Regulations, there are new rights and obligations for property owners, service providers, users and marketing or intermediary companies.

All those who offer Non-Traditional Lodging – or Short-Term Rentals – such as renting house apartments, villas, chalets, bungalows, rooms, or any other similar construction for periods of no more than one year and no less than twenty-four hours are subject to new responsibilities.

Individuals or companies commercializing or intermediating short-term rentals must register before the Registry of Providers and Non-Traditional Lodging Service Commercialization or Intermediary Companies, created by the Costa Rican Institute of Tourism (ICT), which is the government agency responsible for promoting sustainable tourism.

Are there benefits to complete with this new registration? Yes, there are several benefits granted by ICT for those who complete the registry, such as: a) Authorization to freely exercise the short-term rental activity; b) Obtaining a Certificate for Sustainable Tourism (CST); and c) Gain access to the promotion activities organized by ICT.

What are the legal requirements to complete this new registration? Applicants must fill out an electronic form (in Spanish only) available at www.ict.go.cr and include the following information: a) Name of the person or legal entity; b) Identity card number or corporate identification number; c) Name and identity card number of the corporation’s legal representative; d) Legal domicile of the service provider; e) Province, canton and district where the property is located; f) Exact address of the property; g) Number of rooms; h) the Maximum number of guests; i) Electronic means to receive notifications; j) Web page and k) Phone number.

The information must be filled out accurately and correctly, for the process to be approved promptly as it will be subject to revision. Prior to the completion of the form, user registration is required. Keep in mind this is a legal administrative process subject to formal approval; hence, appeal recourses may need to be filed. Don’t let just anyone process it for you.

What are the minimum conditions short term rental services must comply with? To operate the following conditions must be met: a) Periodic cleaning of the facility; b) Provide sanitary services for personal hygiene, including at least a bathroom and toilet; c) Maintenance of the facilities; d) Minimum sanitary and hygienic conditions and e) Provide the necessary containers for the separation and management of solid waste

Are there any tax obligations derived from the enactment of this new regulation? It is necessary and mandatory to register as a tax contributor with the Tax Ministry, issue electronic invoices, and retain monthly accounting services for payment of taxes and filing tax returns.

Are there any zoning restrictions to operate short-term rentals? Non-traditional lodgings and short-term rentals will be able to operate in residential zones, eliminating the commercial license requirement.

Are there any legal repercussions for non-compliance with this newly created regulation? Pursuing this business activity without being duly registered before the Registry of Borrowers and Non-Traditional Lodging Service Commercialization or Intermediary Companies, is illegal. The Tax Ministry, Municipalities, and Health Ministry will intervene and sanctions will be imposed for non-compliance.

At Quatro Legal, we’re glad to assist you with the registry process and provide you the legal advice you need. For more information reach out to Gonzalo Rojas at grb@quatro.legal or Ileana Fernandez at ifm@quatro.legal .

For more useful information visit us at THE QUATRO LEGAL GUIDE at quatro.legal

Thinking of moving to Costa Rica with your pets?

By Carlos Escobar

Without a doubt, traveling or moving abroad, although it can be a beautiful and great adventure, always brings stress. In my case, I was born in El Salvador and when I left my country more than five years ago, leaving my pets behind was my great nightmare. This situation is shared by a large number of foreigners who must give them away or leave them under the trust of a friend or relative. However, this does not have to be the case, since Costa Rica allows the entry of pets from abroad, if the requirements needed by law are met.

First of all, we must understand that the importation of pets is a process that involves the regulations of two countries: the exporting country (where your pet comes from) and the importing country (the country where your pet arrives). That means that the owner has to obtain all the needed documentation from the exporting country to comply with the requirements requested in the importing country, since, otherwise, your pet will not be able to leave the country or, worse, enter the new destination.

In Costa Rica, you need the International Health Certificate (IHC). This certificate is an internationally recognized document, for which the accredited veterinarians or the competent health authority of the exporting country indicate that they have checked your pet for any diseases and is up-to-date with its vaccinations. The credentials required of the issuing veterinarian depend on the species of animal being exported. This certificate must meet certain requirements so that the Costa Rican authorities can accept it, therefore, much attention must be paid to how the authorities of the exporting country issue said certificate, to ensure that it is admitted in Costa Rica.

In general, IHC’s have to meet the following requirements:

  1. Be translated into Spanish.
  2. State that the pets were examined two weeks prior to the date of travel.
  3. State that they are in good health.
  4. State that they are not carriers of any disease or parasite that may cause harm in the place of destination.
  5. State that that they have the corresponding vaccines (this varies depending on the type of pet).

It is also important to add that due to the Wild Animals Conservation Law in Costa Rica, animals considered wild under our legislation cannot enter the country as pets. Other requirements are applicable in this case.

Following the due requirements and formalities, the IHC will allow you to enter the country with your pets and share with them the wonderful adventure that is traveling to Costa Rica.

At Quatro Legal we understand that pets are also members of the family, therefore, we advise for the importing process of your pets to our beautiful country.

Got questions? We have answers. Feel free to contact Gonzalo Rojas, partner of Quatro Legal, at grb@quatro.legal or call +5064350-0501.