Short-term rental regulations: A global outlook (2024)

The short-term rental industry is booming. According to Gitnux, a leading data provider, short-term rentals make up 20% of the entire rental market around the world. This explosive growth has transformed the hospitality landscape, offering property owners and investors new income opportunities. However, for property managers navigating this evolving industry, keeping up with the ever-changing regulatory environment can be a challenge.

Regulations for short-term rentals vary considerably across the globe, and even within countries, city-specific rules can create a labyrinth of requirements. From registration procedures and licensing to zoning restrictions and tourist taxes, these vacation rental regulations can significantly impact how you operate your short-term rental business.

This guide is designed to be your one-stop shop for navigating through short-term rental regulations around the world. 

2. What exactly is a short-term rental?

Short-term rentals are furnished accommodations rented out for shorter durations, typically ranging from a single night to a few weeks. They offer travelers an alternative to hotels, providing a more flexible and homey experience. Here’s a quick checklist to see if your rental falls under the short-term umbrella:

• Furnished for comfort: STRs are equipped with everything guests need for a comfortable stay, including furniture, appliances, dishes, utensils, linens, and towels. They’re basically move-in ready!
• Focus on short stays: The defining factor is the rental period. Unlike traditional leases, STRs cater to shorter stays. The exact maximum length can vary by location, but it generally doesn’t exceed a few weeks.
  
• Self-contained space: STRs are often self-contained units within a larger property. This could be an entire apartment, a house, or even a guest suite with its own private living space.
• Management options: The property owner might rent out the space themselves, or they might utilize professional property management companies to handle bookings and guest communication.

Is your rental a short-term rental?

If your rental offering aligns with these characteristics, then understanding the legalities of short-term rentals becomes crucial.  The following sections of this blog will delve into the regulations, permits, and potential taxes that might apply to you depending on your location.

3. What are short-term rental regulations and why do they matter?

Regulations are guidelines set by governments or authorities to ensure order and fairness. They can cover everything from building codes for safety to limitations on short-term rentals in a neighborhood. While they might seem like red tape, regulations exist to protect people, like tenants and neighbors, and ensure a smooth-running society. Understanding and following these regulations is crucial for short-term rental owners to avoid fines, legal issues, and disruptions with their neighbors or guests.

4. Benefits and problems: A look at short-term rental regulations

The short-term rental industry has exploded in popularity, transforming travel and accommodation options for tourists worldwide.  However, this growth has also spurred the development of regulations aimed at balancing the benefits with potential drawbacks.  In this section, we’ll delve into the global trends in short-term rental regulations and explore their impact on property managers.

The rise of short-term rental regulations: Balancing benefits and challenges

The surge of short-term rentals has undeniably boosted tourism in many destinations. Travelers enjoy unique accommodation options, while local economies benefit from increased tourist spending. Property owners and investors see opportunities for new income streams. However, this growth has also raised concerns:

• Housing affordability: The rise of short-term rentals can limit the availability of long-term rentals in some cities, potentially driving up housing costs for residents.
• Neighborhood disruption: A high concentration of short-term rentals in a particular area can disrupt the character of a neighborhood, leading to issues with noise, transient populations, and limited parking availability.

The maze of vacation rental regulations: How they impact property managers

To address these concerns, governments around the world are implementing regulations for short-term rentals. These regulations can impact property managers in several ways:

• Registration requirements: Many cities require property managers to register their short-term rental properties with local authorities. This registration process often involves submitting information about the property, owner, and responsible party.
• Licensing procedures: In some locations, obtaining a license to operate a short-term rental property might be mandatory. This licensing process might involve inspections to ensure the property meets safety and health standards.
• Zoning restrictions: Zoning regulations can dictate where short-term rentals are allowed to operate. Some areas might completely prohibit short-term rentals, while others might limit them to specific zones or require a minimum distance between short-term rental properties.
• Tourist taxes: Many popular tourist destinations now levy tourist taxes on short-term rentals. These taxes can vary depending on location and property type. Understanding and collecting these taxes is crucial for property managers.
• Safety standards: Regulations might establish minimum safety standards for short-term rentals, such as fire safety protocols and requirements for smoke detectors and carbon monoxide alarms.

