Rules and laws in Puerto Rico

[Jacob670]

Hello and thanks in advance. I am looking at purchasing a property in Puerto Rico. What laws and rules are there before I can list it as an AirBnB rental? I read I have to first obtain a license for small business owners. How long does it take to obtain the license? Is it difficult to get? Anything else I need? All information is helpful and appreciated. 

[Sybe]

Hi @Jacob670 , it sounds like you're planning to embark on a very exciting new adventure!

It can be a challenge sometimes to find local Hosts who know about laws and regulations as this is a global Community Center. You could check if there's a Facebook Host Club for Puerto Rico Hosts and post your question there as well. You can find the Host Clubs here: https://community.withairbnb.com/t5/Get-Local/ct-p/en_clubs

[Nerissa-And-Josh0]

I’m a current host in PR and as far as I’m aware, you do not need a local business license. You will need to register the property as a new hotelier with the Puerto Rico Tourism Company and also purchase a bond with a local insurance company which the PRTC helps connect you with. This bond insurance renews annually and is inexpensive (about $100/year). Your PRTC registration also allows the booking platforms to collect and pay local tourism taxes on your behalf without you having to go thru any extra steps on your own. That’s what I have been doing for the last several years without issue. Hope this is helpful!

[Elba-L-0]

The problem now is when you going to paid local taxes to the town where the AIRBNB is they want you to have a fire inspector, sanitation inspection,back ground check,Taxes been full paid for the property,comercial business license,ARPE permit.

[Zoraida27]

Hi @Nerissa-And-Josh0  I'm looking to air bnb my house in orocovis PR. The house is ready to go. If everything goes well I will be in puerto rico Thursday -Saturday. I read online that I should go to hacienda to fill out A Merchants Registration Certificate is required. Is that correct?

[Zoraida27]

Also, can I register the property as a new hotelier with the Puerto Rico Tourism online? 

[Donna1507]

Hi Zoraida, I am currently in the same boat. Trying to find out if the Merchant's Registration is necessary. In trying to register the property with the Room Tax of PR, it is telling me that I need the merchant registration. Were you able to find anything out?

[Eveka1]

Hi, where does one add the hotelier number on airbnb? When I go to taxes, the choices are to use an SSN or an EIN. 

[Jennifer5555]

Hi Eveka1, did you ever find out how to add your PRTC hotelier number? I have tried searching and can not find it anywhere and I want to make sure that the 7% that Airbnb is withholding gets to the right place. Any information or advice would be greatly appreciated. Thank you!

[Carmen1723]

Hello, 

I see you are from NY, Like myself. I too host in Puerto Rico .  I did id the merchant certificate & Bond. My question is how do you file your taxes? Must I file in Puerto Rico? I have a 9-5 and file in NY but not sure if I am supposed to file anything in P.R? hoping you can help with this question

[Ariana1768]

Hi Carmen! Would you be able to find out how to file the taxes? I’m struggling too. I would appreciate any information. 

[Liz6914]

Thank you for that information. I plan on buying a property to have as airbnb and I been looking for as much information as possible.

[Melissa2862]

Hello Nerissa.  I was hoping you can help me with giving me some direction on the documents required to set up our airbnb.  I have set up LLC's before but I am finding it difficult to find any information on setting up one in Puerto Rico.  Also, are you able to 

[Emilie]

Hi @Melissa2862, 

I'll tag in @Nerissa-And-Josh0 for you, in case they have more insights they can come back to share. 

If you need more advice, I'd also recommend you 👉 start a new conversation so your question is more visible and other hosts can advise further. 

I hope this helps 🙂

Emilie

[Jarl15]

Folks,

I am reading a lot about vacation rental requirements in PR.  I will say they were/are somewhat loose but tightening quickly.  I am a host of 5+years and I am always surprised when this topic comes up as Hosts don't seem to know what I am talking about.  The writing is on the wall.  They are moving towards enforcement of regulations.  I am one of the few who are ahead of the game as I am very sure that the bnb legality shut down is around the corner.  I pay a Volume Tax to Rio Grande and it takes me about 7 hours per year in city hall to accomplish this.  It is designed to be very difficult as with most things in PR government.  They have required building permits, occupancy permits, deed, passports, pictures, architectural drawings, sales documents, ss information, and on and on along with inspections mentioned above.  I provide all this information so far every year as they change requirements or web site software yearly?  Enforcement is coming and has already begun.  The main issue:  getting building permits.  Very expensive and difficult.  Total enforcement will be easy for government as they will just restrict BNB advertising prior to completion of legalities.  Good Luck!  PR is a beautiful Island of small business with a government that does not support small business and actually complicates owners out of business!  Its really a shame!  Some of this is forecasting as it is not publicized or really talked about much.  Wake up owners and VRBO/AIRBNB and organize!  We add a lot of economy to this island!