Responsible hosting in Mexico
The Airbnb community is incredibly diverse and includes millions of inhabitants from all corners of the globe who are committed to building a world where people of any background can feel welcome no matter how far they are from home. This commitment is supported by two fundamental principles that apply to hosts and guests who use the Airbnb platform: inclusion and respect.
On this page, you'll find important information to keep in mind and share with your guests, as well as guides prepared by expert tax advisors regarding tax payments, as well as safety, prevention, and disaster management best practices.
This information will help you:
- Have tools that help your guests make the most of their stay and the information they need to enjoy a safe stay; and
- Have a general overview of the different laws and regulations that may apply to your particular situation, as well as become familiar with your duties as a host.
We also recommend that hosts do some extra research, as this page may not contain all the available information and cannot be considered tax or legal advice. This page is more of a starting point with regards to taxes. Each person's tax situation is considered when receiving tax advice, so they will need to review the information provided for your specific situation that has not changed recently. We recommend that you get your particular case assessed by a tax advisor and/or accountant.
Table of contents
Taxes on your income earned through Airbnb
Tax obligations vary based on each person's situation. So, we recommend that you research your obligations or consult an accountant or tax professional to find out more specific information.
Your earnings obtained through Airbnb are subject to the payment of taxes such as Income Tax, Value Added Tax and Lodging Tax. This implies that you must pay taxes on a monthly basis, file an annual tax return and comply with the tax obligations set out in tax laws, such as issuing invoices for your income and keeping accounting records.
Airbnb has created the Mexico Tax Hub, which includes informative articles that could help you understand your tax obligations more clearly, including:
- How to obtain or update the RFC
- How to keep accounting records
- How to issue invoices
- Tax withholdings made by Airbnb
- Methods for paying taxes
- Management of the lodging tax
- Price management of listed properties
- Considerations when managing other people's property
- Filing of the annual tax returns of individuals
- Filing of the annual tax returns of legal entities
If you are a company or legal entity, please refer to this section of the Mexico Tax Hub, where you can find informative articles tailored for companies.
Please note that this information is not legal or tax advice, it is simply a starting point to gather more information.
To ensure that your specific situation complies with tax regulations, we recommend having your case assessed by a tax advisor and/or accountant.
General information on tax payments and the new “Tax Regime for Digital Platforms"
As soon as you include your accommodation in Airbnb as a host and complete reservations, you are responsible for paying your taxes, whether you are an individual or a company. The Value Added Tax (VAT) is reported on a monthly basis and the Income Tax (ISR) is declared both monthly and annually. In these tax returns you must inform about the income you earned for accommodation, experiences or adventures that you operate through this platform. The annual income tax returns for companies are filed no later than March of the following year, and for individuals, no later than April.
Airbnb provides you with additional orderly and structured information that serves as guidance on your tax obligations in the Mexico Tax Hub, where you can learn about:
- How much tax Airbnb will withhold from you
- When should you file your taxes
- What taxes you have to pay and how much
- What expenses you can deduct from your taxes
- The tax documentation you need to obtain from Airbnb
- The tax information that you must provide to Airbnb
Due to the new tax regime, digital platforms must: (i) collect information from you as indicated by the tax regime and verify that your RFC is valid; (ii) include 16% of VAT (Value Added Tax) in what we charge you for using the platform and issue a corresponding invoice; (iii) make applicable withholdings on Income Tax (ISR) and VAT, and issue a monthly withholding certificates; and (iv) transmit, on a monthly basis, tax and banking details, CURP, and information about transactions made on the platform as required by the tax regime. With your consent, we will process your information as delineated in the new tax regime. Please note that Airbnb will not yet share information and/or withhold any taxes. Airbnb started sharing your information and withhold taxes from October 1st 2020. We will notify you in advance before these activities start.
You can withdraw your consent at any time by deleting your Mexican taxpayer information from your Airbnb Account. To do so:
- Go to your Account
- Select Payments & Payouts
- Scroll to your Taxpayer information section
- Click on the three dots icon next to your Mexico Tax ID and select Delete.
Lodging Tax through Airbnb
In addition to ISR and VAT, you must declare the Lodging Tax (ISH) for the income generated through Airbnb.
Since ISH is a state tax, each state determines the tax rate. The ISH is charged to your guest. He or she will pay it to you, and you will pay it to your state tax authority. If your listed property is located in Mexico City, Quintana Roo, State of Mexico, Baja California, Baja California Norte, Yucatán, Oaxaca and Sinaloa, Airbnb already adds the tax to your price and transfers it to the guest, then you do not need to include any tax on the price you upload to Airbnb.
Learn more about the lodging tax in our Mexico Tax Hub, specifically in these sections:
How to register your RFC on Airbnb
It is important that you obtain your RFC from the Tax Administration Service (SAT) and register it in Airbnb in order to: be eligible to receive the lowest applicable tax withholding rate, obtain your certificate, obtain a tax deductible invoice for the charge for the use of the platform, and also so that the information shared with the SAT is accurate.
In the Mexico Tax Hub you can learn about the following processes in detail:
- Obtain or update your RFC before the SAT
- Secure your registration in the Digital Platforms Regime
- Register your RFC on Airbnb
- Identify the tax regime that applies to you
Keep in mind that you must enter and validate your RFC before the booking. Once you enter your RFC and it is validated, you will not have to enter it again and it will be used in all tax documentation that Airbnb will issue to you. It should be noted that Airbnb cannot modify previously issued tax documents.
Remember that if you do not provide your RFC to Airbnb, the withholdings will be made up to 20% of ISR.