Taxes for a rent of a property.


The General Sales Tax Law provides in Article first that renting hotels, motels, boarding houses or houses is levied with a sale tax of thirteen percent.

In the case of rental housing, the Tax Ministry has reiterated the obligation to pay the sale tax, all in accordance with the clarification made on July 31, 2014 to a law against tax fraud (Proyecto de Ley Para Mejorar La Lucha contra El Fraude Fiscal), which was submitted to the Legislative Assembly for approval.

In accordance with the provisions of the bill, the lease of houses for residential use for periods less than one month, it is taxed with sales tax of thirteen percent. The measure seeks to strengthen the collection of the sale tax, claiming that the lease of houses has operated as an informal sector that fails to pay taxes.

Also, it seeks to regularize houses rental service, making it a formal sector to avoid unfair competition with the formal sector of hotel and lodgings that do pay taxes. A similar initiative was sponsored last year by representatives of the hotel industry, who sought to regularize the competition with the condominiums that provided rental services, arguing that the condominiums had lower operating costs and didn´t pay taxes.

To identify possible contributors, the Tax Ministry might review advertising websites, newspapers, magazines, as well as physical visits to properties.

Consequently, owners of homes and condominiums that rented temporarily should be recorded as taxpayers in the Tax Ministry, and submit their statements each fiscal year.