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Deputies approve text draft of bill to
regulate online hosting similar to Airbnb


By the A.M. Costa Rica staff 
 
The deputies of  the Economic Affairs Committee Tuesday approved a replacement text for bill # 20.865 "Law for the regularization of non-traditional rentals and its intermediation through digital platforms," similar to the rentals of Airbnb.

This bill has the goal that non-traditional rentals pay taxes on their services and thereby increase government revenue while regulating that commercial activity as well.

The project would apply to all tourist rentals in homes, apartments, villas, chalets, and bungalows, among others as well as guaranteeing users security and protection when they purchase the service through the platform.

The text approved Tuesday, which will be brought to the attention of the Legislature, contains adjustments related to the rights of the users and the obligations of the non-traditional rental service providers. Owners, for example, must be registered at the Costa Rican Institute of Tourism, and the General Directorate of Taxation, as well as paying the Municipal License tax, to obtain the right to offer rentals.

Regarding the municipal issue, the text was sent to the Office of the Attorney General to verify if the rentals on internet platforms should pay Municipal License tax or not. The response of the Attorney General will be added to the main law text.

Deputy Roberto Thompson said that the project represents a major boost to the tourism sector. "There is a very important segment of people who are using this type of accommodation in Costa Rica, through this law, we are trying to regularize and establish taxes and guarantee minimum conditions."

This bill also incorporates the obligation to have facilities for persons with disabilities, such as ramps for access to wheelchairs.

The next phase of the bill is the analysis by the deputies of the Legislative Assembly and then, they will take the final decision of approval or rejection.

As A.M. Costa Rica reported on Feb. 11, the Costa Rican Chamber of Hotels made a call to the deputies of the Economic Affairs Committee of the Legislative Assembly, to expedite the approval of the new bill.

According to the Chamber, the bill is practically ready for the deputies to approve it tomorrow, Tuesday.

"The hotel business sector is requesting a quick and transparent procedure for the bill to regulate non-traditional lodging and digital platforms in the country," said the Chamber in its statement.

According to the Chamber, this bill will regulate informal lodging services, will generate more tax revenues for the government, will protect tourists and will create a fairer environment of competition.

The Chamber insists that the deputies who evaluate the project address the positive effect that this will have on government finances, on the protection of consumer interest (tourists), on the climate of competition and encouragement to the private investment in new hotel projects.


  
A.M. Costa Rica wire services photo

The next phase of the bill is the analysis by the deputies of the Legislative Assembly and then, they will take the final decision of approval or rejection.



To the Chamber, the project is a priority for the country, where the largest income in foreign currency comes from tourism.

"We remind the deputies that the formal hotel sector of this country has contributed for many years with the payment not only of sales tax but with 3 percent of the tax from the Costa Rican Tourism Institute."

Regarding the issue of fair competition, the Chamber says that in the case of hotels, in addition to paying taxes, they must invest large capital to comply with specific rules and compliance to protects people with different abilities, while the informal hosting sites are not compliant and don't pay taxes.

One of the points made about non-traditional housing, is the case of the villa where a U.S. citizen Carla Stefaniak was reported in A.M. Costa Rica in Nov., 2018.

Ms Stefaniak was murdered on Nov. 28. Her body was found a short distance from the villa-hotel where she stayed in the town of San Antonio in Escazú*. She rented the villa through Airbnb.

The Municipality of Escazú* confirmed that villa has been closed by the government officials because the owner does not have the necessary permits allowing the B & B to offer accommodations to tourists. As Mr. Carlos Bejarano, the spokesman for the municipality, said, "The place had not had an operating license since 2013. So it was closed."



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Should the deputies speed up the approval of the law to regulate the B&Bs? We would like to know your thoughts on this story. Send your comments to news@amcostarica.com

*Link to reach the place map.




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