Is Airbnb legal in Playa del Carmen?

Airbnb Regulations in Playa del Carmen

Playa del Carmen, located in the state of Quintana Roo, has established specific regulations governing the operation of short-term rental properties like those listed on Airbnb. As of 2023, these regulations are crucial for ensuring hosts comply with local laws and contribute to the local economy responsibly.

Key Requirements for Hosts:

1. State Operating License: All hosts must obtain a state operating license from the Tax Administration Service (SAT) to legally operate vacation rentals. This license is a fundamental requirement aimed at ensuring compliance with local tax obligations.

2. Lodging Tax: Hosts are required to collect a Lodging Tax (known as the ISH) from guests, set at 6% in Quintana Roo. This tax must be remitted to the state tax authorities.

3. Registration and Documentation: To obtain the operating license, hosts must present various documents including:

   • Proof of property ownership.
   • Current Tax Status Certificate.
   • A cadastral code.
   • The property title deed.
   • Any articles of incorporation if applicable. Additionally, hosts should ensure compliance with local zoning laws, as some neighborhoods or homeowners' associations may restrict short-term rentals.

4. Tax Obligations: Apart from the Lodging Tax, hosts must adhere to other tax obligations such as Income Tax (ISR) and Value Added Tax (VAT). Income generated through rentals is subject to these taxes, and appropriate records must be maintained for tax reporting.

5. Insurance: Hosts should also evaluate their insurance coverage to ensure it meets the operational risks associated with short-term rentals. Although Airbnb provides some level of liability coverage through its AirCover program, it does not replace comprehensive property or liability insurance.

6. Regular Audits and Compliance Checks: The local authorities maintain the right to audit rental properties to ensure compliance with all operational regulations. Non-compliance can result in penalties, including fines or the cessation of rental activities.

Conclusion

Hosts in Playa del Carmen must prioritize obtaining the necessary licenses and maintaining compliance with tax and insurance regulations to ensure their short-term rental operations are legal and sustainable. By doing so, they contribute to the local economy while providing visitors with quality accommodations in this popular tourist destination. For those considering entering the short-term rental market, seeking advice from local legal or tax professionals is strongly advised to navigate the regulatory landscape effectively.