What will this Costa Rica property actually return?

There is no single answer, it depends heavily on the area, the property and whether it's a long-term or short-term rental. Rather than chase a number, compare properties on a like-for-like basis with the same cost and occupancy assumptions. We're happy to pressure-test your figures for a specific listing.

Gross yield is annual rent divided by price, before any costs. Net yield, or cap rate, subtracts operating costs first, management, maintenance, HOA, property tax, insurance, vacancy. Cap rate is the number that actually reflects what you keep.

Common line items are property management, maintenance and repairs, HOA or condo fees, property tax, insurance, and a vacancy allowance. Short-term rentals also carry cleaning, utilities, platform fees and furnishing. A 25% to 40% cost load is a reasonable starting point to refine per property.

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, so plan for both. Talk to Folio for a realistic read on a property.