What is the difference between gross yield and net yield (cap rate)?

Gross yield is annual rent divided by price before costs. Net yield, or cap rate, subtracts operating costs first — management, maintenance, HOA, property tax, insurance and vacancy.

What operating costs should I budget for a Costa Rica rental?

Property management, maintenance, HOA or condo fees, property tax, insurance and a vacancy allowance. Short-term rentals also carry cleaning, utilities and platform fees. A 25%–40% cost load is a reasonable starting point.

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What will this Costa Rica property actually return?

Q: What is a good cap rate in Costa Rica?

There is no single answer — it depends on the area, the property and whether it's a long-term or short-term rental. Compare properties on a like-for-like basis with the same cost and occupancy assumptions.

Q: Can foreigners earn rental income in Costa Rica?

Yes. Foreigners can own and rent property with the same rights as citizens. Rental income is taxable in Costa Rica and may be reportable at home.

Run the numbers before you buy. Enter the price and the rent — long-term or Airbnb — to see gross yield, cap rate, net income and a five-year projection. In seconds.

Cap rate & net yield Long-term or Airbnb 5-year projection

Purchase price (USD)

$50K$3M

Monthly rent (USD)

Operating costs 30%

10%60%

Appreciation 4%/yr

0%12%

All inputs are yours to set — there is no "typical" Costa Rica return; it depends on the area, the property and how it's run. We'll help you sanity-check real numbers for a specific listing.

Your estimate

Cap rate (net yield)

5.0%

on a $450,000 purchase

Illustrative projection from the inputs you set. Actual returns depend on the area, management, seasonality and costs. Not investment advice.

Investor basics

Reading a Costa Rica rental return

Cap rate is your net annual income divided by the purchase price — a quick way to compare properties. Gross yield ignores costs; net yield (cap rate) is the honest number. Here's what investors ask us most.

What is a good cap rate in Costa Rica?

Gross yield vs. net yield (cap rate) — what's the difference?

What operating costs should I budget?

Can foreigners earn rental income in Costa Rica?

Next step

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Add the closing costs

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