Investment & Vacation-Rental Intelligence
The short answer
Short-term rentals are legal in Jalisco and Nayarit, but owners who rent on Airbnb or VRBO must register with Mexico's tax authority (the SAT), obtain an RFC tax ID, and declare rental income. Owners are responsible for income tax (ISR), value-added tax (IVA), and a state lodging tax (ISH). Platforms like Airbnb withhold a portion of these automatically, and the withholding rate is higher for hosts who have not provided an RFC.
Register your rental and your RFC
Every owner earning rental income in Mexico needs a Registro Federal de Contribuyentes (RFC), the federal tax ID issued by the SAT. Foreign owners can obtain one, and most work with a Mexican accountant (contador) to register and file. Without an RFC on file with the platform, Airbnb applies the maximum withholding rate to your payouts, which usually means you lose more than a compliant, registered host would.
If you own inside a fideicomiso (the bank trust foreigners use to hold property in the restricted zone), the rental activity is still yours to declare. The trust holds title; it does not file your taxes. For the full picture on ownership structure, see our guide on how to buy in Mexico.
The three taxes on rental income
Short-term rental income in Jalisco and Nayarit is generally subject to three separate taxes. A local accountant confirms the exact rates and filing frequency for your situation, because they change and depend on your tax regime.
| Tax | What it is | Who collects or pays |
|---|---|---|
| ISR (income tax) | Federal tax on your rental profit or gross income, depending on your regime | Declared to the SAT; Airbnb withholds a percentage on each payout |
| IVA (value-added tax) | The 16 percent consumption tax that applies to short-term lodging | Charged to guests and remitted to the SAT; platforms withhold part of it |
| ISH (lodging tax) | A state hospitality or lodging tax on the nightly rate | Collected per state (Jalisco and Nayarit set their own rate and rules) |
How Airbnb handles withholding
Airbnb and similar platforms withhold ISR and IVA directly from host payouts in Mexico and remit them to the SAT. The rate depends on whether you have supplied a valid RFC. Hosts without an RFC face the highest withholding. This is automatic and appears on your payout statements, but it does not replace your own filing obligations. You still need a contador to reconcile what was withheld against what you owe.
Municipal rules, HOA rules, and Nayarit specifics
Beyond federal and state taxes, short-term rentals can be shaped by two local layers. First, municipalities across Banderas Bay have moved toward requiring lodging registration and paying the lodging tax locally. Second, and often more restrictive, is your condominium or homeowners association. Many buildings in Puerto Vallarta, Nuevo Vallarta, and Riviera Nayarit set their own rules on short-term rentals, minimum stays, guest access, and amenity use. Always read the condo regime and HOA bylaws before you buy if rental income is part of your plan.
Nayarit and Jalisco are different states, so lodging tax rates and registration mechanics differ between, for example, Puerto Vallarta (Jalisco) and Nuevo Vallarta, Bucerias, or La Cruz de Huanacaxtle (Nayarit). If you own on both sides of the bay, you may file in both states.
A compliance checklist for owners
Work with a Mexican contador who handles short-term rentals, keep monthly records of platform withholding, and file on the schedule your regime requires. If you rent across both Jalisco and Nayarit, coordinate state filings. This keeps your rental fully compliant and protects your ability to declare income cleanly if you sell later.
Frequently asked questions
Do I need an RFC to rent my property on Airbnb in Puerto Vallarta?
Yes. Any owner earning rental income in Mexico should register an RFC with the SAT. Without one, Airbnb withholds tax at the highest rate, and you cannot properly declare or reconcile your income. Most foreign owners register with the help of a local accountant.
What taxes apply to short-term rentals in Jalisco and Nayarit?
Three taxes generally apply: income tax (ISR), value-added tax (IVA) at 16 percent on lodging, and a state lodging tax (ISH). Platforms withhold ISR and IVA automatically, but you still file with a contador.
Does Airbnb pay my taxes for me?
No. Airbnb withholds and remits a portion of ISR and IVA, but this is not your full filing. You remain responsible for registering, declaring income, and reconciling what was withheld against what you owe.
Can my condo or HOA stop me from renting short-term?
Yes. Condominium regimes and homeowners associations in Banderas Bay often set their own limits on short-term rentals, including minimum stays or outright restrictions. Review the bylaws before buying if rental income matters to you.