Maximizing Real Estate Yields in Costa Rica: Airbnb vs. Long-Term Rentals in 2026

The Growing Appeal of Costa Rica for Real Estate Investment

As the world continues to embrace remote work and tourism, Costa Rica is becoming an increasingly popular destination for real estate investors. In 2026, this Central American gem offers promising opportunities for both seasoned property owners and first-time investors. The rise of platforms like Airbnb has created a wave of interest, with many looking to maximize returns through short-term rentals. However, long-term rental income still remains an attractive option for those seeking stability.

Imagine you’re a first-time investor, standing at the crossroads of decision-making. Do you opt for Airbnb yields that promise higher returns but with more active involvement, or do you stick with the steady, predictable income of long-term rentals? Or perhaps you’re a seasoned property owner evaluating the evolving landscape in Costa Rica, wondering how to balance both types of income streams. The choices are abundant—let’s explore them in detail.

Contextualizing the Costa Rican Real Estate Market in 2026

Costa Rica's real estate market in 2026 is experiencing a surge in demand, driven by key trends that are reshaping how investors approach property ownership. The country’s popularity as a vacation destination continues to soar, with regions like San José, Tamarindo, and Manuel Antonio becoming prime hotspots for vacation homes. Additionally, the rise of remote work has made Costa Rica an appealing location for expats, further fueling the demand for short-term and long-term rental properties.

Economically, Costa Rica's growth is supported by a steady increase in tourism, favorable property tax laws, and ongoing infrastructure development. However, there are also important regulations to keep in mind. For example, changes in zoning laws and tourism taxes may impact short-term rental yields. It's crucial to stay informed about these factors when considering an investment in the country.

Airbnb Yields in Costa Rica

Investing in properties for short-term rentals via Airbnb has its advantages, especially in tourist-centric areas. Locations like Tamarindo, a popular beach town, or Manuel Antonio, known for its national parks, have become hotbeds for Airbnb investments. Property owners in these areas have the potential to earn significant returns, often at much higher rates than long-term rentals.

The flexibility offered by Airbnb is a key factor. Investors can market their properties to international tourists, making it easier to adjust prices based on demand. In 2026, the average Airbnb yield in Costa Rica can range from 7% to 12% annually, depending on the property type and location. Beachfront villas or luxury apartments in bustling cities tend to perform the best, attracting tourists throughout the year.

For example, in San José, city apartments near business hubs and transportation hubs show promising yields, while beachfront properties in popular tourist destinations like Playa Jaco or Santa Teresa continue to yield impressive returns. The key is understanding your property's target audience and strategically marketing it to the right visitors.

Long-Term Rental Yields in Costa Rica

On the other side of the spectrum, long-term rentals offer investors stability and predictability. Long-term leases, typically lasting 12 months or more, allow property owners to receive consistent income with fewer turnover-related issues. Investors with long-term rental properties often face less day-to-day management, which can be appealing for those seeking a more hands-off approach.

In Costa Rica, long-term rental yields are also strong, particularly in areas with growing expat communities or business hubs. For example, areas such as Escazú and Santa Ana in the Greater San José area offer long-term rental yields of 5-7%, with tenants often staying for several years. Expats and remote workers seeking a more permanent home make up a large portion of long-term rental demand, adding to the market’s stability.

The benefit of long-term rentals is also less exposure to fluctuations in tourism, making this strategy ideal for investors who prefer consistency and low maintenance. Long-term tenants are typically responsible for most maintenance, leaving landlords with fewer headaches.

Comparing Airbnb vs. Long-Term Rentals in 2026

Here’s a side-by-side comparison of Airbnb vs. long-term rental yields in Costa Rica in 2026:

Income Potential:

Airbnb tends to offer higher returns, especially in high-demand tourist areas, with investors seeing returns as high as 12%. Long-term rentals typically offer a steadier, lower return, with yields ranging from 5-7%. However, long-term rentals offer consistent income without the fluctuations tied to tourism seasons.

Maintenance & Management:

Airbnb properties generally require more hands-on management. From guest communication and check-ins to cleaning and maintenance, owners are heavily involved. Long-term rentals, in contrast, require less day-to-day involvement, as tenants typically handle their own maintenance.

Risk:

Airbnb rentals are more susceptible to market fluctuations, such as changes in tourism trends or regulation shifts. For example, stricter zoning or tax laws could impact profitability. Long-term rentals are less volatile, but they do come with the risk of tenant turnover and rent non-payment.

Legal & Regulatory Landscape:

Costa Rica has introduced new regulations to curb the growth of short-term rentals, including specific licensing and tax requirements. Investors must ensure their properties comply with local laws. Long-term rentals are generally less affected by these regulations, though they still require proper leasing agreements and tenant management.

Practical Tips for Investors

If you're considering investing in Costa Rican real estate, here are some tips to guide your decision:

• Which Areas to Choose:
  For Airbnb: Focus on popular tourist destinations like Tamarindo, Manuel Antonio, and Jaco.
  For Long-Term Rentals: Look into expat-friendly areas like Escazú, Santa Ana, or regions near business districts in San José.
  
• Calculating Potential Returns:
  Use online property calculators and consult local experts to estimate potential yields for both Airbnb and long-term rentals. Factor in local taxes, management fees, and maintenance costs.
  
• Mitigating Risks:
  Diversify your portfolio by investing in a mix of Airbnb and long-term rental properties to balance risk. Also, consider working with local property management firms to ease the workload.
  
• Switching Strategies:
  Some investors begin with Airbnb to maximize returns and later transition to long-term rentals for stability. Others may opt for a hybrid strategy, managing both types of properties.
  
  

Conclusion: The Right Investment Strategy for You

There’s no one-size-fits-all approach to investing in Costa Rican real estate. The right choice depends on your personal goals—whether you're looking for quick returns from Airbnb or steady, long-term income from traditional rentals. Each strategy offers unique benefits and challenges, so it’s important to assess your preferences carefully.

If you're unsure, consider consulting with local experts or real estate agents who can help you navigate Costa Rica's dynamic market. Your investment success lies in choosing the right property, understanding local regulations, and aligning your strategy with your long-term objectives.

Have you invested in real estate in Costa Rica, or are you considering it? Share your experiences or ask for advice on properties that offer the best yields. If you need more personalized guidance, feel free to schedule a free consultation with a local real estate expert today!