The Mexican government and most of the states have recently changed their tourism legal framework, introducing severe scrutiny for temporary platform lodging. While taking reservations for a vacation rental is usually legal. But when the process becomes selling reservations to claim future dates strongly shifts into a “raffle” or “sweepstakes” and carries heavy legal risks in Mexico.
The legal and platform implications depend on exactly how the sale is structured. When “Selling” Reservations (Timeshares / Memberships) in advance, you may be heavily fined up to $10,000 MXN pesos and face up to 12 years (or more, as it is up to the judge) in prison.
If you are selling “packages” that allow buyers to book a rental in advance for a discount and limiting the number of booking, you may be operating an illegal timeshare or lottery.
Selling recurring timeshare blocks or ownership fractions in real estate is strictly regulated. Depending on your local jurisdiction, you must register these as timeshares or vacation clubs, or face massive fines.
The “Raffle” Danger
If you limit the number of packages sold it is illegal under the raffle, sweepstakes, or lottery.
If buyers compete for specific dates, it is illegal under the raffle, sweepstakes, or lottery.
Operating a private raffle is illegal in many regions unless registered and compliant with state gaming and consumer protection laws.
Airbnb Terms of Service: Airbnb’s Terms of Service also explicitly prohibit subletting or transferring host accounts and listings. If you are found to be running a third-party scheme or transferring ownership of reservations outside their standard booking flow, your account will be permanently suspended.
In Mexico, doing this exposes you to strict local tourism laws, heavy federal regulations, and significant tax oversight.
Morelos Specifically
While all states in Mexico must abide by the Federal Laws under the Constitution, each state may make their own laws which may be much tougher, and carry larger fines and prison sentences. What follows discusses the current laws in Morelos specifically. For those living in other states, it is recommended that you consult with the offices in your state to ensure compliance with Federal Laws.
Morelos recently overhauled its tourism legal framework, introducing severe scrutiny for temporary platform lodging.
Three Layers of Mexican Law
If you sell advance membership packages for future stays in a Morelos property, you must navigate three layers of Mexican law, and you can almost be sure to charged under one or more, as the state or federal government would love to seize your property and bank account, while you fight it out in court which can take up to five years.
1. The New Morelos Tourism Law (Ley de Turismo para el Estado de Morelos)
Morelos explicitly regulates digital platform hosting.
Mandatory Registry: You cannot operate legally without joining the state’s Padrón de Personas Anfitrionas (Host Registry) and the Registro Estatal de Turismo.
The Tax Trait: Morelos mandates a 3.75% Lodging Tax (Impuesto sobre Hospedaje) on short-term rentals to match commercial hotels. If you collect membership money upfront off the platform, you are directly responsible for declaring and paying this state tax, alongside federal VAT (IVA) and income tax (ISR).
Commercial Redirection: If you sell unassigned “packages” that cross a high threshold of occupancy or use multiple properties, state authorities can legally reclassify your property from a residential short-term rental into a formal commercial establishment or hotel, requiring high-cost commercial land use permits (uso de suelo).
2. Federal Timeshare Laws (NOM-029-SE-2021)
In Mexico, selling the “right to use” a property for future vacation periods without transferring property deeds is legally defined as a Tiempo Compartido (Timeshare) or vacation club membership.
PROFECO Registration: Under Article 65 of the Federal Consumer Protection Law, you are legally forbidden from selling or pre-selling any timeshare-like memberships unless your contract is explicitly vetted and registered beforehand with PROFECO.
Strict Liability: Under NOM-029-SE-2021, you must provide buyers with a mandatory 5-day rescission period (right to cancel for a full refund), back your claims with verified insurance, and ensure all advertising is entirely verifiable.
Selling “packages” informally without these protections carries massive federal fines and property closure.
3. Federal Gaming Laws (Sorteos y Sorteos Comerciales)
If your membership package model limits numbers and uses a draw or lottery system to award specific popular dates (like Cuernavaca’s peak weekend or holiday dates), it falls directly under the Ley Federal de Juegos y Sorteos.
SEGOB Permits Required: Running any commercial scheme where allocation relies on luck, draws, or limited supply scrambles requires an advance permit from the Ministry of the Interior (SEGOB).
Criminal Liability: Operating an unauthorized raffle or lottery scheme (sorteo ilegal) in Mexico is a federal crime that can result in the seizure of the property and criminal prosecution.
Operating an unauthorized or illegal raffle (sorteo ilegal) in Mexico is a federal crime. Under the Ley Federal de Juegos y Sorteos, the penalties apply not only to the person running the operation but also to anyone who rents a space for it or knowingly participates.
The primary criminal and administrative consequences dictate specific penalties based on your role in the operation.
1. Organizers, Business Owners, and Managers
If you manage, organize, or sell tickets/packages for an unauthorized raffle or lottery scheme, Article 12 of the law dictates:
Prison Sentence: 3 months to 3 years of imprisonment.
Criminal Fines: 500 to 10,000 Mexican Pesos.
(Note: While the base currency fine in the text is low due to the age of the law, judges scale financial penalties or add charges like tax evasion).
2. Landlords and Venue Hosts
If you knowingly rent out a property, home, or commercial space to host or execute an illegal raffle scheme, Article 13 dictates:
Prison Sentence: 1 month to 2 years of imprisonment.
Criminal Fines: 100 to 5,000 Mexican Pesos.
3. Immediate Asset Confiscation and Closure
Administrative sanctions are often enforced immediately by the Ministry of the Interior (SEGOB) before a trial even concludes:
Property Seizure: Under Article 14, all tools, objects, money, and assets (which can include the property itself if used directly to facilitate the fraud) are subject to immediate confiscation by federal authorities.
Facility Closure: SEGOB will issue an immediate permanent closure (clausura) of the physical property or business establishment involved.
Aggravating Factors: Fraud and Tax Evasion
If you collect advance membership fees under a raffle structure and fail to deliver the promised stays, federal prosecutors typically upgrade the charges beyond gaming violations:
Federal Fraud (Fraude Genericó): Under the Federal Penal Code, structuring a raffle to intentionally deceive buyers carries up to 12 years in prison, scaled heavily by the amount of money taken.
Fiscal Fraud: Collecting capital off-platform without tracking lodging taxes or federal VAT (IVA) triggers immediate tax evasion audits by the Mexican Tax Administration Service (SAT).
Author: G. William Hood
Author, Columnist, Educator, Epistemologist, and Publisher