What are the benefits of vacation rental regulations: A fairer marketplace and protected communities

While navigating regulations can add complexity, clear and well-defined regulations offer several advantages for property managers:

• Fairer marketplace: Clear regulations create a level playing field for all short-term rental operators, ensuring everyone adheres to the same standards.
• Protection for neighborhoods: Defined regulations can help mitigate concerns about neighborhood disruption by limiting the density of short-term rentals in specific areas.
• Guest safety: Regulations that enforce safety standards can give property managers peace of mind and contribute to a positive guest experience.
• Reduced uncertainty: Knowing the exact regulations allows property managers to operate with confidence, avoiding potential legal issues and fines for non-compliance.

Challenges of unclear regulations: Uncertainty and uneven playing field

The absence of clear short-term rental regulations or a patchwork system with varying rules across different cities can create significant challenges for property managers:

• Uncertainty and confusion: Unclear regulations can make it difficult for property managers to understand their legal obligations and how to operate compliantly.
• Non-compliance penalties: Operating unknowingly outside the regulations can lead to fines, license suspensions, or even property closures.
• Uneven playing field: Unclear regulations can create an uneven playing field, where some property managers operate compliantly while others exploit loopholes.

5. How do short-term rental regulations differ by region?

Europe

The regulatory landscape for short-term rentals in Europe is evolving, with some standardization efforts at the EU level but significant variations in implementation by individual countries. 

Spain

Key Regulations:

Registration requirements: All short-term rental properties in Spain require registration with the regional tourism authority. The specific registration process can vary slightly depending on the region. Property managers must obtain a unique registration number, which needs to be displayed in all rental listings and advertisements. Link to relevant resources for registration can be found on the website of the Ministry of Tourism of Spain: Ministerio de Industria, Comercio y Turismo.

Licensing procedures: In some Spanish cities, additional licensing requirements might be in place on top of registration. This is particularly common in popular tourist destinations.  Barcelona, for example, requires a specific tourist license for short-term rentals. Property managers should check with their local municipality to determine if any additional licenses are needed.

Zoning restrictions: Zoning regulations can also affect short-term rentals in Spain.  Some cities might have limitations on short-term rentals in certain areas, or restrictions on the type of property that can be used for short-term rentals (e.g., limitations on renting out individual rooms in apartments).  Property managers are advised to consult local zoning maps or contact their local government office for clarification on zoning restrictions in their specific location.

Tourist taxes:  Spain has a system of tourist taxes on short-term rentals, but the specific rates and collection procedures can vary depending on the region and municipality.  The tax is typically called “tasa turística” (tourist tax) and can be applied per guest, per night.  Property managers are generally responsible for collecting the tourist tax from guests and remitting it to the local authorities. The specific tax rate for your location can be found on the website of the relevant regional government or local municipality.

Safety standards: All short-term rental properties in Spain must comply with basic safety standards, including fire safety regulations and having a valid occupancy certificate.  More information on these safety standards can be found on the website of the Ministry of the Interior of Spain: Ministerio del Interior.

Portugal

Key short-term rental regulations:

Registration requirements:  All short-term rentals in Portugal require registration with the local authority, typically the town hall (Câmara Municipal).  Property managers must obtain an Alojamento Local (AL) license, which is the official designation for short-term rental properties in Portugal.  The registration process involves submitting specific documents and paying a registration fee. Link to information on the Alojamento Local regime can be found on the website of Turismo de Portugal, the Portuguese Tourism Board.

Licensing procedures:  As mentioned above, the Alojamento Local (AL) license serves as the primary license for short-term rentals in Portugal.  Renewals of the AL license might be required periodically, so staying informed about renewal procedures is crucial.

Zoning restrictions:  Zoning regulations can also play a role in short-term rentals in Portugal.  Some municipalities might have limitations on short-term rentals in specific areas, or restrictions based on the type of property.  Consulting local zoning maps or contacting the local Câmara Municipal is recommended to understand any zoning restrictions that might apply to your property.

Tourist taxes:  Portugal has a Municipal Tourist Tax (IMT) levied on short-term rentals.  The specific tax rate can vary depending on the municipality and type of accommodation.  Property managers are generally responsible for collecting the IMT from guests and remitting it to the local authorities.  Information on the applicable IMT rate for your location can be found on the website of the relevant municipality.

