REGULATORY GUIDE

Stay fully compliant with Western Cape'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
Western Cape
REGULATORY GUIDE

Stay fully compliant with Western Cape'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
Western Cape

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 across the Western Cape, but there is no province-wide register or night cap. Planning is municipal: each council’s scheme sets where “tourist/visitor accommodation” or “transient guests” are allowed and when consent is needed. The Western Cape Land Use Planning Act (LUPA) provides the provincial framework, while City of Cape Town and other municipalities apply their own by-laws and zoning rules. There is no provincial tourist tax; TOMSA is a voluntary 1% industry levy. Keep basic fire-safety measures in place and install working smoke alarms; the Western Cape Government runs a province-wide smoke-alarm programme. Declare income to SARS; VAT applies only if you are a registered vendor for “commercial accommodation.”

Legality
Allowed province-wide; regulated mainly by municipal planning schemes and by-laws under the provincial LUPA framework, plus national tax and general safety rules.
Night Cap
None at province level; any limits would be in municipal schemes or consent conditions.
STR Register
No provincial STR register. Most councils either permit small-scale visitor accommodation in certain zones or require a land-use consent. City of Cape Town recognises short-term letting to “transient guests” in some dwelling/flat scenarios; other municipalities (e.g., Stellenbosch, Drakenstein) use their own “tourist/visitor accommodation” rules and consent processes.
Risk
Letting without required municipal consent, breaching consent conditions, or ignoring tax and safety duties can trigger administrative penalties, prosecution and (in sectional schemes) body-corporate enforcement.

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 provincial STR register. Most councils either permit small-scale visitor accommodation in certain zones or require a land-use consent. City of Cape Town recognises short-term letting to “transient guests” in some dwelling/flat scenarios; other municipalities (e.g., Stellenbosch, Drakenstein) use their own “tourist/visitor accommodation” rules and consent processes.

Max Nights

None at province level; any limits would be in municipal schemes or consent conditions.

Planning / Zoning

If a land-use consent is required, typical municipal processing runs 6–12+ weeks for straightforward, non-notified applications; notified/complex cases can take longer.

Fee
R
No provincial processing. Municipal timelines vary by council, completeness of the application and whether public participation is required.

Safety & Insurance

Fit and maintain working smoke alarms and basic home fire-safety measures; follow Western Cape Government guidance and local fire service advice for rentals and guest stays.

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

Planning is municipal under LUPA/SPLUMA. Whether short-term letting is permitted, permitted with standards, or consent-only depends on the local scheme, the zone and overlays (heritage/character, coastal, etc.); City of Cape Town and other councils publish their own by-laws and guidance. If a land-use consent is required, typical municipal processing runs 6–12+ weeks for straightforward, non-notified applications; notified/complex cases can take longer.

2

Apply if required. Planning application (fee ~R). No single provincial fee. Each municipality sets its own application deposits, tariffs and any contravention penalties; refer to your council’s land-use planning fees schedule.

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

Fit and maintain working smoke alarms and basic home fire-safety measures; follow Western Cape Government guidance and local fire service advice for rentals and guest stays.

Your Short-Term Rental Compliance Guide

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

Enjoy hassle-free hosting with Houst

  • 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

City of Cape Town has specific provisions for “transient guests” and uses administrative penalties for unlawful use; other municipalities (e.g., Stellenbosch, Drakenstein) publish their own tourist-accommodation guidelines and contravention-penalty policies. Sectional title schemes may restrict short-term letting through approved conduct rules; check body-corporate rules before listing.

Penalties & Enforcement

Municipalities can issue compliance notices, levy administrative penalties or prosecute zoning breaches under their by-laws. LUPA provides for offences with fines or imprisonment, and councils can adopt contravention levies. In sectional schemes, trustees can enforce approved conduct rules, and disputes may go to CSOS or the courts.

No single maximum. Under LUPA, serious contraventions can carry a fine or imprisonment of up to 20 years; municipalities may also impose administrative penalties or contravention levies under their by-laws (e.g., City of Cape Town section 129 administrative penalties).

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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 Western Cape?
Is there a night cap or 90-day limit in Western Cape?
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 Western Cape?

Tools & Resources

Planning Guidance
Local Municipality (planning/compliance); Western Cape Department of Environmental Affairs and Development Planning (provincial framework/oversight); SARS (tax/VAT); CSOS and body corporates in sectional title schemes.
Fire Safety Guidance
Western Cape Government — Smoke alarm project and guidance
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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