Airbnb to Pay Taxes in Panama

The company has proposed to the government that a tax collection scheme be implemented for property owners that rent out rooms to tourists using its web platform.

Thursday, July 20, 2017

Airbnb's idea is to establish a system similar to the one recently implemented in Puerto Rico, where the company signed an agreement with the government to collect taxes on rentals from homeowners. 

See: "Boom in Vacation Rentals"

Gustavo Him, head of the Tourism Authority, told "... "We could be interested in a similar agreement, but first we want to consult with the private sector. That does not mean that we should ask businessmen for permission, but we are not going to do anything behind the back of the hotel industry, much less anything that harms the industry."

The proposal put forward by Airbnb, which through its platform offers about 3,200 properties for rent in Panama, comes at a crucial moment for the local hotel sector, which has failed to raise the occupancy rate above 50% in recent years.

Airbnb is also in negotiations with authorities at the Ministry of Finance of Costa Rica, who at the end of last year proposed implementing a system to collect taxes.

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More on this topic

New Attempt to Charge Tax on Holiday Rentals

May 2017

Although Airbnb offered to collect the sales tax for transactions made in Costa Rica through its platform, the Treasury is evaluating asking the US for information on the hosts.

The Directorate General for Taxation will try to exhaust all routes first with the company Airbnb, but as a second alternative, it has announced that if it does not reach an agreement with Airbnb, it could request information on the hosts, making use of international agreements for exchange of information with other governments, such as as the US.

Airbnb Could Operate Freely Outside of Panama City

January 2017

The government has proposed that Airbnb offer its services only in the interior of the country where the supply of hotels is lower and where the legal prohibition of vacation rentals is not in effect.

Authorities at the online rental company met with representatives from the government and the private sector, after a group of tourists were affected by an inspection by the ATP in an apartment which was rented out using the platform. 

Airbnb Wants to Pay Taxes in Costa Rica

December 2016

The company's proposal states that in just two months it could start making tax payments, putting to the test the responsiveness of bureaucracy against the speed of the real economy.

Airbnb, one of the leading global companies that is taking advantage of the momentum that the technological revolution has provided to the collaborative economy, has now created a housing supply available for seasonal rental in Costa Rica which is equivalent to 18% of the supply of hotels. 

Hotels are Losing War On Holiday Rentals

October 2016

In Costa Rica the total amount of accommodation available for rent through the web platform Airbnb is now equivalent to 18% of the hotels in the country.

The figure has been confirmed by the union of hoteliers, who say there is now a total of 11,000 homes offering accommodation for tourism through Airbnb. On top of this data there are also residences rented to tourists through other platforms such as Homeaway or VRBO.

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