Safety standards:  Short-term rental properties in Portugal must comply with basic safety standards, including fire safety regulations and having a habitation certificate (“Cédula de Habitabilidade”).  More information on these safety standards can be found on the website of the Portuguese Agency for Mobility and Transport Services (IMT): Instituto da Mobilidade e dos Transportes, I.P.

France

Key regulations:

Registration requirements: All short-term rentals in France require registration with the local town hall (Mairie).  Property managers must obtain a unique registration number (“déclaration en meublé de tourisme” or DMT) which needs to be displayed in all rental listings and advertisements. Link to information on the DMT registration process can be found on the website of the French Ministry of Economy and Finance: Ministère de l’Économie et des Finances.

Licensing procedures:  Additional licensing requirements might be in place in some French cities, particularly in popular tourist destinations like Paris.  Paris, for instance, requires specific classifications for short-term rentals depending on the type of property and location.  Property managers should check with their local Mairie to determine if any additional licenses are needed beyond the DMT registration.

Zoning restrictions:  Zoning regulations can also affect short-term rentals in France.  Some cities might have limitations on short-term rentals in certain areas, or restrictions based on the type of property or the length of rentals.  Consulting local zoning maps or contacting the local Mairie is recommended to understand any zoning restrictions that might apply to your property.

Tourist taxes (Taxe de séjour):  France has a tourist tax system called “Taxe de séjour” levied on short-term rentals.  The specific tax rate can vary depending on the municipality, star rating (if applicable), and time of year.  Property managers are generally responsible for collecting the Taxe de séjour from guests and remitting it to the local authorities. Information on the applicable Taxe de séjour rate for your location can be found on the website of the relevant municipality.

Safety standards:  Short-term rental properties in France must comply with basic safety standards, including fire safety regulations and having a valid smoke detector.  More information on these safety standards can be found on the website of the Ministry of the Interior of France: Ministère de l’Intérieur.

 Italy

Key regulations:

Registration requirements:  Short-term rental regulations in Italy can vary slightly between regions and municipalities.  However, registration with the local tax authority (Agenzia delle Entrate) is generally mandatory for all short-term rentals.  This registration process involves obtaining a unique identification code (codice fiscale) for the rental property.  Link to information on registering short-term rentals can be found on the website of the Agenzia delle Entrate: Agenzia delle Entrate.

Licensing procedures:  While registration is the primary requirement, some Italian cities might have additional licensing requirements for short-term rentals.  This is more common in popular tourist destinations like Venice or Rome.  Property managers should check with their local municipality to determine if any additional licenses are needed beyond registration.

Zoning restrictions:  Zoning regulations can also play a role in short-term rentals in Italy.  Some cities or historical centers might have limitations on short-term rentals or restrictions based on the type of property.  Consulting local zoning maps or contacting the relevant local authority (comune) is recommended to understand any zoning restrictions that might apply to your property.

Tourist taxes (Tassa di soggiorno):  Many Italian cities have implemented a tourist tax (“tassa di soggiorno”) on short-term rentals.  The specific tax rate can vary depending on the municipality, type of accommodation, and time of year.  Property managers are generally responsible for collecting the tassa di soggiorno from guests and remitting it to the local authorities. Information on the applicable tassa di soggiorno rate for your location can be found on the website of the relevant municipality.

Safety standards:  Short-term rental properties in Italy must comply with basic safety standards, including fire safety regulations and having a valid energy performance certificate (APE).  More information on these safety standards can be found on the website of the Italian National Fire Department (Vigili del Fuoco): Corpo Nazionale dei Vigili del Fuoco.

Germany

Vacation rental regulations in Germany:

Registration requirements:  National registration for short-term rentals is not mandatory in Germany.  However, registration requirements can vary significantly at the state (Bundesland) and city level.  Property managers must check with their local authorities to determine if registration is required and, if so, the specific process involved.  Some cities, like Berlin, require obtaining a registration number that needs to be displayed in all listings.

Licensing procedures:  Similar to registration, licensing requirements for short-term rentals are not standardized across Germany.  While some cities might not require any licenses, others might have specific licensing procedures in place.  Property managers should consult their local authorities to determine if any licenses are needed beyond registration.

