14. Airbnb in Mexico: What You Need to Know About Short-Term Rental Laws Before Inves

[Ciro Antonio Martínez Morales]

You found the perfect condo. You’re ready to list it on Airbnb.
But hold up — are short-term rentals even legal in your area?

The truth is: regulations around vacation rentals in Mexico are changing fast. And as the market grows, more municipalities are starting to enforce stricter rules.

Here’s what you need to know to stay compliant, legal, and profitable:

🏛️ 1. Local Permits & Zoning

• Many cities now require a municipal lodging license (licencia de hospedaje)

• Not all residential zones allow short-term rentals

• Some developments (even in tourist areas) have HOA or condo rules that explicitly prohibit Airbnb

💡 Pro tip: Before you buy, ask for a copy of the building’s condominium regime and zoning certificate.

🧾 2. Lodging Tax Obligations (Impuesto Sobre Hospedaje)

• Airbnb and VRBO automatically collect lodging tax in many states — but not all

• This tax ranges from 3% to 5%, depending on the state

• In some areas, you must register as a lodging provider and declare income monthly with SAT

📜 3. Business Registration & RFC

• To rent legally, you need an RFC (Mexican tax ID) and tax regime registration

• Most investors opt for the Régimen de Actividad Empresarial (Business Activity Regime)

• This allows for deductions, including property maintenance, utilities, and management fees

✅ What You Can Do:

• Before buying, ask your agent or attorney for:

  • The zoning classification of the property

  • Current municipal rules on vacation rentals

  • HOA bylaws and restrictions

• Register your property with SAT and work with a bilingual accountant

• Use Airbnb’s tools to collect taxes automatically (if supported in your state)

• Stay informed — these laws change often, and what’s allowed today may be restricted tomorrow

💬 Final Thought:
Owning an Airbnb in Mexico can be highly profitable — but only if you play by the rules.
Regulatory compliance = long-term cash flow.
Don’t cut corners. Educated investors build sustainable income.

Next post: We’ll close the series with a look at recent legal trends and reforms in Mexican real estate law, and what’s coming in 2025.