04 / 19 / 24
Modifications to the regulation for the Temporary Tourist Stay in Mexico City
MEXICO CITY, MEXICO, April 19th, 2024 – On April 4, 2024, a Decree was published in the Official Gazette of Mexico City to amend the name of the law, as well as to amend and supplement various provisions of the Tourism Law of the Federal District (now Mexico City), which became effective as of the day following its publication.
The reform regulates the digital platforms that offer lodging services, such as Airbnb, Booking, among others (the “Platforms“), as well as the legal owners (the “Hosts“) of the properties for residential use in Mexico City (the “Properties“) that are offered to third parties, as well as the activities and procedures of the Platforms and/or Hosts derived from the provision temporary lodging services in the Properties in exchange for a price (the “Temporary Tourist Lodging”). The Ministry of Tourism of Mexico City is the authority responsible for the oversight of the new system to regulate Temporary Tourist Lodging, through the management and control of a host registry (the “Host Registry“) and a technological platform registry (the “Platform Registry“). The objectives of these registries are:
A.- Identify the Hosts and Platforms that offer, provide or contract with third parties the Temporary Tourist Lodging in Mexico City,
B.- Identify the Properties where Temporary Tourist Lodging is provided, and
C.- Oversee the correct operation of the Temporary Tourist Lodging, as well as the payment of the corresponding taxes.
In tax and insurance matters, two important requirements that the Hosts must comply are: (a) delivery of a tax status certificates corresponding to the Hosts and the entity that operates the Platforms, a compliance certificate of tax obligations, and non-debt certificates of local taxes and contributions (property tax and water); and (b) contracting a civil liability insurance to cover against all risks inherent to the use of any Property, for which the Hosts must provide the corresponding policy, as well as a letter under oath that the Property complies with security and integral risk management and civil protection measures.
It is worth mentioning that within the reform, there are two requirements that are of utmost importance and that derived from the current demand by the government in areas such as tax matters and security become even more relevant. These are, on the one hand, the delivery by the Hosts and the Platforms, their updated tax status certificates and with the certification of compliance with tax obligations, as well as the certificates of non-debt of payment of local taxes and contributions such as property tax and water; and on the other hand, the requirement to contract a civil liability insurance that covers against risks inherent to the use of any Property, in which the Hosts must provide the cover of the corresponding policy, as well as a letter under oath that the Property complies with the security and integral risk management and civil protection measures.
Accordance to the reform, Mexican or foreign individuals or legal entities that operate, intermediate and/or manage a Platform and any intermediary, acting as manager or administrator, shall be considered jointly and severally liable with the Hosts to pay the lodging tax and any penalties derived from such tax, related to the Eventual Tourist Lodging that the Hosts have provided through any Platform. Therefore, once registered, either in the Registry of Hosts or in the Registry of Platforms, it is essential that individuals or legal entities that offer a Property for Eventual Tourist Lodging through a Platform review in detail their obligations and the legal and tax requirements requested as a result of this new reform to the Tourism Law.
The SMPS Legal team remains at your disposal for any questions regarding this notice, as well as any possible strategy that your company may wish to develop or consult.