Zoning restrictions:  Zoning regulations play a crucial role in short-term rentals in Germany.  Many cities have designated areas where short-term rentals are prohibited or heavily restricted.  Additionally, some areas might have limitations on the duration of short-term rentals.  Consulting local zoning maps or contacting the zuständige Behörde (competent authority) in your city is essential to understand any zoning restrictions that might apply to your property.

Tourist taxes (City Tax/Overnight Stay Tax):  There is no national tourist tax on short-term rentals in Germany.  However, many cities have implemented their own tourist taxes, often referred to as “City Tax” or “Overnight Stay Tax” (Beherbergungssteuer).  The specific tax rate and collection procedures can vary depending on the city.  Property managers are generally responsible for collecting the tourist tax from guests and remitting it to the local authorities. Information on the applicable tourist tax rate for your location can be found on the website of the relevant city administration.

Safety standards:  Short-term rental properties in Germany must comply with basic safety standards, including fire safety regulations.  More information on these safety standards can be found on the website of the Federal Ministry of the Interior, Building and Community (Bundesministerium des Innern, für Bau und Heimat).

United Kingdom

Key regulations:

Registration requirements:  There is currently no national registration requirement for short-term rentals in the UK.  However, some local authorities in Scotland have implemented mandatory licensing schemes for short-term rentals.  Property managers operating in Scotland should check with their local council to determine if registration or licensing is required.

Licensing procedures:  As mentioned above, licensing requirements for short-term rentals are not widespread across the UK.  However, some Scottish cities like Edinburgh and Glasgow have implemented mandatory licensing schemes.  These licenses might have specific conditions attached, such as limitations on rental days per year.  Property managers in Scotland should consult their local council for details on any licensing procedures.

Zoning restrictions:  Zoning regulations can affect short-term rentals in the UK.  While there are no national restrictions, some local authorities might have limitations on short-term rentals in specific areas or property types (e.g., limitations on renting out individual rooms in apartment buildings).  Consulting local zoning maps or contacting your local council is recommended to understand any zoning restrictions that might apply to your property.

Tourist taxes: There is currently no national tourist tax on short-term rentals in the UK.  However, some local authorities might explore implementing such taxes in the future.  Property managers are advised to stay informed about any potential local initiatives regarding tourist taxes.

Safety standards:  Short-term rental properties in the UK must comply with basic safety standards, including fire safety regulations and gas safety checks.  More information on these safety standards can be found on the website of the Government of the United Kingdom.

North America 

United States

Key vacation rental regulations in the United States:

Unlike many European countries, the United States lacks a national framework for short-term rental regulations.  Instead, regulations are primarily determined at the state and local (city/county) level.  This can create a complex patchwork of rules for property managers to navigate. Here’s a breakdown of the key areas to consider:

Registration requirements:  Many cities and counties in the US require registration of short-term rental properties.  This process typically involves obtaining a business license or specific short-term rental permit.  Registration fees can vary depending on location.  Always check with your local city or county government to determine if registration is required and how to obtain the necessary permits.

Licensing procedures:  In addition to registration, some cities might have additional licensing requirements for short-term rentals.  These licenses might have specific conditions attached, such as limitations on rental days per year or occupancy restrictions.  Consult your local government websites or contact the relevant department to determine if any additional licensing is needed beyond registration.

Zoning restrictions:  Zoning regulations play a significant role in short-term rentals in the US.  Many cities have zoning codes that restrict or even prohibit short-term rentals in certain areas.  These restrictions can be based on factors like property type, neighborhood zoning, or proximity to residential areas.  Understanding your local zoning code is crucial.  Consult zoning maps or contact your local zoning department for clarification on any restrictions that might apply to your property.

Transient Occupancy Taxes (TOT):  Many popular tourist destinations in the US levy transient occupancy taxes (TOT) on short-term rentals.  These taxes are similar to hotel occupancy taxes and are typically a percentage of the rental rate.  Property managers are generally responsible for collecting TOT from guests and remitting it to the local authorities.  The specific tax rate and collection procedures can vary depending on the location. You can find information on TOT rates on the website of your local tax authority.

