Is Airbnb legal in Mexico City?

Mexico City has implemented a series of regulations for short-term rentals like those listed on Airbnb and VRBO, primarily to address issues such as gentrification and housing cost increases. To operate a vacation rental legally in Mexico City, hosts must register with the city's new Host Registry, which needs renewal every two years. Each property must be registered separately, receiving a unique registration number for listing purposes. There are limits on the number of properties a host can register, and additional requirements apply from the fourth property, including obtaining a merchant establishment key.

Hosts must comply with safety standards, report occupancy data, and pay local lodging taxes. Licensing is mandatory, integrated into the host registration system, and is necessary to maintain operational legality. If these requirements are not fulfilled, hosts may face penalties, including fines.

Tax obligations for short-term rentals include a Lodging Services Tax of 3% to 5% and compliance with federal taxes like VAT and Income Tax. Some platforms, like Airbnb, may help streamline tax compliance by collecting certain taxes on behalf of hosts.

The national Federal Tourism Law and Consumer Protection Law also apply, requiring hosts to register with the National Tourism Registry and adhere to consumer protection standards. Although enforcement can be inconsistent, risks of non-compliance include penalties and possible removal of listings.

Mexico City's regulations aim to create a sustainable balance between promoting tourism and mitigating negative community impacts. Hosts are encouraged to stay informed and compliant, seeking local professional guidance when necessary, to successfully navigate the evolving short-term rental landscape.