Airbnb Laws in Tanzania

Airbnb Laws in Tanzania

Tanzania

Introduction
Introduction to Airbnb in Tanzania

Imagine turning your property into a gateway for adventurers exploring Zanzibar’s turquoise waters, the Serengeti’s wild savannas, or Kilimanjaro’s towering peaks. Tanzania’s short-term rental market is exploding, and in 2024, hosts are cashing in like never before. With platforms like Airbnb and Booking.com leading the charge, the government will most likely rake in millions in taxes as their reward.

Whether you’re listing a beachfront villa or a cozy bush retreat, now’s your chance to join the movement reshaping Tanzania’s tourism landscape. Ready to unlock your property’s potential and ride the wave of this lucrative trend regulations? Let’s dive in to access the regulations that govern short-term rental in the autonomous country of Tanzania located in the eastern part of Africa.

Overview

Imagine turning your property into a gateway for adventurers exploring Zanzibar’s turquoise waters, the Serengeti’s wild savannas, or Kilimanjaro’s towering peaks. Tanzania’s short-term rental market is exploding, and in 2024, hosts are cashing in like never before. With platforms like Airbnb and Booking.com leading the charge, the government will most likely rake in millions in taxes as their reward.

Whether you’re listing a beachfront villa or a cozy bush retreat, now’s your chance to join the movement reshaping Tanzania’s tourism landscape. Ready to unlock your property’s potential and ride the wave of this lucrative trend regulations? Let’s dive in to access the regulations that govern short-term rental in the autonomous country of Tanzania located in the eastern part of Africa.

Property
Overview
Property
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short term rentals
What is Airbnb in Tanzania?
What are short Term Rentals in the Country?

In Tanzania, short-term rentals (STRs) are commonly referred to as Vyakula vya muda mfupi in Swahili. Short-term rental typically refer to accommodations rented out for a short duration, usually less than 30 days. These include vacation homes, apartments, guesthouses, and even rooms within private residences, often listed on platforms like Airbnb, Booking.com, or through local agents. They cater primarily to tourists, business travelers, and short-term visitors.

Is Subletting Legal?
Is Subletting Legal in Tanzania?

In Tanzania, the legality of a tenant operating a short-term rental (STR) in their apartment depends on two major factors, including the terms of the lease agreement, and permissions from relevant authorities. Here’s a breakdown:

1. Landlord Permission:

  • Tenants must obtain explicit written consent from the landlord to sublet or operate a short-term rental. Most standard lease agreements prohibit subletting without prior approval, so violating this could lead to eviction or legal action.

2. Estate/Apartment Complex Rules:

  • If the property is part of a managed estate or apartment complex, the tenant must comply with the Estate's bylaws. Some may restrict or prohibit short-term rentals entirely.

Check to confirm if it is allowed in your estate before procedding with the rental.

National Association for STR Owners
What is the maximum length of stay in Tanzania?
What is the maximum length of stay?

As of now, Tanzania does not have a nationwide maximum length of stay for short-term rentals (STRs). The definition of STRs typically revolves around stays of less than 30 days, but this is not a strict legal requirement across the country.

Is there any National Registration Requirement or Permit?

The registration requirements for short term rentals in Tanzania vary by location:

  1. Mainland Tanzania: Short-term rentals are regulated by the Tanzania Tourist Board (TTB) and the Ministry of Natural Resources and Tourism (MNRT).Short-term rental hosts may need to register with the Tanzania Revenue Authority (TRA) for tax purposes and comply with local municipal regulations, but they are not neccessarily required to obtain a license. The board focus mainly on the licensing and regulation of tourist accommodations including lodges, hotels, and camps under the Tourism Act No. 29 of 2008 and related regulations.

  2. Zanzibar: The Zanzibar Commission for Tourism (ZCT) regulates STRs, and hosts must obtain a tourist accommodation license.