Safety standards:  Short-term rental properties in the US must comply with basic safety standards, including fire safety regulations and having working smoke detectors and carbon monoxide detectors.  Specific requirements might vary by locality.  Consult your local government websites or contact the relevant department for information on safety standards applicable to short-term rentals.

How have regulations affected New York City after 4 months? 

Case Study: New York City and Short-Term Rental RegulationsIntroduction

Short-term rentals (STRs) like Airbnb have become a popular accommodation option for travelers, but their presence in major cities can be a source of tension. Concerns about housing affordability and disruption to neighborhoods often clash with the economic benefits short-term rentals bring to tourism and local businesses. In response to these concerns, New York City implemented new regulations for short-term rentals in July 2023. This case study examines the initial impact of these regulations after four months.

Early Findings

• Registration: Over 80,000 short-term rental listings have been registered with the city, indicating a significant number of property owners are complying with the new requirements. (Source: Airbnb article)
• Enforcement: The effectiveness of enforcement actions against unregistered listings remains unclear. While the city has mentioned enforcement efforts, details on the scale and impact are limited.
• Listing numbers: News reports suggest a decrease in the total number of short-term rental listings in NYC (Source: The New York Times, October 28, 2023). However, it’s important to consult a wider range of sources to understand the extent and causes of this potential decline.
• Housing availability: The long-term impact of the regulations on housing availability, a key concern for the city, is yet to be determined.

Additional considerations

To gain a more comprehensive picture of the regulations’ impact, further research from objective sources is needed. This could include:

• Impact on different housing markets: How are the regulations affecting various housing segments within NYC (e.g., luxury rentals vs. affordable housing)?
• Enforcement challenges: What are the potential hurdles in enforcing the regulations, and how might these be addressed?
• Long-term consequences: What are the potential long-term effects on the short-term rental industry and the overall housing market in NYC?

Conclusion

The initial months of NYC’s short-term rental regulations show increased registration and a possible decrease in listings. However, a longer timeframe is needed to assess the regulations’ full impact on housing availability and the broader market. This case study highlights the ongoing debate and evolving regulations surrounding short-term rentals globally.

Canada

Key Regulations:

Short-term rental regulations in Canada vary significantly between provinces and municipalities. There’s no single national framework, so property managers need to be familiar with the specific rules in their location. Here’s a breakdown of the key areas to consider:

Registration requirements:  Many provinces and municipalities in Canada require registration of short-term rental properties.  The process and specific requirements can vary.  Some areas might require a business license, while others might have a dedicated short-term rental registration system.  Always check with your provincial and local government websites to determine if registration is required and how to obtain the necessary permits.

Licensing procedures:  Additional licensing requirements on top of registration might exist in some Canadian cities.  These licenses could have specific conditions, such as limitations on rental days per year or occupancy restrictions.  Consult the websites of your provincial and local governments or contact the relevant department to determine if any additional licensing is needed beyond registration.

Zoning restrictions:  Zoning regulations can significantly impact short-term rentals in Canada.  Municipalities often have zoning codes that restrict or even prohibit short-term rentals in certain areas.  These restrictions can be based on factors like property type, neighborhood zoning, or proximity to residential areas.  Understanding your local zoning code is crucial.  Consult zoning maps or contact your local zoning department for clarification on any restrictions that might apply to your property.

Municipal Accommodation Taxes (MAT):  An increasing number of Canadian municipalities are implementing Municipal Accommodation Taxes (MAT) on short-term rentals.  These taxes are similar to hotel occupancy taxes and are typically a percentage of the rental rate.  Property managers are generally responsible for collecting MAT from guests and remitting it to the local authorities.  The specific tax rate and collection procedures can vary depending on the location. You can find information on MAT rates on the website of your local municipality.

Safety standards:  Short-term rental properties in Canada must comply with basic safety standards, including fire safety regulations and having working smoke detectors and carbon monoxide detectors.  Specific requirements might vary by province and municipality.  Consult the websites of your provincial and local governments or contact the relevant department for information on safety standards applicable to short-term rentals.

Oceania

Regulations in Oceania can vary significantly between countries. Here’s a brief breakdown:

Australia  

Australia doesn’t have a national short-term rental regulatory framework.  Individual states and territories establish their own regulations. Major cities like Sydney and Melbourne have implemented regulations regarding registration, licensing, and sometimes, limitations on short-term rentals in certain areas.  It’s crucial to check with the local government website of your specific city or region for the latest updates.

