REGULATORY GUIDE

Stay fully compliant with Cape Town's short-term rental regulations. Everything you need to know about permits, taxes, and legal requirements.
Last updated:
September 3, 2025
South Africa
Western Cape
Cape Town
REGULATORY GUIDE

Stay fully compliant with Cape Town's short-term rental regulations. Everything you need to know about permits, taxes, and legal requirements.
Last updated:
September 3, 2025
South Africa
Western Cape
Cape Town

TL;DR

Rules

How to comply

Rules, Taxes & Penalties

Upcoming Changes

FAQs

SARS: Tax on rental income

Defined in municipal planning schemes (often as ‘transient/visitor accommodation’). Thresholds vary; some councils use ~30 days as a guide. Check local scheme.

Short-term lets are legal in Cape Town, but they’re governed by the City’s Municipal Planning By-law and Development Management Scheme (DMS). Running a dwelling as visitor accommodation (guest house/B&B/“accommodation facility”) often needs Consent Use depending on your zoning, scale and impacts. There’s no citywide night cap or separate STR register. Declare income to SARS; VAT registration is compulsory once taxable turnover exceeds R1,000,000 in any rolling 12 months. Comply with the City’s Community Fire Safety By-law (equipment, evacuation information, maintenance) and any planning/building conditions.

Legality
Short lets are allowed, but treated as accommodation use under the Municipal Planning By-law/DMS. A Consent Use may be required case-by-case, especially in single-residential zones.
Night Cap
None locally; South Africa has no national night-cap rule.
STR Register
No STR register. Check your zoning; apply for Consent Use where the DMS requires it. Meet any building/fire-safety conditions attached to approvals.
Risk
Operating without required Consent Use or with non-compliant fire safety risks prohibition/closure notices, fines and possible business-rates reclassification.

Key Rules at a Glance

Overview of requirements, authorities, and costs for short-term rental compliance
Requirement
What you need
Authority / Link
Cost / Time

Registration / Permit

No STR register. Check your zoning; apply for Consent Use where the DMS requires it. Meet any building/fire-safety conditions attached to approvals.

Max Nights

None locally; South Africa has no national night-cap rule.

Planning / Zoning

Timeframes vary with advertising/objections and referrals—expect several weeks to a few months from a complete submission.

Fee
R
Typically several weeks to months, depending on completeness, advertising and any appeals.

Safety & Insurance

Comply with the Community Fire Safety By-law: provide suitable fire-fighting equipment, evacuation signage/information, and maintenance/servicing records; operate in line with National Building Regulations and any approval conditions.

Tax

SARS income tax on profits; VAT 15% if supplies > R1,000,000/12 months. Municipal property rates/tariffs (e.g., City of Cape Town) may treat STRs as commercial.

Step-by-Step: How to comply

Overview of requirements, authorities, and costs for short-term rental compliance
1

Using a dwelling for visitor accommodation is commonly a Consent Use in residential zones under the DMS. In single-residential areas, guest house/accommodation facility rights are typically by consent and can require the owner to be resident—confirm for your zone. Timeframes vary with advertising/objections and referrals—expect several weeks to a few months from a complete submission.

2

Apply if required. Planning application (fee ~R). (Use the City’s current land-use tariff schedule for Consent Use—fees are updated periodically.)

3

SARS income tax on profits; VAT 15% if supplies > R1,000,000/12 months. Municipal property rates/tariffs (e.g., City of Cape Town) may treat STRs as commercial.

4

Comply with the Community Fire Safety By-law: provide suitable fire-fighting equipment, evacuation signage/information, and maintenance/servicing records; operate in line with National Building Regulations and any approval conditions.

Your Short-Term Rental Compliance Guide

Overview of requirements, authorities, and costs for short-term rental compliance

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  • Income tax: Declare profits to SARS; keep records and apportion mixed personal/business costs.
  • VAT: Threshold R1,000,000; if registered, charge 15% VAT on accommodation.
  • Municipal: City of Cape Town and other municipalities set rates/tariffs; STR use can affect zoning and rates category (tax impact via higher property-rate factor or services tariffs).
  • Tourism levies: No compulsory provincial “tourist tax”; voluntary industry levies may exist but are not mandatory.
SARS: Tax on rental income

Edge Cases & Exemptions

  • Heritage/overlay controls (e.g., Heritage Protection Overlay Zone, scenic drives, coastal overlays) can add reports or conditions.
  • Management plans (parking, noise, waste/complaints) are common conditions for accommodation uses.
  • Rates reclassification: guest accommodation can be rated as Business/Commercial in terms of the City’s policy and may be back-dated after inspection.
  • Penalties & Enforcement

  • Planning: operating without required Consent Use or breaching conditions can trigger compliance or cease-use notices and prosecution.
  • Safety: Fire & Rescue may issue prohibition/compliance notices for contraventions; failure to comply can result in fines and court action.
  • Planning and fire-safety by-law breaches can lead to compliance/prohibition notices, prosecution and fines (amounts set under municipal by-laws and court schedules).

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    SARS: Tax on rental income

    Defined in municipal planning schemes (often as ‘transient/visitor accommodation’). Thresholds vary; some councils use ~30 days as a guide. Check local scheme.

    Do I need planning permission in Cape Town?
    Is there a night cap or 90-day limit in Cape Town?
    Do I need to register or get a permit?
    What taxes do I need to pay for short-term lets?
    What safety requirements do short-term lets need to meet in Cape Town?

    Tools & Resources

    Planning Guidance
    City of Cape Town — Development Management; City of Cape Town Fire & Rescue Services
    Fire Safety Guidance
    City of Cape Town — Community Fire Safety By-law
    Tourist/Local Tax Guidance
    SARS: Tax on rental income
    National Safety Guidance
    Fire Protection Association of Southern Africa
    National Tax Guidance
    SARS: Tax on rental income
    Regional Safety Guidance

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    This guide is informational and not legal advice. Always confirm with

    City of Cape Town — Development Management; City of Cape Town Fire & Rescue Services

    your local authority.