Quick Answer
Baja California Sur requires short-term rental operators to register with the state tax authority and collect the 3% lodging tax (ISH). An RFC (Mexican tax ID) is needed for tax reporting. Formal licensing requirements are evolving as the state implements new regulations. Working with a local property manager ensures compliance with current rules.
Detailed Answer
Short-term rental regulations in Baja California Sur are evolving, and staying compliant is straightforward with the right guidance. Currently, rental operators must register with the state tax authority and collect the 3% ISH (lodging tax) from guests. An RFC (Mexican tax ID) is needed for proper tax reporting and to avoid the higher flat-rate withholding that platforms impose on unregistered hosts. There is no single "rental license" equivalent to what some US cities require, but the regulatory landscape is expected to formalize further in coming years.
Some municipalities within Los Cabos are developing additional registration requirements, and HOA bylaws may impose their own rules — including minimum stay lengths, maximum guest counts, and noise restrictions. Platforms like Airbnb and VRBO are increasingly cooperating with Mexican tax authorities on automatic reporting, so operating under the radar is neither advisable nor necessary given how simple compliance actually is.
Working with a local property manager is the easiest way to ensure you meet all current requirements without needing to track evolving regulations yourself. Our team stays current on every regulatory change and connects rental buyers with managers who handle compliance as part of their service. For the latest on rental regulations in your target area, contact us or explore our FAQ hub.