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Tourist Villas
Tax incentive for tourist villa rental operations providing self-contained vacation accommodations with private facilities.
7 min
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Section Code:
2051.01 (b)-11
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Purpose:
Visitor Economy — 2051.01 (b)-11
Overview
The Tourist Villas designation under Section 2051.01(b)-11 of Act 60-2019, as amended, provides preferential tax treatment for villa rental operations offering self-contained vacation accommodations. This designation supports vacation rental properties providing home-like amenities and private accommodations for tourists.
Qualifying villa operators may receive reduced corporate income tax rates, property tax exemptions on villa properties, and municipal tax relief. The program attracts villa developers, vacation rental operators, and self-catering accommodation providers.
The key distinction is the focus on self-contained villa accommodations with private facilities rather than hotel-style services. Tourist villas typically feature kitchens, separate living areas, and residential character.
Key Benefits
Reduced Corporate Income Tax Rate
Villa operators may receive reduced rates on rental income.
Property Tax Exemptions
Villa properties, furnishings, and facilities may receive property tax exemptions.
Municipal Tax Relief
Villa operators may receive exemptions from municipal license taxes.
Extended Stay Tourism
Villas attract longer-stay tourists and families seeking home-like accommodations.
Requirements & Obligations
Villa Property Standards
Villas must meet standards for self-contained vacation accommodations including kitchens, living areas, and appropriate amenities.
Property Management
Villa operations must maintain quality properties, housekeeping standards, and guest services.
Licensing
Villa operators must obtain tourism licenses and comply with vacation rental regulations.
Employment
Villa operations must employ Puerto Rico residents in property management and services.
Reporting
Annual reports document villa 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. Upon approval, operators complete property setup and commence villa rental 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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