    Process for Obtaining a Permit for Short-Term Rentals:

    1. Required Documents:
    • Proof of property ownership or a letter of consent from the landlord.
    • A valid business license (if operating as a commercial entity).
    • Tax Identification Number (TIN) from the TRA.
    • Health and safety compliance certificates (e.g., fire safety, hygiene).
    • ZCT approval (for Zanzibar).
    2. Steps to Obtain a Permit:
    • Step 1: Visit the local municipal office or tourism board in Zanzibar.
    • Step 2: Submit the required documents and complete the application form.
    • Step 3: Pay the applicable fees (see below).
    • Step 4: Await inspection and approval from the relevant authority.
    3. Associated Fees:
    • Registration Fees: Vary by location but typically range from TZS 100,000 to TZS 500,000 (approx. $40–$200 USD).
    • Annual License Fees: In Zanzibar, tourist accommodation licenses can cost between TZS 500,000 and TZS 2,000,000 (approx. $200–$800 USD), depending on the property size and type.
    • Inspection Fees: Some regions charge for property inspections.

Is there a need for Permission from Landlord/Local Council/Neighbors?

The requirements vary depending on the property location and ownership. Here’s a breakdown:

1. Permission from Landlords:

  • If the host is a tenant, they must obtain written consent from the landlord to sublet the property for short-term rentals. Most lease agreements prohibit subletting without prior approval, and violating this can lead to eviction or legal action.

2. Permission from Local Councils:

  • Hosts must comply with local government regulations, which may include:
    • Registering the property with the municipal council.
    • Obtaining a business license or tourist accommodation permit.
    • Paying applicable fees and taxes (e.g., property tax, tourism levy).
  • The requirements outlined above applies mainly to Zanzibar, hosts must register with the Zanzibar Commission for Tourism (ZCT) and obtain a tourist accommodation license.

3. Permission from Neighbors:

  • While not always a legal requirement, obtaining neighbor approval is advisable to maintain good relations and avoid disputes.
Is Short-term rental Income taxable?

Yes, the following taxes applies to both third party platforms, hosts and guests;

  • 1. VAT on Service Fee (18%): This tax is paid indirectly by guests. Direct booking websites, third party apps like Airbnb or Booking.com are required to collect and send this VAT to the TRA on their service fees.
  • 2. Digital Service Tax (2%): This tax is paid by platforms offering digital services such as Airbnb or Booking.com that are not resident in the country on the income they earn from Tanzanian users, i.e hosts.

  • 3. Corporate Income Tax (30%)
    : This tax is paid by corporate hosts or corporate entities on profits earned from their short-term rental business, such as hotels, guest houses, etc.
  • 4. Business License Fees: This fee is paid by hosts to the municipal council or BRELA to operate legally. This fee varies depending on the size and structure of the business.
  • 5. Tourism Levy: – This tax is paid by hosts, often added to the guest’s bill, for accommodation stays under the tourism regulations. This tax is collected by the Tanzania Tourist Board (TTB) on the mainland, it is called a Tourism Development Levy (TDL) a 1% per bed-night imposed on all tourism-related services, including STRs. In Zanzibar the hotel levy is determined by the rate charged per night: e.g. for low nightly rates, a fixed USD amount; for higher rates, a percentage of gross sales. It is about $5 per night for 5 star hotels, about $4 per night for 2- or 3-star hotels, and $2 per night for 1-star hotels.
  • Is there any National Tourism Fund or Tourist Tax?

    There is no national tourism levy, instead the tourism taxes that applies varies on the mainland and Zanzibar. This charge is typically paid by hosts and included in the guest’s accommodation bill as part of the tourism regulations, as discussed above.

    On the mainland, the tourist tax is known as the Tourism Development Levy (TDL), and it is collected by the Tanzania Tourist Board (TTB). It is charged at 1% per bed-night on all tourism-related services, including short-term rentals.

    In Zanzibar, the equivalent tax is the Hotel Levy, which is administered and collected by the Zanzibar Revenue Authority (ZRA). The levy amount depends on the accommodation rate: lower nightly rates are subject to a fixed U.S. dollar charge, while higher rates are calculated as a percentage of gross sales. Generally, the levy is about $5 per night for 5-star hotels, $4 per night for 2–3-star hotels, and $2 per night for 1-star hotels.

    Is there any Guest Registration and Reporting Requirement?
  • All accommodation operators (hotels, guesthouses, holiday homes, etc.) are required to maintain a guest register. The Ministry of Natural Resources & Tourism (MNRT) requires all licensed tourist accommodations to digitally record guest details such as name, nationality, and length of stay, via its online portal to support national tourism data collection. Under the Hotel Levy Regulations (1972), operators must maintain a guest register with names, addresses, stays, and payments, submit daily and monthly occupancy returns (Forms H.L.1 and H.L.2), and file a notification of hotel particulars (Form H.L.3) within 21 days of opening.
  • Is there any National Health and Safety Requirements?

