Vacation rentals: rules and registration

Offering your house, apartment or a room to tourists by the night — on your own or through a digital platform — is not the same as leasing a home for months. For the law it is lodging, a tourist activity: the Organic Law for Strengthening Tourism Activities (art. 5, quoted in the legal basis of the Tourism Registry page of the Official Procedures Guide) lists lodging among the tourist activities and requires those who provide them to obtain the Tourism Registry (Registro de Turismo) and the Single Annual Operating Licence (Licencia Única Anual de Funcionamiento, LUAF) for each activity they carry out. This guide explains both procedures and the obligations that come with them.

The category that applies to you

Since September 2023 there is a category designed for this kind of lodging. According to the Ministry of Tourism's press release 085, the Ministry issued Ministerial Agreement 2023-011, published in the Official Register (supplement 402, 22 September 2023), with the Regulation on Tourist Lodging in Residential Properties (Reglamento de Alojamiento Turístico en Inmuebles Habitacionales), aimed at regularising lodging offered through channels such as digital platforms.

Today the registration procedure is published in the Official Procedures Guide by the Ministry of Economic and Productive Development, acting as National Tourism Authority. That page lists residential properties (inmuebles habitacionales) among the lodging types that can register and states that this category applies only to mainland Ecuador: Galápagos has its own tourist-lodging regulation.

How to obtain the Tourism Registry

1. 1

   Have your tax ID (RUC) in order

   The registry asks for the taxpayer number (RUC) of the individual or company, and the ID card of the individual or the company's legal representative. A company also needs its incorporation document and the recorded appointment of its legal representative.

2. 2

   Go to the official platform

   The procedure is done online on the SITURIN platform. In the canton of Quito, however, tourist establishments file with the Metropolitan Public Company for Tourist Destination Management (Quito Turismo), in its own system.

3. 3

   Declare the lodging's information

   Fill in your details, the property's general information and the tourism accreditation information, and submit the request. The system issues the Tourism Registry Certificate with a QR code. According to the Official Procedures Guide, the procedure is free of charge.

4. 4

   Get ready for the inspection

   The first inspection takes place within sixty working days of the registry being issued (you may request it earlier). At it you must show the land-use permit or its equivalent and the Fire Department permit.

5. 5

   Fix what they flag

   If the inspection finds untruthful information, missing documents or non-compliance, the registry is suspended for thirty days; within that period you can request a second inspection. If you do not request it or do not fix the issues, the registry is suspended permanently.

The General Regulation of the Tourism Law (art. 47, quoted in the legal basis of the same Official Procedures Guide page) adds two rules worth keeping in mind: the registry must be obtained before starting the activity, and any change to the declared information must be updated within fifteen days. Operating without a registry brings the fines set by the Tourism Law and closure until the registry and licence are obtained.

The municipal licence (LUAF)

The LUAF is the municipal authorisation for your lodging to operate in the canton, and it is paid through a fee each municipality sets by ordinance. Since the procedure and the fee vary from canton to canton, ask the municipality for the exact amount; if you are unsure about your case, check with a lawyer or notary.

Your obligations as a host

• Keep a guest register: the Ministry of Tourism reported that the regulation asks for the name of the person contracting, the length of stay, the number of guests distinguishing adults from minors and contact phone numbers, and that the host keeps it for six months.
• Handle that data under the Organic Law on Personal Data Protection: you need a lawful basis, such as performing the contract or a legal obligation (art. 7); ask only for the data strictly necessary (art. 10, relevance and minimisation) and keep it with adequate security measures (art. 37).
• Advertise truthfully: Cuenca's ordinance, for example, requires services to be promoted without false, altered or misleading information.
• Report your income: what you charge for lodging is income reported in your income-tax return. How you invoice and which VAT applies depends on your tax regime: confirm it with the SRI or an accountant.
• Check your building's or complex's internal rules before you list: they may have rules on visitors, common areas and the use of the apartments.

Vacation rental or lease?

If you are offering a home for someone to live in for months under a lease, the tenancy rules apply, not the tourism rules: see our guide to renting. If you offer stays of nights or weeks to travellers, with lodging services, you fall under the tourism rules described here. When your case sits in between — stays of several weeks, for example — check with a lawyer or notary before choosing the type of contract.

Mistakes to avoid

• Taking guests before you hold the Tourism Registry.
• Believing the Tourism Registry replaces the municipal licence: they are two different procedures, and the LUAF is renewed every year.
• Not keeping the guest register, or asking for and storing more personal data than necessary.
• Advertising photos or amenities the property does not have.
• Working out the return without counting the municipal fee, the taxes and low-occupancy months.