Is Airbnb legal in Tulum?

Airbnb Regulations in Tulum, Mexico

Tulum has emerged as a popular destination for short-term rental properties, regulated by a framework established by local authorities to ensure safety, compliance, and tax responsibility for hosts. Below is a summary of the key regulations that govern Airbnb rentals in Tulum:

1. State Operating License: All Airbnb hosts in Tulum must obtain a state operating license from the Tax Administration Service (SAT) in Quintana Roo. This license is essential for legal operation and must be renewed annually.

2. Lodging Tax (ISH): Hosts are required to charge a Lodging Tax of 6% on rental income. This tax must be collected from guests and remitted to the local tax authority as part of the operational compliance.

3. Tax Registration: Hosts must register for an RFC (Federal Taxpayers Registry) and provide this information to Airbnb to benefit from the lowest applicable tax rates. Failure to do so can result in higher withholding taxes.

4. Compliance with Local Laws: It is crucial for hosts to stay informed about the most current regulations, as local authorities can perform checks to ensure compliance. Properties without the proper licenses may face fines and possible shutdowns.

5. Airbnb's Support: Airbnb provides a Mexico Tax Hub to assist hosts in understanding their tax obligations, which includes information on income tax, value-added tax (VAT), and lodging taxes.

6. Insurance Requirements: While Airbnb offers host damage protection through AirCover, hosts are encouraged to have additional liability and homeowner’s insurance to cover any damages incurred during guest stays.

7. Community Engagement: Hosts are encouraged to join local Airbnb clubs or communities to share experiences, obtain tips, and network with other hosts in the Tulum area.

Hosts seeking to navigate these regulations smoothly may benefit from enlisting property management services that specialize in local compliance and operational management, allowing them to focus on enhancing guest experiences while meeting legal obligations.