New Zealand

New Zealand has a national framework for short-term rentals, requiring property managers to register their properties with a national database.  Regulations regarding licensing, zoning, and potential tourist taxes can vary depending on the specific location.  The official website of the New Zealand Ministry of Business, Innovation and Employment offers a good starting point for your research.

6. Where is tourist tax applied around the world? 

Understanding the specific regulations in your target market is crucial for operating a successful short-term rental business. This section acts as your roadmap, guiding you through the key tourist destinations across Europe and North America, highlighting essential information for property managers.

Europe 

The European Union (EU) recently introduced regulations aimed at increasing transparency and data sharing in the short-term rental sector. These regulations require online platforms to register with a single digital entry point in each member state and share data on hosts, bookings, and other rental activity.  This data will be used to improve tourism statistics and assist local authorities in enforcing existing regulations.

While the EU regulations focus on data sharing, individual countries within the EU still have the authority to establish their own short-term rental regulations.  Let’s delve into some popular tourist destinations in Europe:

France

The “Taxe de séjour” (tourist tax) applies to short-term rental stays in most French cities. The exact rate can vary depending on the location, type of accommodation, and duration of stay. Property managers are typically responsible for collecting and forwarding the tax to local authorities. 

Property managers and owners in France’s short-term rental industry should be aware of the “Taxe de séjour” (tourist tax). Here’s a breakdown of key information:

What is the taxe de séjour?

The Taxe de séjour is a local tax levied on tourists staying in commercial accommodations like hotels, vacation rentals, and guesthouses. Revenue is used to fund tourism promotion and local infrastructure projects.

Where is it applied?

The Taxe de séjour is not implemented nationwide in France.  Most cities and some towns have adopted it, particularly in tourist destinations.

How much is the tourist tax in France?

The amount of Taxe de séjour varies considerably depending on several factors:

• Location: Rates can differ significantly between cities and towns. Popular tourist destinations typically have higher rates.
• Accommodation rating: Higher-rated accommodations (more stars) usually have a higher tax rate.
• Season: Some localities might have different rates for peak and off-peak seasons.

Here’s a general range to provide an idea:

Rate: €0.20 to €4.20 per person, per night.

Who is responsible for paying the tourist tax?

The guest is typically responsible for the Taxe de séjour. However, some property managers might choose to include it in the rental price for simplicity.

How is it collected?

The collection process can vary depending on the locality. Here are two common methods:

• Property Manager: The property manager might be required to collect the tax from guests and then remit it to the local authority.
• Online Rental Platform: The online platform where you list your property might be involved in the collection process, depending on their agreements with local authorities.

Spain

Spain has a decentralized tourist tax system, with individual regions and municipalities setting their own rates and collection methods. This can create a patchwork system, so it’s crucial to check with local authorities for specific regulations in your area.  

Where is it applied?

The tourist tax is not implemented nationwide in Spain. It’s primarily levied in specific regions and cities with high tourist activity. Popular destinations like Catalonia and the Balearic Islands have established tourist taxes.

How much is the tax?

The amount of tourist tax varies depending on the location, type of accommodation, and season.  Here’s a general range:

Rate: €0.60 to €3.50 per person, per night (CheKin: https://www.checkinhotels.com/en/faqs.html)

Who is responsible for paying the tourist tax in Spain?

The tourist tax is typically the responsibility of the guest. However, some property managers might choose to include it in the rental price for simplicity.

How is it collected?

The collection process can vary depending on the local regulations. In some cases, property managers might be required to collect the tax from guests and then remit it to the local authorities. Online rental platforms might also be involved in the collection process.

Portugal

Portugal also levies a “Municipal Tourist Tax” on short-term rentals, with rates varying by location. 

Property managers and owners in Portugal’s short-term rental industry should be familiar with the Municipal Tourist Tax (Taxa Municipal Turística). Here’s a breakdown of key information:

Where is it applied?

The municipal tourist tax in Portugal is not nationwide. Popular tourist destinations like Lisbon, Porto, Faro, and some Algarve municipalities have adopted it.

