Unlock the potential of your property by entering the thriving short-term rental market in Colombia. Before you start, it's crucial to understand the legal landscape to ensure a smooth and profitable operation. This comprehensive guide will walk you through everything you need to know to legally rent out your apartment on platforms like Airbnb.
Before You Begin: Essential Checks
Before listing your property for short-term rentals, perform these critical verifications:
1. Confirm Permissible Land Use for Tourist Accommodation
- Land Use Regulations: Check with local authorities to ensure that your property's zoning permits tourist housing. Municipal regulations may restrict or prohibit short-term rentals in certain areas.
- Documentation: Obtain official confirmation or a certificate that validates the property's eligibility for tourist accommodation.
2. Review Property Horizontal Ownership Statutes (if applicable)
- Condominium Rules: If your apartment is part of a condominium or a building under horizontal property ownership, review the bylaws and statutes.
- Tourist Use Approval: Ensure that the homeowners' association permits short-term rentals or tourist use. Some associations may have strict policies against it.
- Written Consent: It's advisable to get written approval from the association to prevent future disputes.
Mandatory Documentation
To operate legally, you must have the following documents ready before you start hosting:
1. Valid National Tourism Registry (RNT)
- What is RNT?: The Registro Nacional de Turismo (RNT) is a mandatory public registry for all tourism service providers in Colombia.
- Purpose: It certifies that your property complies with national tourism regulations.
- How to Obtain: Register online at the official RNT website.
2. Registration with TRA (Accommodation Registration Card)
- What is TRA?: The Tarjeta de Registro de Alojamiento (TRA) serves as the legal proof of a lodging contract between you and your guests.
- Requirement: All accommodation providers must report guest stays through the TRA system.
3. SIRE Code (Foreigners Reporting System)
- What is SIRE?: The Sistema de Información para el Reporte de Extranjeros (SIRE) is an online platform for reporting the stay of foreign guests.
- Legal Obligation: Mandatory reporting of all foreign guests to Migración Colombia through SIRE.
Important Note: Operating without TRA and SIRE registration can lead to fines up to 300 million COP (approximately $80,000 USD) and suspension of your RNT for five years.
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Contact UsOperational Obligations: Compliance is Key
Once you're up and running, you must adhere to the following reporting and operational requirements:
TRA Reporting
- Who to Report: All guests, both national and foreign.
- When to Report: At check-in or check-out.
- How to Report: Through the Ministry of Commerce, Industry and Tourism website.
SIRE Reporting
- Who to Report: Only foreign guests.
- When to Report: Both at check-in and check-out.
- How to Report: Via the SIRE platform.
Quarterly Payment to Fontur
- What is Fontur?: The National Tourism Fund (Fontur) collects a parafiscal contribution from tourism service providers.
- Amount: A rate of 2.5 per thousand of your operational income.
- When to Pay: Quarterly, covering the previous three months.
Billing and Invoicing Requirements
Understanding your tax obligations is crucial:
For Legal Entities (Personas Jurídicas)
- Electronic Invoicing: Mandatory issuance of electronic invoices for all transactions.
- Compliance: Align with the regulations set by the Colombian Tax Authority (DIAN).
For Individuals (Personas Naturales)
- Threshold: If your annual income exceeds 3,500 UVT (approximately 165 million COP or $40,000 USD), you must issue electronic invoices.
- Note: UVT (Unidad de Valor Tributario) is a tax value unit used in Colombia.
Important: Invoices generated by platforms like Airbnb do not replace official invoices required by Colombian law.
Renewal, Updates, and Parafiscal Contributions
Annual Renewal of RNT
- Validity: The RNT is valid for one year.
- Renewal Period: Must be renewed within the first three months of each year.
- Update Information: Use this opportunity to update any changes or confirm existing information.
Parafiscal Contributions to Fontur
- Requirement: Before renewing your RNT, you must have paid the parafiscal contributions for the previous year.
- Calculation: The contribution is 2.5 per thousand of your operational income. Payment Records: Keep all payment receipts for verification.
Suspension and Cancellation
- Inactivity: If you suspend operations, inform the Chamber of Commerce to temporarily suspend your RNT.
- Non-Renewal Consequences: Failure to renew your RNT for two consecutive years will result in cancellation.
Stay Compliant, Stay Confident. Ensure your property meets all legal requirements.
Contact UsUnderstanding TRA and SIRE Reporting
TRA (Accommodation Registration Card)
- Purpose: Serves as legal proof of the lodging contract with your guests.
- Who Must Report: All accommodation providers, both individuals and companies.
- Reporting Platform: TRA Portal.
SIRE (Foreigners Reporting System)
- Purpose: Mandatory reporting system for the arrival and departure of foreign guests.
- Legal Basis: Required by Migración Colombia for security and statistical purposes.
- Reporting Platform: SIRE Portal.
Key Differences Between TRA and SIRE
| TRA | SIRE | |
|---|---|---|
| Guest Type | All guests (nationals and foreigners). | Only foreign guests. |
| Reporting Times | At check-in or check-out. | Both at check-in and check-out. |
| Penalties | Operating without reporting can result in substantial fines and suspension of your RNT. | Fines ranging from 8 to 40 minimum monthly wages (~$2,000 to $10,000 USD) for failure to report. |
Final Thoughts
Operating a short-term rental in Colombia offers lucrative opportunities but comes with significant legal responsibilities. Compliance not only protects you from hefty fines and sanctions but also enhances your reputation among guests and within the community.
Navigating these legal requirements can be complex. At SomeNook, we specialize in real estate investment consulting and short-term rental management in Colombia. Our services include:
- Legal Compliance Assistance: Helping you obtain necessary registrations and permits.
- Property Management: Handling day-to-day operations, guest communications, and maintenance.
- Marketing Strategies: Optimizing your property listings to maximize occupancy and revenue.
- Financial Management: Overseeing invoicing, tax obligations, and financial reporting.
Contact us today to ensure your short-term rental business in Colombia is both profitable and fully compliant with all legal requirements.