If you’re managing a short-term rental property in Puerto Rico, you’ve likely encountered the 9% hospitality tax—and if you’re like most property owners, you’ve also discovered how confusing and frustrating it can be to file and pay it correctly.

The problem? Platforms like Airbnb and VRBO only collect 7% of the tax on your behalf, leaving you responsible for the remaining 2%. On the surface, this might not sound like much, but here’s the catch:

• The tax is based on gross revenue, not your net income.

• Monthly filings are mandatory, with strict deadlines and complex forms written in Spanish.

• Miss a payment or file incorrectly, and you could face $150 fines, 18% interest, and non-appealable penalties that can add up fast.

For example, if your rental generates $10,000 a month, you’re responsible for $200 in additional taxes. Forget to pay it, and that $200 can quickly balloon into hundreds—or even thousands—of dollars in penalties.

But don’t worry—there’s a solution. At Tropical Stay Management (TSM), we handle this entire process for you, ensuring compliance, avoiding costly mistakes, and making your rental business truly hassle-free.

Frequently Asked Questions About Puerto Rico’s Short-Term Rental Tax

Here are the most common questions we hear about Puerto Rico’s 9% hospitality tax—and how Tropical Stay Management (TSM) makes handling it completely hassle-free.

1. What is the hospitality tax for short-term rentals in Puerto Rico?

The hospitality tax is a 9% tax on gross revenue generated from short-term rentals in Puerto Rico. Gross revenue includes everything your guests pay for their reservation.

Platforms like Airbnb, VRBO, and similar services only collect 7% of the tax, meaning you’re responsible for remitting the remaining 2% to the Puerto Rico Tourism Company (PRTC) through monthly filings.

2. What happens if I don’t pay the remaining 2% of the tax?

Failing to pay the 2% balance or filing incorrectly can lead to severe penalties, including:

• Late Fees: $150 minimum per filing mistake.

• Interest: 18% annually on any unpaid tax balance.

• Non-Appealable Penalties: If you miss deadlines or fail to submit corrections, the fines are final.

For example, if your gross monthly revenue is $10,000 and you forget to pay the $200 (2%) balance, this amount could quickly escalate into hundreds of dollars due to fines and interest.

3. How often do I need to file and pay the tax?

You are required to file and pay your hospitality tax every month, with a strict deadline of the 10th day of the following month. These filings must include:

• Your gross revenue for the month.

• The tax amount collected by platforms (7%).

• The additional 2% tax you owe.

• Statistical data required by the PRTC.

Missing the deadline, even by one day, can result in fines.

4. Why is the tax process so confusing?

There are a few reasons property owners find the process frustrating:

• Complex Forms: The required forms are detailed, written in Spanish, and can be difficult to navigate without fluency or prior experience.

• Confusing Communication: The emails and notices from the Puerto Rico Tourism Company are often unclear, with small print and vague instructions.

• Strict Deadlines: The short filing window each month leaves little time for error correction.

That’s why many property owners trust TSM to handle the process.

5. How does TSM help with the 9% tax—and beyond?

Tropical Stay Management eliminates the stress of tax compliance by managing the entire process for you. Here’s what we do:

• Submit Monthly Filings: We handle all forms, payments, and required statistical data, ensuring compliance.

• Pay on Time: We make sure your tax payments are never late, avoiding fines and interest.

• Simplify Communication: We interpret notices and updates from the PRTC, so you never have to worry about unclear instructions.

• Full-Service Management: Beyond taxes, we manage every aspect of your short-term rental property—from pricing and marketing to guest relations and maintenance.

By partnering with TSM, you can focus on enjoying your rental income while we handle the details.

Want Hassle-Free Tax Management? Contact Us Today!

Avoid fines, penalties, and unnecessary stress. Let TSM take care of Puerto Rico’s 9% hospitality tax—and everything else that comes with managing your short-term rental property. Get in touch today to learn more!