Inns
Tax incentive for inn operations providing small-scale lodging with personalized service and distinctive character.
7 min
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Section Code:
2051.01 (b)-13
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Purpose:
Visitor Economy — 2051.01 (b)-13
Overview
The Inns designation under Section 2051.01(b)-13 of Act 60-2019, as amended, provides preferential tax treatment for inn operations offering small-scale lodging with personalized service. This designation supports intimate accommodation options that provide character-rich experiences distinct from larger hotels.
Qualifying inn operators may receive reduced corporate income tax rates, property tax exemptions, and municipal tax relief. The program attracts operators of small lodging establishments typically featuring fewer rooms, personalized service, and distinctive character.
The key distinction is the small scale and personalized nature compared to larger hotels. Inns typically offer limited rooms with individualized service and unique property characteristics.
Key Benefits
Reduced Corporate Income Tax Rate
Inn operators may receive reduced rates on accommodation income.
Property Tax Exemptions
Inn properties, furnishings, and facilities may receive property tax exemptions.
Municipal Tax Relief
Inn operators may receive exemptions from municipal license taxes.
Boutique Tourism Support
Inns provide distinctive accommodation experiences that enhance tourism diversity.
Requirements & Obligations
Inn Facility Standards
Facilities must meet standards for inn operations including appropriate room counts, common areas, and service amenities.
Service Quality
Inns must maintain quality standards and provide personalized guest services.
Licensing Requirements
Inns must obtain tourism licenses and comply with accommodation regulations.
Employment Requirements
Inn operators must employ Puerto Rico residents.
Reporting Requirements
Annual reports document inn operations, occupancy, revenues, and employment.
How to Apply
Applications typically require four (4) to eight (8) months. Applications include property descriptions, operational plans, and financial projections. Review evaluates facility standards and service capacity. Upon approval, operators complete setup and commence operations.
This information is educational and should not be considered legal or tax advice. Applicants should consult with qualified legal and tax professionals familiar with Puerto Rico incentive programs before making any business decisions or submitting applications.
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