    Short-term rental (STR) properties in Tanzania must adhere to specific health and safety standards to ensure the well-being of guests and compliance with local regulations. While these standards may vary slightly by region, the following are the key nationwide requirements:

    1. Fire Safety:

    • Fire Extinguishers: Properties must have functional fire extinguishers installed in accessible locations.
    • Smoke Detectors: Smoke alarms are recommended, especially in multi-unit buildings.
    • Emergency Exits: Clear and marked emergency exits must be available, particularly for larger properties.

    2. Hygiene and Sanitation:

    • Clean Water Supply: Properties must provide access to clean, potable water.
    • Waste Disposal: Proper waste management systems, including garbage collection and disposal, must be in place.
    • Cleanliness: Regular cleaning and maintenance of the property are mandatory to ensure hygiene.

    3. Structural Safety:

    • Building Compliance: The property must meet local building codes and regulations, including structural integrity and electrical safety.
    • Ventilation: Adequate ventilation must be provided in all rooms, especially kitchens and bathrooms.

    4. Health Certifications:

    • Food Handling: If the property offers food services, hosts must obtain a food handling certificate from local health authorities.
    • Pest Control: Regular pest control measures must be implemented to prevent infestations.

    5. Security Measures:

    • Locks and Safes: Properties must have secure locks on doors and windows. Safes for guest valuables are recommended.
    • Lighting: Adequate outdoor and indoor lighting, especially in common areas, is required for safety.

    6. First Aid:

    • First Aid Kits: A well-stocked first aid kit must be available on the premises.

    Enforcement and Penalties:

    • Hosts who fail to meet these standards may face fines, license revocation, or closure of the property.
    • In Zanzibar, the Zanzibar Commission for Tourism (ZCT) conducts regular inspections to ensure compliance.

    Is there any Platform Accountability Requirement?

    In Tanzania, online platforms facilitating short-term rentals (STRs), such as Airbnb, Booking.com, and Vrbo, are generally not directly responsible for ensuring that individual listings comply with national laws and regulations. However, they are expected to operate within the legal framework and may have internal policies to promote compliance.

    Is there any Anti-Discrimination Law?

    Tanzania does not have any anti-discriminate law specific for the tourist accommodation industry but it upholds equality and accessibility through several laws. The Constitution (Article 12) prohibits discrimination; the Persons with Disabilities Act, 2010 promotes accessibility and equal treatment across public and private services; and the Fair Competition Act, 2003 forbids discriminatory business practices. In tourism, both the Tanzania Tourist Board (TTB) and the Zanzibar Commission for Tourism (ZCT) encourage inclusive and non-discriminatory accommodation practices, even though specific short-term rental rules are not yet defined.

    Is there any Data Sharing Requirements?

    Digital booking platforms are not currently required to share host or guest information with authorities in Tanzania.

    Is there any National Insurance Requirement?

    As of now, Tanzania does not have a nationwide mandate requiring hosts to have liability insurance for short-term rental (STR) properties. However, it is strongly recommended for hosts to obtain insurance to protect themselves against potential risks, such as property damage, theft, or guest injuries.

    Is there any National Zoning law/Cultural Heritage law?

    Tanzania has several regulations in place to protect culturally or historically significant areas from the potential negative impacts of short-term rentals (STRs). These regulations aim to preserve heritage sites while balancing tourism development. Here’s an overview:

    1. Antiquities Act, 1964:

    • This act protects heritage sites, monuments, and antiquities by regulating activities around them.
    • STRs near such sites may require special permits or face restrictions to prevent damage or over-commercialization.

    2. Town and Country Planning Act, 1956:

    • This act governs land use and development, including in areas of cultural or historical significance.
    • Local authorities can impose zoning restrictions to limit STRs in protected areas.

    3. National Conservation Areas:

    • Sites like Stone Town in Zanzibar (a UNESCO World Heritage Site) have specific regulations to preserve their cultural and historical integrity.
    • STRs in these areas may be subject to:
      • Strict licensing requirements.
      • Limits on property modifications.
      • Caps on the number of guests or rentals.

    4. Local Government Regulations:

    • Municipal councils in areas with cultural or historical significance (e.g., Bagamoyo, Kilwa) may enforce additional rules, such as:
      • Banning STRs in certain zones.
      • Requiring heritage impact assessments before approving STR operations.

