Vacation rentals: Airbnb and seasonal renting

Seasonal renting is one of the great attractions of investing in Vallarta: tourist demand is strong almost all year and a well-located property can generate good income. But it is an activity with its own rules, and it is worth knowing them before buying with nightly rentals in mind.

The first thing to check, and before buying, is the bylaws of the condominium or the development. Many condominiums allow vacation rentals, but others limit or prohibit them, or set a minimum stay. If your plan is to rent by season, ask for and read the bylaws before signing: it is the difference between a business and a property you cannot rent the way you wanted. We review it with you.

On the permits and taxes side, seasonal renting is treated as a lodging service, so there are usually more obligations than with long-term renting. Depending on the municipality, a registration or license may be required; in Jalisco and Nayarit there is also a state lodging tax that is passed on to the guest. And on the income you pay income tax (ISR), plus VAT when lodging services are offered. If you rent through a platform such as Airbnb, the platform usually withholds taxes for you, and having an RFC (Mexican tax ID) helps keep that withholding to a minimum. An accountant sets up the arrangement that fits you; the figures change every year, so confirm the current one.

Finally, renting by season is running a small business: you have to receive the guest, hand over and take back the keys, clean between stays, handle the unexpected and answer reviews. If you live abroad, you cannot do that remotely. That is where we come in: we manage the property, look after the guests and report back to you, so the income arrives without you having to be here.

Before buying to rent by season, check the condominium bylaws: some limit or prohibit it.
Seasonal renting is treated as lodging: it may require municipal registration or a license and triggers the state lodging tax (charged to the guest).
On the income you pay income tax (ISR), and VAT when there are lodging services. Platforms usually withhold taxes; having an RFC helps them withhold less.
Running the rental requires a local presence (check-in, cleaning, support). If you live abroad, we manage it for you.

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