Published on and written by Cyril Jarnias
A country of Andean highlands, Amazon jungle, and colonial cities, Bolivia is becoming a very serious playground for vacation rentals. Between the rise of Airbnb, growing tourism, and a still affordable real estate market, investors and casual hosts alike now have a set of opportunities rarely found together in a single South American country.
Short-term rentals have spread beyond Bolivia’s major cities to reach emerging markets like Rurrenabaque. La Paz, as the administrative capital, concentrates the majority of available data and serves as an essential case study for evaluating the implications of investing in this sector in Bolivia.
A booming tourism market and still affordable real estate
Bolivia has long been a well-kept secret of backpackers. Yet figures show a shift toward managed mass tourism. In 2023, around two million visitors traveled through the country, including over one million foreign tourists. Argentina, Peru, Brazil, the United States, Chile, and Spain are the main countries of origin, but the list of source markets is now global, from France to South Korea, to Mexico or China.
Bolivia’s tourism revenue rose from around $100 million in the early 2000s to more than $580 million a dozen years later.
On the macroeconomic front, the situation is rather favorable for real estate investment. Bolivia has about 12 million inhabitants, 70% urban, a GDP close to $43 billion, moderate inflation around 3%, and a currency, the boliviano, with an almost fixed exchange rate against the dollar for years. Economic growth projections, between 3.5% and just over 4% per year through 2027, reinforce this picture.
The minimum price to acquire a one- or two-bedroom apartment in this region.
This combination of expanding tourism and accessible real estate creates a favorable ground for vacation rentals, especially in major cities and structured tourist destinations.
Where to invest: overview of the best Bolivian markets
A report from AirROI, based on analysis of thousands of Airbnb listings, offers a ranking of the 11 best Bolivian markets for short-term rentals. The approach relies on standard industry indicators: number of properties, average monthly revenue, average daily rate (ADR), occupancy rate, and level of local regulation.
Here is a summary of the main markets:
| Rank | City / Municipality | Number of properties | Avg. monthly revenue (US$) | Avg. ADR (US$) | Occupancy rate (%) | Regulation |
|---|---|---|---|---|---|---|
| 1 | Santa Cruz de la Sierra | 1,804 | 179.18 | 33.89 | 29.52 | Low |
| 2 | La Paz | 1,012 | 232.60 | 31.56 | 34.65 | Low |
| 3 | Cochabamba | 976 | 141.65 | 30.53 | 26.08 | Low |
| 4 | Tarija Municipality | 283 | 150.71 | 36.30 | 23.65 | Low |
| 5 | Sucre Municipality | 270 | 172.90 | 28.47 | 29.74 | Low |
| 6 | Samaipata Municipality | 113 | 458.17 | 105.78 | 19.41 | Low |
| 7 | Copacabana | 66 | 108.23 | 37.34 | 18.67 | Low |
| 8 | Uyuni | 40 | 575.46 | 87.61 | 27.62 | Low |
| 9 | Oruro Municipality | 37 | 170.25 | 49.67 | 20.87 | Low |
| 10 | Potosí | 25 | 199.36 | 28.65 | 31.38 | Low |
| 11 | Porongo Municipality (Ayacucho) | 24 | 330.08 | 110.34 | 21.05 | Low |
Several points stand out from this table. First, La Paz consistently ranks among the most profitable markets, with an average monthly revenue higher than Santa Cruz de la Sierra, even though nightly rates are slightly lower. The driver here is the higher occupancy rate.
Destinations like Uyuni and Samaipata generate very high average revenues but are characterized by strong seasonality and limited supply. Their success relies on specific attractions (Salar de Uyuni, Samaipata fortress, nature tourism) and they are better suited to targeted strategies than to a broad, diversified portfolio.
The conclusion is clear: for an investor looking to start in a deep market with international demand, La Paz, Santa Cruz de la Sierra, and Cochabamba are the three pillars. For a more opportunistic profile seeking high returns on sometimes lower entry tickets, cities like Uyuni, Samaipata, or Copacabana can become growth drivers.
Focus on La Paz: a laboratory for vacation rentals
Even though opportunities exist throughout the country, La Paz concentrates a significant share of research, listings, and available data. The main meta-search engines and platforms give an idea of the scale of the tourist accommodation stock.
Likibu lists about 410 short-term rentals in the city, while Airbnb displays up to 2,750. More focused market analyses speak of 1,021 to 1,061 truly active listings over the last 12 months, which more closely corresponds to properties actually rented regularly.
