Rentals Ecuador New Law (2019)

The Ministry of Tourism issued the Regulation of Accommodation in Real Estate for use in tourism [1]. The Ministerial Agreement seeks to regulate real estate accommodation as a type of tourist accommodation. The Agreement, which is applicable throughout the country, except in the Province of Galapagos, where this type of accommodation cannot be exercised, establishes in the main, the following:

It is applicable to: (i) owners, tenants and administrators of property intended for tourist's use; the marketers or intermediaries of this offer; (ii) those who reserve or are users of this type of tourist accommodation; and, (iii) who, by any means, promotes, disseminates and / or sells this accommodation offer.

Housing for tourist use is understood as the usual and remunerated provision of the non-permanent lodging service, to national or foreign guests, in any property for tourist use, other than the establishments provided for in the Tourism Accommodation Regulation.

Tourism registration and single annual operating license:

To provide the service of accommodation in real estate for tourist use it is mandatory to have the tourism registry and the single annual operating license.

To obtain the registration it is required, among others:

Ownership deed of the property;

Document issued in condominium assembly authorizing the provision of the service of this type of accommodation;

Valued inventory of fixed assets and payment of the tax uno por mil (one per thousand) on the value of fixed assets.

Certificate of Report of positive or favorable compatibility of land use granted by the Autonomous Municipal Government or Metropolitan Decentralized Government, or equivalent document;

To obtain the single annual operating license, it will be required, among others:

ø Tourism registration certificate granted by the National Tourism Authority;

ø Certificate of being up to date in the payment of the tax uno por mil (one per thousand) on the value of fixed assets, granted by the National Tourism Authority;

ø The properties for tourist use will be of single category.

ø The properties for tourist use must have an external identification, which will include a control method and digital security such as a QR code or similar, which will include the general data of the tourist establishment,

Advertising and marketing:

Deceptive advertising is prohibited in regards to the property.

The tourist accommodation service can be promoted and commercialized through the virtual channel, digital media, social networks or other media.

The tourist services' agency or any person who performs intermediation activities of this type of accommodation will be jointly and severally liable with the host of the property for tourist use.

Guests and users will have, among others, the following rights:

ø To be informed about the characteristics of the property, its area, capacity, equipment and location; the price, taxes, fees, charges, payment methods, refunds and cancellations that apply to the contracted services;

ø To be informed of the policies and procedures applicable to the accommodation offered;

ø To receive the service as offered and promoted;

ø To receive an invoice for the contracted accommodation service;

ø To report any irregularity of the contracted services.

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Guests and users will have, among others, the following obligations:

ø To pay the value of the services received and agreed upon;

ø To respect the maximum capacity of the property and the rights of the condominiums or neighbors, and to comply with all current regulations;

ø To assume their responsibility in case of causing damages to the property or to third parties.

The host will have, among others, the following obligations:

ø To obtain the tourism registration and the single annual operating license;

ø To provide the guest's/user's information to the authority that requires it;

ø To display the single annual operating license and the identification of the property that allows recognizing the suitability of this type of tourist accommodation;

ø To maintain the facilities, infrastructure, furniture, supplies and equipment of the establishment in perfect conditions of cleanliness and operation;

ø To notify the transfer of ownership or modification of the information that was used to register the property;

ø To inform the competent authorities in case of incidents and / or accidents;

ø To provide the necessary facilities for inspections to be carried out;

ø To comply with the obligations of protection of guests'/users' personal data;

ø To inform the National Tourism Authority, until December 1st of each year, about the ongoing rates, including taxes.

The host is prohibited of the following, among others:

ø To offer and / or provide the accommodation service regulated by these regulations, in a part of the property, or a room, or a part of the rooms; or have common or shared rooms;

ø To perform brokerage activities, tourist operation, tourist land transport, tourist guidance, directly or through promoters;

Deadlines:

Within a period of three months from the effective date of the regulation, the digital system that will allow the registration of real estate for tourist use must be developed.

Those who are providing this service will have a period of three months, from the publication of this Agreement, to obtain registration with the National Tourism Authority.

For more information about this article, please email us at info@ecuaassist.com