Short Term Vacation Rental (STVR) Govt Requirements

 In The Bahamas, an STVR (Short-Term Vacation Rental) is essentially a property that is being operated for guest stays on a short-term basis, 45 days or less which must be registered/licensed through the government’s STVR framework. NOTE: Rentals that exceed 45 days are considered long-term rentals which are exempt from VAT but still require a Business License to rent long-term as well.

The Department of Inland Revenue  ("DIR")  has an STVR registration program that is aimed at property owners operating their properties as short-term vacation rentals and bringing them into a system that ensures service standards and tax compliance. 

 If you are operating a property as a short-term vacation rental, you must register the property in the DIR portal. The Department of Inland Revenue frames this as “all property owners operating their properties as short-term vacation rentals. The Government generally looks for properties publicly listed on AirBnB, VRBO, Homeaway or similar portals.

The fast-track to operating an STVR is to join a Rental Pool Program.  Upon executing a formal Rental Pool Agreement or Contract with a registered Rental Pool Operating Company, your unit can be inducted quickly and in compliance with Bahamian law. The Rental Pool operator should provide you copies of their Business License, VAT Registration Certificate, Liability Insurance Certificate at a minimum. On a regular basis, at least quarterly, you must be provided with the rental income statement that shows the revenue generated and the VAT that has been collected & remitted to the DIR. If you want certainty that the rental pool operator is in good standing with the DIR, the Rental Pool Operator can/should be able to provide you with a recent Tax Compliance Certificate from the Ministry of Finance along with an Owner Statement that shows the VAT deducted and paid for your unit. You will need this as the DIR eventually requires this report to offset any Property Taxes due.

STVR use affects licensing and VAT administration for rental operations; it does not remove the underlying obligation to pay property tax on the land/building you own unless the rental pool operator that rents your property has obtained an exemption under a Hotel Encouragement Act Agreement that is still in effect, renewed and unexpired. The Rental Pool Operator should provide you with their executed Heads of Agreement or Hotel Encouragement Act Agreement and provide you with the exemption language and guidance on whether your property is fully exempt from real property tax or if the VAT remitted will set-off / offset your real property taxes.

If the Rental Pool Operator cannot provide you a Hotel Encouragement Act Agreement signed between the Commonwealth of the Bahamas and its company name or listed as the primary or related entity, then your property is not exempt. If you are provided this agreement, you must review it to confirm what the exemption provides. It is recommended that you obtain the Assessment from the DIR that indicates the exemption status on your annual RPT bill/invoice. This is the ultimate proof you need to ensure you are exempt.

• Department of Inland Revenue: https://inlandrevenue.finance.gov.bs/vacation-rental/

• Business Licence guide: https://inlandrevenue.finance.gov.bs/wp-content/uploads/2017/09/2017-01-01-The-Bahamas-General-Business-Licence-Guide.pdf

• Business Licence Non-Bahamians: https://biminihoa.com/faq/f/who-can-apply-for-a-business-license-in-the-bahamas?blogcategory=business+license

• RPT Declaration Submission Portal: https://mofportal.bahamas.gov.bs/DIR/webforms.nsf/familyislanddeclaration.xsp?fbclid=IwZXh0bgNhZW0CMTAAAR03G3pIgrlu5QA2Zqxqb_iG-lAxBj0BQKorFF-h8E8OYDPhFwBObGOH_GE_aem_ARKmEhT1iOhgRcB_oq8wmkA6_txvXDH48y1XANhFa8h_Tws_Im-foCYHL0XJABV4UzhBVFnpKEqdbDx0UQPnT7Qq

• STVR Application: https://www.harmari.com/client/reg-portal/register/bahamas

• STVR Insurance Guidelines: https://biminihoa.com/stvr-insurance

•  https://youtu.be/sWZQULAJTbI?si=L3r2wbtlGSdHr_cx