TL;DR
In Cape Town, a “transient guest” stay is ≤30 consecutive days, and a dwelling unit may host one family or up to five transient guests. Owner-occupied B&B is an additional use right in many SR1 suburbs; larger/non-owner operations fall under Guest House (usually Consent Use in SR1). Track rates (possible Commercial Accommodation reclassification), keep to basic fire safety, declare income, and register for VAT when your taxable turnover exceeds R1,000,000 in any 12 months.
Table of Contents
Is Airbnb legal in Cape Town?
Yes — short-term letting is lawful when your use complies with the City’s Municipal Planning By-law (MPBL) and Development Management Scheme (DMS). The City’s 2019 amendment added the “transient guest” definition: accommodation “for a continuous period not exceeding 30 consecutive days at a time.”
The MPBL’s dwelling unit definition explicitly allows “one family or a maximum of 5 transient guests” — a key threshold for whole-home/Airbnb scenarios. If you exceed that in a dwelling, or operate multiple rooms, you’re moving into B&B/Guest House territory with extra conditions/approvals.
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Zoning: SR1 vs GR/MU — B&B (additional) vs Guest House (consent)
Single Residential 1 (SR1). Table A shows Bed & Breakfast establishment as an additional use right (typically owner-occupied) and Guest House as a Consent Use. Practically: live on-site with a few rooms/meals → B&B; scale up or operate non-owner-occupied → Guest House (apply for Consent Use in SR1).
General Residential (GR2–GR6) / Mixed-Use (MU). These zones accommodate more intensive visitor accommodation under their primary/consent frameworks — always check your exact sub-zoning line in Table A before you invest.
Parking standards matter. Chapter 15’s table requires B&B: +1 on-site bay per guest room; Guest House/Boarding house: 1 bay per bedroom for the first 10 bedrooms; thereafter 0.5 per bedroom (City may require more if parking proves insufficient).
No separate “Airbnb permit.” Cape Town does not run a dedicated short-let registration scheme; approvals arise via DMS/MPBL land-use rights (additional/consent uses) and general compliance. Keep an eye on planning updates, but as at September 2025, there’s no separate City “Airbnb licence.”
Sectional-title & estate rules still apply
City zoning doesn’t override Body Corporate/HOA rules under the Sectional Titles Schemes Management Act (STSMA). If your scheme restricts short-lets, you must comply — get written approval where required and align with conduct rules (access, noise, parking).
Fire & building: practical basics for hosts
Cape Town enforces safety through its Community Fire Safety By-law and Fire & Rescue guidance. For typical dwellings, focus on clear escape routes, working smoke alarms, and appropriate extinguishers, plus visible emergency numbers (107 from landline; 021 480 7700 from cellphone). Larger establishments (guest houses) should expect more formal compliance and inspections.
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Property rates: when you become “Commercial Accommodation”
The Rates Policy 2025/26 defines Commercial Accommodation as property not used as a primary residence or where more than 40% of a primary residence is used or available for transient/short-term letting (includes guest houses, self-catering, B&B, short-let apartments). Crossing that line can reclassify you from Residential to a non-residential category — affecting your rates bill. Confirm your category before scaling up; note the policy also removes residential relief if >40% is used for non-residential purposes.
Taxes (SARS): income tax & VAT
- Income tax: Airbnb income is taxable rental income — track income/expenses for allowable deductions.
- VAT: Compulsory registration once taxable supplies exceed R1,000,000 in any consecutive 12-month period; voluntary registration is available below that threshold. Monitor turnover and register promptly if you cross the line.
Tourist levy in Cape Town (and TOMSA)
Cape Town’s 2025/26 Tariffs, Fees & Charges book does not list a municipal tourist/bed levy. Re-check annually at budget time, but at publication there’s no City bed tax.
Separately, Tourism Levy South Africa (TOMSA) is a voluntary 1% private-sector levy administered by TBCSA; some accommodation businesses opt in and add it to invoices.
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How to stay compliant (step-by-step)
- Confirm zoning & sub-zoning: Look up your property (SR1/GR/MU) and read Table A for B&B/Guest House rights.
- Choose the correct model:
• Entire home/flat with ≤5 transient guests, stays ≤30 days → operate within dwelling unit limits.
• Owner-occupied with meals → B&B (SR1 additional use right).
• Larger/non-owner-occupied → Guest House (apply for Consent Use in SR1 or ensure correct zoning in GR/MU). - Sectional title/estates: Obtain Body Corporate/HOA sign-off in line with STSMA rules.
- Parking & neighbours: Provide on-site parking per Chapter 15 (B&B +1 per room; Guest House 1/room for first 10) and align house rules (quiet hours, waste).
- Fire & building basics: Fit alarms, mark escape routes, keep an extinguisher where appropriate; post 107/021 480 7700; follow City fire guidance.
- Rates: Ask the City to confirm if you remain Residential or fall under Commercial Accommodation given the >40% rule.
- Taxes: Declare rental income to SARS; monitor the R1m/12-month VAT trigger and register if you exceed it.
Quick council check: Requirements vary by zone, building type, and scale. Confirm specifics with the City’s Planning portal and related by-laws before listing.
FAQs
1) Is there a 90-night cap in Cape Town?
No. Cape Town manages short-stays through zoning/use rules, not blanket night caps. The key is the “transient guest” definition (stays ≤30 consecutive days).
2) How many guests can I host in a normal dwelling unit?
A dwelling unit may house one family or a maximum of five transient guests. Over that, you’re moving into B&B/Guest House territory.
3) Do I need a permit to run short-term lets?
There’s no separate City “Airbnb permit”. Compliance runs via MPBL/DMS: B&B is an additional use right in SR1, while Guest House is a Consent Use (and GR/MU have their own rules).
4) What parking do I need?
B&B: +1 bay/guest room. Guest House: 1 bay/bedroom for the first 10; then 0.5/bedroom. The City can require more if practice shows shortfall.
5) Will my property rates change if I Airbnb full-time?
Possibly. If the property is not a primary residence or you use >40% for short-lets, you may be rated as Commercial Accommodation under the Rates Policy 2025/26.
6)Is there a tourist/bed tax in Cape Town?
No City bed levy appears in the 2025/26 Tariffs. TOMSA (1%) is voluntary and industry-administered by TBCSA.
Not Advice: This guide highlights key points for short-term letting and is not legal or tax advice. Rules change — always check the relevant authority’s website for your property and seek professional advice if unsure.