Overall performance is rather encouraging for a still-emerging market.
| Key indicator (La Paz) | Approximate value |
|---|---|
| Active Airbnb listings | 1,021 – 1,061 |
| Average daily rate (Airbnb) | US$31 |
| Median ADR (AirROI) | US$27 |
| Average annual revenue per listing (Airbnb) | US$2,673 |
| Average occupancy rate | 34.6% |
| High season occupancy rate | ≈ 41% |
| Low season occupancy rate | ≈ 33% |
| Average guest rating | 4.7 / 5 |
| Average capacity per property | 3 people |
| Average size | 55 m² |
The average revenue per listing – about $2,700 per year – may seem modest if considered in absolute value. But it must be seen in light of acquisition costs and the local cost of living. Especially since this figure includes many small studios and poorly optimized properties, far from the best performances.
The most efficient properties, those in the top 10% of the market, achieve ADRs of at least $49 and occupancy rates of 77% or higher. This completely changes the scale of profitability, especially if the purchase price was negotiated at the right level.
Property types and traveler expectations in La Paz
La Paz’s market is very clearly dominated by small urban apartments. Nearly 90% of Airbnb listings are apartments or condos. Over 82% of offered properties are “entire home/apartment” (whole properties), not private rooms.
This is the average number of people per property offered on the market, although the most common capacity is two travelers.
Regarding amenities, the hierarchy is unsurprising: WiFi is ubiquitous (2,580 rentals have it), often associated with a functional kitchen. Travelers also heavily seek air conditioning and access to a pool – even if only about forty properties actually have a pool. About 12% of properties accept pets, which is still an under-exploited segment, whereas globally, pet-friendliness is associated with higher daily revenue.
La Paz also stands out for its highly international clientele: about 77% of Airbnb guests are foreign visitors, mostly English and Spanish speakers. Half belong to the post-2000 generation (Gen Z / Alpha), which influences expectations: strong demand for stable internet connection, dedicated workspaces (already present in nearly 1,440 properties), and photogenic properties suited to social media.
Strategic neighborhoods and examples of high-performing properties
Several neighborhoods stand out for vacation rental investment.
An emblematic example of a property in this sought-after neighborhood is a penthouse with a view of Illimani, equipped with a queen-size bed, high-performance internet, and an optional second bedroom. It is typically rented around $38 per night for the main room, illustrating the offering that attracts tourists and digital nomads.
The city center, around 16 de Julio (“El Prado”) avenue and the Libertador or San Jorge cable cars, also concentrates strong demand. Apartments like “Cosmopolitan 502,” rated 9.6/10, benefit from this centrality, combined with services valued by travelers (24-hour reception, airport transfers, WiFi, elevator).
Zona Sur and San Miguel constitute another interesting hub, rather upscale, with a slightly milder climate and a wealthy local clientele, but also expats and tourists seeking more comfort.
Among the most popular listings downtown, we find modern studios and apartments like “Elegant And Cozy In Downtown La Paz“, rated 9.9/10, offering a fully equipped kitchen, air conditioning, and a very good location, for a rate of about $36 per night.
Beyond these examples, AirROI recommendations for La Paz also include areas like Achumani, Obrajes, Cotahuma, San Pedro, and even El Alto for strategies more focused on volume and a mixed local/tourist clientele.
Seasonality: when and how to optimize your revenue in La Paz
As with any Andean destination, seasonality plays an important role. Data from different platforms do not always converge on the same months, but they paint a consistent picture: a high season around the end of the austral summer and festive events, a low season rather at the end of winter and beginning of spring.
According to available data, the high season periods, where rates and occupancy peak, seem to concentrate in March and November, with July also mentioned for its high rates. Conversely, seasonal troughs, characterized by lower prices, would be typical in August and December. These seasonal fluctuations lead to significant variations in average prices.
| Month / Period | Price trend in La Paz | Comment |
|---|---|---|
| February | Drop of about 8%, ≈ US$28/night | Good window to attract budget-friendly travelers |
| July – August (summer) | ≈ US$237 for a week | Peak tourist demand |
| August | Increase of about 12%, ≈ US$34/night | Andean high season effect |
| October | 42% of properties still available | Interesting month for last-minute bookings |
National analyses (all cities combined) also show a significant price gap between weekdays and weekends. Over a recent period, the average rate for a night between Sunday and Thursday was around $45, compared to $38 for weekend nights. In La Paz, datasets from KAYAK or other sources show a temporary opposite phenomenon, with Saturdays sometimes becoming the most expensive, or even intermediate days (Wednesday or Thursday) seeing increases depending on demand.
