Rental Types

Compare Rental Types and Requirements

See what’s allowed, what permits you need, and how regulations differ across rental durations.

Short-term rental

Allowed with permit

Under 30 nights

Airbnb, VRBO, direct booking

Permit required

Type 1 or Type 2 STR Licence

Type 1 = owner-occupied · Type 2 = non-owner-occupied

90-night annual cap for non-primary residences in restricted zones

Licence number must appear on all listing platforms

Max occupancy: 2 guests per bedroom plus 2 additional

Need the full application walkthrough?

Get your STR licence

Mid-term rental

Generally allowed

30–365 nights

Furnished monthly stays

Permit required

No STR permit needed

Standard residential tenancy law applies · Written lease recommended

No annual night cap or density restrictions

No Hotel Occupancy Tax — meaningfully lower tax burden

Landlord-tenant rights apply — deposit, habitability, and notice obligations

Mid-term is lower friction. Get the basics right.

Get Property Report

Long-term rental

Fully allowed

12-month lease

Standard residential

Permit required

None — standard residential use

Residential Property Code governs · No STR obligations

No permits, night caps, or density restrictions

No Hotel Occupancy Tax obligations

Standard habitability, notice, and deposit rules apply

taxes

What Applies and Who Handles It

Understand which taxes apply, who collects them, and what you’re responsible for, especially when handling direct bookings.

STATE

Hotel Occupancy Tax

Collected by

Airbnb, VRBO

Who files

Platform on your behalf

Applies to

STR under 30 days only

County

County HOT

Collected by

Platform or operator

Direct bookings

You must register & file

Applies to

STR under 30 days only

CITY

City hOT

Collected by

Platform or operator

Filing frequency

Monthly

Applies to

STR under 30 days only

Combined total

All taxes, all levels

17%

OTA bookings

Platforms handle state portion

Direct bookings

You collect & file all three

Mid / Long-term

No HOT applies

Direct bookings mean three separate filings

Miss one and you're exposed. Lodge Compliance helps you automates all three

Automate Taxes Now

FAQs & Guides

Common Question From Operators

Clear answers to help you understand what’s required, and a straightforward way to get it done.

Let's Get You Compliant

How do I register my property as an STR in Texas?

Do I need a permit for mid-term rentals in Texas?

How do I handle taxes if I take direct bookings?

What happens if I don't comply?

Overview

Iceland, famous for its stunning landscapes and unique culture, has become a top destination, attracting tourists to sites like the Blue Lagoon and Northern Lights. With millions of annual visitors, short-term rentals have surged, offering authentic stays and contributing significantly to the economy—tourism now accounts for around 10% of Iceland's GDP, with STRs providing essential income, especially in rural areas. Platforms like Airbnb and Booking.com host thousands of listings. To balance tourism’s benefits with sustainable housing, Iceland has introduced regulations to manage STR demand, ensuring quality of life for residents while supporting the tourism industry.

Overview

In Iceland, short-term rental operators can find support through industry associations and tourism organizations that provide resources and advocacy for the STR community. Although there isn’t a dedicated national association specifically for short-term rental owners, the Icelandic Tourist Board and Icelandic Travel Industry Association (SAF) serve as key resources.

These organizations offer support in areas such as best practices for sustainable tourism, compliance updates, and marketing strategies. They also provide a network for property owners to connect with industry professionals. Non-resident owners interested in joining these associations may have membership requirements, including fees, and access to Icelandic regulatory guidance for skammtímaleiga operations.

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