How much is the tax?

The amount varies by city and can depend on the type of accommodation and season. Here’s a general range:

Rate: €0.50 to €2.00 per person, per night (maximum of 7 nights) (https://www.pearlsofportugal.com/)

Who is responsible for paying the tourist tax in Portugal?

The guest is typically responsible for the tourist tax. However, some property managers might choose to include it in the rental price for simplicity.

How is it collected?

The collection process can vary depending on the municipality.  Here are some possibilities:

• Property manager: The property manager might be required to collect the tax from guests and then remit it to the local authority.
• Online rental platform: The online platform where you list your property might be involved in the collection process, depending on their agreements with local authorities.
• Guest payment: In some cases, the guest might pay the tax directly to the local authority upon arrival.

Italy

Italy utilizes a similar system with the “tassa di soggiorno” (tourist tax). 

Where is it applied?

The tassa di soggiorno is not implemented nationwide in Italy. Thousands of municipalities across the country have adopted it, particularly in tourist destinations.

How much is the tourist tax in Italy?

The amount of tassa di soggiorno varies considerably depending on several factors:

• Location: Rates can differ significantly between cities, towns, and even specific areas within a city. Popular tourist destinations typically have higher rates.
• Accommodation type: Some municipalities might have different rates for hotels compared to short-term rentals.
• Season: Some localities might have different rates for peak and off-peak seasons.
• Star rating (if applicable): Similar to France, higher-rated short-term rentals (considered “case vacanze” or “case locazione turistica”) might have a higher tax rate compared to unclassified properties.

Here’s a general range to provide an idea:

Rate: €0.50 to €10.00 per person, per night (Experto Italy: https://asprinkleofitaly.com/tourist-tax-in-italy-2023/)

Who is responsible for paying the tax?

The guest is typically responsible for the tassa di soggiorno. However, some property managers might choose to include it in the rental price for simplicity.

How is it collected?

The collection process can vary depending on the municipality. Here are two common methods:

• Property manager: The property manager might be required to collect the tax from guests and then remit it to the local authority.
• Online rental platform: The online platform where you list your property might be involved in the collection process, depending on their agreements with local authorities.

Germany

Unlike some other European countries, Germany doesn’t have a national tourist tax. Instead, individual cities implement their own “City Tax” or “Overnight Stay Tax.”  Rates and regulations can vary significantly, so be sure to check with your local municipality for specifics.  

United Kingdom

Currently, there’s no national tourist tax in the UK. However, some cities have implemented their own local initiatives.  It’s always recommended to check with your local government website for any updates on short-term rental regulations in your area.

North America 

Similar to the EU, there’s no national tourist tax in the United States or Canada. However, several major cities and provinces have implemented their own short-term rental taxes:

United States:  

Cities like New York City, Miami, and New Orleans have established short-term rental taxes.  The specific rates and collection procedures can vary. Make sure to check the local regulations for the City and State that your property is located in.

Asia

Japan has a national consumption tax that applies to short-term rental stays. Some localities might have additional local taxes. Thailand introduced a tourist tax in 2020, with a flat fee per person per night depending on the type of accommodation. The island of Bali in Indonesia recently implemented a new tourist tax with different rates depending on the star rating of the accommodation.

Africa 

Not all countries have them: The good news is that some African countries don’t have any national tourist taxes.

Nationwide vs. Local: If tourist taxes do exist, they might be implemented nationwide or vary by cities, regions, or even specific parks. These local fees often target tourism-related activities and services.

Examples to consider:

South Africa: While South Africa doesn’t have a separate tourist tax, there’s a 14% Value Added Tax (VAT) that applies to most goods and services, including short-term rental stays. Be sure to factor this into your pricing strategy.

Tanzania: In 2023, Tanzania introduced an 18% VAT on previously exempt tourist services like park fees. This might indirectly affect your guests if they plan on visiting parks during their stay.

Staying informed

Research is key: Always research the specific regulations in your country and any local fees that might apply to your area. This information is often available on official government websites or tourism board websites.

Keep guests informed: Transparency is key! Consider mentioning any relevant tourist taxes in your listing descriptions or informing guests during the booking process. This avoids any surprises for them upon arrival.