Despite these occasional divergences, two recommendations stand out. First, the need to use dynamic pricing tools – or at least manually adjust rates based on local seasons (festivals like Gran Poder, Carnival, regional holidays, etc.). Second, the importance of anticipation: for La Paz, some platforms recommend booking or having bookings made 37 to 74 days in advance to get the best rates, whereas the current average booking window is about 13 days. In other words, there is still a gap between host practices and traveler behavior, which can be exploited by those who structure their calendars better.
Rules of the game: regulation, taxation, and legal framework
The relative novelty of vacation rentals in Bolivia means they still operate in a rather flexible regulatory environment. In the main markets analyzed – La Paz, Santa Cruz de la Sierra, Cochabamba, Sucre, Tarija, Samaipata, Uyuni, Potosí, and even Oruro – the climate is classified as “low regulation”. In La Paz, fewer than 1% of listings would be formally licensed today, although this data should be interpreted with caution.
This flexibility does not mean a legal vacuum. Regarding rentals in general, leases and rental contracts are governed by the Bolivian Civil Code, particularly Articles 685 to 712. In terms of property, the 2009 Constitution and the 1975 Civil Code define rights and restrictions, especially for foreigners.
The main points to remember for an investor or owner considering vacation rentals are as follows.
A foreigner can purchase urban real estate (residential, commercial, industrial) if they have temporary residency and a Bolivian ID card. The purchase must be formalized by a notarized deed (“escritura pública”) registered with the Office of Real Rights. Rural land is excluded, except through a Bolivian company, and certain border areas within a 50 km radius are prohibited for nationals of neighboring countries.
Regarding rentals, no legal minimum duration is imposed for vacation rentals: a property can be rented for just one night. For standard leases, a minimum duration of three months is mentioned, but it does not apply to hotel-type or similar rentals. Contracts are generally drawn up before a notary for long-term rentals.
Owners are subject to three main taxes: a transfer tax upon purchase (~3% of the official price), an annual property tax based on cadastral value, and a specific tax on rental income (~16% of rents, combining VAT ~13% and IT ~3%). This rental tax is declared monthly online to the National Tax Service (SIN) and paid at the bank or electronically.
For a foreign investor, this means obtaining a tax identification number (NIT) and, most often, hiring a local accountant or lawyer to handle declarations. Tax legislation applies the same way to Bolivians and foreigners: no specific exemptions are reserved for non-residents, but the system is based on territoriality of taxation, which simplifies the situation compared to some countries.
Returns and scenarios: what can an investor expect?
To evaluate the profitability of a vacation rental in Bolivia, several levels of analysis must be combined: gross rental yield, property appreciation, and holding costs.
Nationally, estimates of gross yield on residential properties range between 4% and 8% per year, depending on the city, neighborhood, and property type. Properties with tourist appeal – villas, apartments in high-demand areas, properties near Lake Titicaca or the Salar – can theoretically achieve yields of 8% to 12% in a full year, if occupancy and pricing are well managed.
The maximum projected annual appreciation rate for real estate in Bolivia’s tourist destinations, such as Lake Titicaca.
Detailed scenarios put forward by some studies give an order of magnitude:
| Typical scenario | Estimated total return over 5 years |
|---|---|
| High-end apartment in Santa Cruz (premium zone) | 65 – 70% |
| Apartment in Zona Sur, La Paz | 60 – 65% |
| Colonial building in Sucre (boutique hotel) | 50 – 70% |
| Residential house in Cochabamba | 55 – 60% |
| Tourist property on Lake Titicaca | 85 – 95% |
These figures aggregate capital appreciation and rental income. They are based on prudent assumptions of economic growth, relative political stability, and continued tourism development.
Acquisition costs for a property in Portugal can reach up to 9% of the purchase price.
In this context, an apartment around $150,000 in La Paz, rented on a mixed monthly and seasonal basis, can generate several hundred dollars of net income per month after expenses, according to a cash flow example that shows a monthly net income around $375 before tax, and just over $320 after tax.
Platforms and practices: how properties are rented in Bolivia
The platform landscape reflects the market’s evolution. Airbnb dominates the vacation rental scene very heavily, with nearly 5,000 hosts listed nationwide. Listings are concentrated in the three major cities – La Paz, Santa Cruz de la Sierra, and Cochabamba – but are gaining ground in secondary tourist destinations.
Platforms like Booking.com, Vrbo, KAYAK, and Likibu aggregate part of the accommodation supply and provide data on prices and availability. Specialized tools like HiChee allow comparing rates across several platforms (Airbnb, Booking, Vrbo), helping travelers optimize their budget and hosts monitor their market competitiveness.
In parallel, for long-term stays or traditional rentals, international agencies like ReMax and Century 21, along with local real estate portals (Ultracasas, InfoCasas, etc.), play a central role. Rentals for three to six months or year-round, often unfurnished, can be 20% to 40% cheaper than an equivalent stay via Airbnb, but cater to a completely different clientele.
