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Mexico City becomes the first city in Latin America to tax the activity of Airbnb

Mexico City (CDMX) will be the first city in Latin America where Airbnb, the online vacation rentals marketplace company, will pay taxes for their operation.

Starting on June 1st, Airbnb will start to charge 3 percent of accommodation tax on each reservation made in Mexico City, as indicated by the Airbnb’s Head of Global Policy and Public Affairs, Chris Lehane. During 2016, Airbnb generated 1,654 million of Mexican pesos (around 88 million dollars) in Mexico City, while its revenues in this area increased 174% compared to the figures of the previous year, 189% in the whole country.

This agreement arose from a reform to the tax laws approved in 2016 by the legislative chamber of the city. “To underscore Airbnb’s long-term growth commitment in Latin America, the company will open local offices in both Mexico City and Buenos Aires, appart from the current presence in Sao Paulo, Brazil”, Airbnb said.

“This reform will give a substantial benefit to Mexico City: by increasing its position and due to the fact that it will support in the region the shared economy”, claimed the Head of Government of the Federal District, Miguel Angel Mancera, member of the Mexican progressive Party of the Democratic Revolution (PRD). “It is our response to the demands of the owners of hotels”, said Mancera. Additionally, he stressed that the new protocol puts the capital on the cutting edge of the promotion of innovative platforms.

“It is a niche that does not compete with the hotel activity of Mexico City. The owners of these Airbnb properties host on average 24 nights a year, that is, it is not a hotel, but if you have a very nice house, you might have a couple of rooms that you never use, you sign up in this platform and one day you have someone to host”, said the Head of Government.

Mexico Airbnb

More information at El Universal

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