    Is there any Environmental Regulations that affects STR?

    Tanzania has no nationwide sustainability rules specifically for short-term rentals, but hosts are encouraged to follow the country’s broader sustainable tourism policies. This includes proper waste management, energy and water conservation, and compliance with wildlife protection laws in areas near national parks. The Tanzania Tourist Board also promotes eco-friendly practices such as using local products, supporting communities, and educating guests on sustainability. While optional, eco-certifications like Green Key can help hosts show their commitment. In Zanzibar, local efforts include bans on single-use plastics, promotion of renewable energy, and stricter environmental construction standards.

    Is there any National Tenant Protection Law?

    In Tanzania, tenant rights are protected by the Land Act, 1999 and the Landlord and Tenant Act, 1962, which prevent unfair evictions—including those caused by converting homes into short-term rentals. Landlords must give valid written notice, usually at least 30 days, and secure a court order before eviction. Self-help evictions are illegal. Tenants with fixed-term leases cannot be forced out early unless they breach the agreement, and switching a property to an STR isn’t a valid reason to end a lease. Some local governments also restrict landlords from converting residential units into STRs to protect housing availability.

    Is there any Reporting Requirements for Foreigners?

    There is no current obligation for tourist accommodations in Tanzania to report foreign guests to immigration or security authorities.

    Is there any Digital Platform Regulation Compliance?

    In Tanzania, online platforms facilitating short-term rentals (STRs), such as Airbnb, Booking.com, and Vrbo, are not explicitly required by law to verify compliance with national regulations before listing properties. However, many platforms have internal policies to encourage or enforce compliance.

    Is there any Consumer Protection Law that affect STR?
    Is there any Law that applies to Non-resident Owners?
    Is there any classification of STR in the country?
    Are there Special National Event Regulations?
    Is there any Penalty for Violating National Rules?
    Are there National Rules or Regulations Governing Short-Term Rentals in Tanzania?
    Are there National Rules or Regulations Governing Short-Term Rentals in the Country?
    Is there any National Tax that affects short-term rental?
    permits, license
    Are there any Permits, Licenses, or Registrations for Airbnb in Tanzania?
    Are there any Permits, Licenses, or Registrations for Short-term Rentals in the Country?

    The registration requirements for short term rentals in Tanzania vary by location:

    1. Mainland Tanzania: Short-term rentals are regulated by the Tanzania Tourist Board (TTB) and the Ministry of Natural Resources and Tourism (MNRT).Short-term rental hosts may need to register with the Tanzania Revenue Authority (TRA) for tax purposes and comply with local municipal regulations, but they are not neccessarily required to obtain a license. The board focus mainly on the licensing and regulation of tourist accommodations including lodges, hotels, and camps under the Tourism Act No. 29 of 2008 and related regulations.

    2. Zanzibar: The Zanzibar Commission for Tourism (ZCT) regulates STRs, and hosts must obtain a tourist accommodation license.

      Process for Obtaining a Permit for Short-Term Rentals:

      1. Required Documents:
      • Proof of property ownership or a letter of consent from the landlord.
      • A valid business license (if operating as a commercial entity).
      • Tax Identification Number (TIN) from the TRA.
      • Health and safety compliance certificates (e.g., fire safety, hygiene).
      • ZCT approval (for Zanzibar).
      2. Steps to Obtain a Permit:
      • Step 1: Visit the local municipal office or tourism board in Zanzibar.
      • Step 2: Submit the required documents and complete the application form.
      • Step 3: Pay the applicable fees (see below).
      • Step 4: Await inspection and approval from the relevant authority.
      3. Associated Fees:
      • Registration Fees: Vary by location but typically range from TZS 100,000 to TZS 500,000 (approx. $40–$200 USD).
      • Annual License Fees: In Zanzibar, tourist accommodation licenses can cost between TZS 500,000 and TZS 2,000,000 (approx. $200–$800 USD), depending on the property size and type.
      • Inspection Fees: Some regions charge for property inspections.

    Is there any National Association for Airbnb owners in Tanzania?
    Is there any National Association for STR owners in the Country?
    National Association for STR Owners

    Disclaimer

    Lodge compliance is not a licensed tax or financial advisor. Therefore nothing in the above article should be construed as tax, legal, or financial advice. Contact your local tax office for information regarding your personal circumstance.

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