This is the average cost in dollars for a week of vacation rental in Bolivia, illustrating the country’s affordability for travelers.
La Paz, for example, offers an average rate around $30 per night, $213 for a typical week in a one-bedroom apartment of 55 m², while some high-end apartments go up to $80 or more per night.
Beyond La Paz: other promising hubs
While La Paz draws the attention of analyses, other Bolivian markets present promising profiles for vacation rentals.
Santa Cruz de la Sierra, the country’s largest city and economic engine, combines strong population growth, many construction projects (residential, mixed-use, hotel), and growing demand for furnished properties suitable for business and leisure clientele. Neighborhoods like Equipetrol have specialized in design studios with pool, coworking, and gym, targeting digital nomads and discerning travelers.
Cochabamba, nicknamed the city of “eternal spring,” offers a varied real estate market with apartments and houses in neighborhoods like El Prado or Cala Cala. Purchase prices are generally lower than in La Paz or Santa Cruz. Rental yield can be attractive, thanks to a mixed clientele of students, families, and tourists seeking a quieter stay.
Sucre, a UNESCO World Heritage colonial city, is emerging as a prime market for small aparthotel structures or charming guesthouses. AirROI data shows a market composed of nearly 70% entire properties, dominated by apartments and houses, with an 84% international and very young clientele, mostly French and English speaking. The best hosts, managing two to eight properties, can generate several tens of thousands of dollars in annual revenue.
Tarija, the wine capital of southern Bolivia, has a rental stock of about 160 properties for tourist stays.
Uyuni, gateway to the salt flats, finally shows impressive figures given the size of its market: about forty properties, but an average monthly revenue of around $575 and an ADR close to $88. The niche potential is real, provided seasonality and logistical issues related to the extreme climate are well managed.
Risks, limitations, and differentiation opportunities
Like any emerging market, vacation rentals in Bolivia are not without risks. The political and regulatory dimension remains a point of vigilance, even if current data qualify most markets as “low regulation.” Developments in Latin America, where several countries are tightening rules around Airbnb, show that future tightening is possible.
The main concrete risks are legal insecurity regarding property titles, the proliferation of scams, and administrative complexity. It is unanimously recommended to work with an experienced local lawyer, obtain an “Informe Rápido” to verify the property and its owner, and avoid informal transactions or unregistered private contracts.
On the economic front, the main limitation lies in the absolute level of rents, which remains modest by international standards. The leverage effect is therefore less spectacular than in some global metropolises, but price stability and low property taxation partially offset this point.
To meet the demand of Generation Z and remote work stays, vacation rentals need to be rethought. Beyond basic accommodation, travelers now seek reliable WiFi, a comfortable workspace, and amenities like a gym or coworking space access. They also prioritize authentic experiences: proximity to local markets, decor inspired by local cultures (such as Andean cultures), and integrated activities like guided tours, cooking workshops, or local music discoveries.
Differentiation opportunities are numerous. Offering properties truly suited to remote work, with ergonomic desks and high-speed internet, can attract mid-term clientele. Developing offers focused on local gastronomy (salteña tastings, quinoa-based cuisine discovery, Titicaca trout) allows standing out from standardized accommodations. Betting on eco-tourism – lodges in the Amazon, cabins near national parks, low-impact accommodations – aligns with a global trend where over 40% of travelers say they value the sustainability of their stays.
A window of opportunity still open
The current snapshot of the Bolivian vacation rental market shows a sector in growth, but far from saturated. AirDNA figures indicate an annual increase in listings of only about 3%, revenue up 4%, ADR up 3%, and occupancy rate improving by 6%. In other words, supply is increasing, but demand is following without causing overcapacity for now.
In La Paz, an average occupancy rate of about 35% indicates significant room for improvement, especially for high-performing professional properties that can reach the top 10% of the market. Meanwhile, in cities like Sucre, Samaipata, or Uyuni, the meeting of still-limited real estate supply with highly targeted tourist demand creates promising opportunities for well-designed and strategically positioned projects.
Bolivia’s main strength in this context likely lies in its hybrid positioning: a country still perceived as “alternative,” offering strong cultural immersion and spectacular landscapes, but with a base of infrastructure and data solid enough to allow a rational approach to rental investment.
For investors ready to accept a more complex administrative environment than in Europe or North America, to work closely with local lawyers and managers, and to develop products designed for today’s travelers rather than yesterday’s, vacation rentals in Bolivia – and particularly in La Paz – appear as an opportunity that is both accessible and promising for medium-term growth.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
