Quick Answer
Yes. Short-term vacation rentals are legal and popular in Los Cabos. Platforms like Airbnb, VRBO, and Booking.com are widely used. You must comply with Baja California Sur's 3% lodging tax (ISH) and report rental income for ISR tax purposes. Some HOAs and gated communities have restrictions on short-term rentals — check the bylaws before purchasing with rental intent.
Detailed Answer
Short-term vacation rentals are fully legal and thriving in Los Cabos. Platforms like Airbnb, VRBO, and Booking.com have become the primary channels for foreign property owners to generate rental income, and Cabo's status as Mexico's busiest resort destination ensures strong year-round demand. With over 3 million visitors passing through SJD airport annually, the addressable market for vacation rentals is enormous and growing.
To operate legally, you must comply with Baja California Sur's 3% lodging tax (ISH), collected from guests and remitted to the state. Rental income is also subject to ISR (income tax), and registering for an RFC allows you to take advantage of deductions that reduce your effective tax rate. Platforms like Airbnb may handle some tax withholding automatically, but working with a local accountant ensures full compliance and optimal tax treatment.
One important caveat: some HOAs and gated communities restrict or prohibit short-term rentals, so verifying the bylaws before purchase is critical if rental income is part of your investment thesis. Our team flags rental restrictions during the due diligence process so there are no surprises. For help identifying the best rental properties in Los Cabos, contact our team or browse our community guides for area-specific rental data.