Rental of housing for digital platforms as Airbnb and Booking would be subject to a regime of record mandatory, tax compliance and state supervision, as established by the bill that creates the Condominium Superintendence which, among other aspects, would regulate the short rent within residential areas in the country.
The initiative is authored by deputy Tobías Crespoof Fuerza del Pueblo, and dedicates an entire chapter to the condominiums of short rentconditions the legality of this activity to an express authorization of the internal regulations of each condominium, and provides the registration in official records and compliance with tax obligationsin addition to empowering the State to suspend or cancel the operation of units that fail to comply with the rules of coexistence.
The project defines how short rent the usual rental of spaces for short or medium periods, either individually through digital platforms or through centralized administration schemes, recognizing the right of the owner to dispose of their property, but subordinating it to the right to tranquility of the community, security and residential order.
One of the axes of the proposal is the creation of the National Registry of Rental Condominiums and Short Rent, which would be under the administration of the Condominium Superintendencein which both the condominiums that allow this type of rental and the units offered must be registered, to which a unique code.
In its article 22, the project establishes that the registration in this record “will be an essential requirement” for the legality of the activity.
Fiscal control
In tax matters, the initiative provides that everything owner or condominium that allocates units to short rent must be registered with the General Directorate of Internal Taxes (DGII) and emit tax receipts in accordance with the Tax Code.
Compliance with these obligations, as stated in article 23 of the project, is established as a condition for operate legallywithout creating new taxes, but integrating the activity of Airbnb o Booking to a tax control system.
In addition to the tax aspect, the project requires that the short rent can only be carried out when the condominium regulations expressly authorize it and establish clear rules on capacityschedules, use of common areas and coexistence protocols.
The legislative piece also imposes compliance with safety, health and risk prevention standards, as well as the hiring of insurance that cover damage to common property and risks associated with the activity of lodgingin accordance with article 23 of the proposal.
Damages and penalties
The proposal assigns direct responsibility to owners for damage, noise or improper conduct of their guests, and obliges condominium administrations to implement entry and exit controls to avoid discomfort or crowds.
In cases of repeated non-compliance, the Condominium Superintendence can order corrective measures wave temporary suspension of rentier activity, as established in article 24 of the piece.
The project also prohibits residential condominiums from operating as “undercover hotels“, understood as those where there is massive rent of units, centralized administration with its own hosting services or other practices that distort the residential nature of the property.
The practice of “hidden hotel”, according to article 25, may be sanctioned with finessuspension or cancellation of record and, in serious cases, the closing of space.
Supervision of short rentals would fall to the Condominium Superintendency in coordination with the DGII, the Ministry of Tourism and the city councils, and the sanctions will be applied guaranteeing due process and the right to defense.
Executive Power sought control, but backed down
This same year, through decree 30-25, the Executive power sought the creation of a regulation to apply the tax on the transfer of industrialized goods and services (Itbis) to the digital platformswhich included Airbnb.
The government order was signed in January and would take effect six months later, but the Executive power eliminated the decree in April when it was disclosed by Free Diary.
Alternative accommodations
According to Jacqueline Moratechnical vice minister of Ministry of Tourismthe Dominican Republic has 136,000 rooms available that belong to non-hotel accommodation, promoted through Airbnbwhich has generated, in his opinion, the need for regulations that guarantee quality and safety for tourists.
