Bienes Raíces en Playa Del Carmen y Tulum Mexico | How to legally rent your property in Mexico

Renting out your property in the Riviera Maya: legal, tax, and management tips

Turning your home in paradise into a source of income

Many foreign buyers looking at real estate in the Riviera Maya — whether in Playa del Carmen, Akumal, Puerto Aventuras, or Tulum — consider the rental income potential of their property as part of the investment. And it’s easy to see why: the region continues to attract digital nomads, wellness travelers, and vacationers year-round, with high demand for short- and mid-term rentals.

But renting out property in Mexico involves more than listing it on Airbnb. From permits and tax registration to property management and guest services, there are important steps that must be followed to operate legally and efficiently.

Step 1: Register with SAT and obtain your RFC

In Mexico, rental income is subject to taxation, and to comply, owners must register with the Tax Administration Service (SAT) and obtain an RFC (Federal Taxpayer Registry number). This is required whether you're a Mexican or foreign resident.

If you're a non-Mexican resident, this process usually involves working with an accountant or legal representative. It's also necessary for issuing facturas (official digital invoices) to platforms like Airbnb or Booking.com.

Step 2: Choose the right rental activity structure

There are three main ways to legally rent out your property in Mexico:

1. As an individual (physical person with business activity)

2. Through a Mexican corporation

3. Via a property management company that handles reporting and remits earnings

Each option has different implications for taxes, deductibles, and operational control. Most individual owners opt for the first option, unless multiple properties are involved.

Step 3: Understand the taxes involved

As of 2023, rental income is subject to:

• ISR (Income Tax): progressive rate between 1.92% to 35% depending on net income

• IVA (Value Added Tax): 16% on rental income for furnished properties used for short-term stays

• Withholdings: platforms like Airbnb may withhold taxes automatically if properly linked to your RFC

Proper accounting can significantly reduce your tax burden through deductions — including maintenance, depreciation, utilities, and management costs.

Step 4: Hire a property manager (optional, but recommended)

If you don’t live in Mexico full-time or prefer hands-off ownership, hiring a professional property manager is essential. They can handle:

• Guest communication and check-in/out

• Housekeeping and maintenance

• Booking platforms and pricing strategy

• Permit compliance and invoice issuance

• Emergency support for guests

Having someone on the ground improves guest experience and increases your earning potential.

Step 5: Get your rental permit (Licencia de Funcionamiento)

Some municipalities (like Solidaridad, which includes Playa del Carmen) require a local operating license for short-term rental properties. This involves presenting:

• Proof of ownership

• Official ID and RFC

• Utility bills and property layout

• Payment of fees and municipal forms

It’s important to consult local professionals, as requirements may vary between Playa, Tulum, Akumal, and Puerto Aventuras.

Renting your property in the Riviera Maya can be a smart way to maximize your investment, but it must be done right. Compliance with Mexican tax law and municipal requirements is not optional — and doing so can protect you from penalties while unlocking the full potential of your asset.

At BuyPlaya, we connect clients with trusted professionals — from tax advisors to property managers — so they can focus on enjoying their home, while someone else takes care of the rest.