News
New Rental Rules
The Gibraltar Parliament has passed amendments to the Register of Property Occupation Act, introducing significant changes for short-term rental properties. Designed to address calls from the hotel sector for fair competition, the legislation introduces mandatory registration for properties and aims to ensure safety, quality, and tax compliance. Here’s what you need to know:
What’s changing?
Property owners offering short-term rentals, including those on platforms like Airbnb, must now register their properties before advertising. Each property will receive a unique registration number, simplifying oversight and compliance tracking.
Key obligations for hosts
- Annual returns: Hosts must submit detailed returns on occupancy rates, guest numbers, length of stays, and revenue. This information will be shared with the Income Tax Office to ensure proper tax declaration.
- Sustainable Tourist Fee: Property owners must pay the fee, aligning them with obligations faced by traditional accommodation providers.
- Income declaration: The legislation makes it easier for the Commission of Income Tax to trace undeclared rental income, enforcing compliance.
Enforcement and penalties
Properties can be removed from the register if false information is provided or if they cease to operate as short-term rentals. While the legislation stops short of requiring permits, the registration system creates a framework for accountability.
What’s next?
The Government has committed to further legislation to address additional operational details. These changes will help establish a clear framework for short-term rentals, ensuring transparency and a level playing field.
Why this matters
For property owners, compliance is no longer optional. These amendments create stricter oversight while addressing fairness concerns from the hospitality sector. With further regulations on the horizon, understanding and adapting to these changes is essential.
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