Global Regulatory Notes (6)

Keep a pulse on global regulatory trends. Featuring critical updates and recent news on short-term rental policies around the world, we highlight key developments shaping the industry. 🌐

Canada

British Columbia

British Columbia has officially launched a new provincial short-term rental registry, requiring all STR hosts to register by May 1, 2025, and post their registration numbers on listings. The move is part of the province’s broader strategy to tackle housing shortages through the Short-Term Rental Accommodations Act.

Starting June 1, non-compliant listings will be removed and future bookings canceled. The new rules also enforce a principal residence requirement in most communities over 10,000 people, limiting rentals to the host’s home and one secondary unit. Registration fees vary from $100 to $600 depending on the property type.

Penticton, BC

Penticton City Council has approved a zoning change to allow strata-hotel units at the in-progress Sokana development on Riverside Drive, aiming to offset the fallout from B.C.’s new short-term rental legislation.

The 3-1 vote followed a brief public hearing where concerns were raised about the shift toward hotel-like operations. While the developer emphasized that only some units would opt into short-term use and the move was essential to keep Phase 2 financially viable, one resident expressed frustration at the possibility of losing the building’s residential character.

Ontario

Tiny Township’s short-term rental licensing bylaw has cleared a major legal hurdle as Ontario’s Superior Court upheld the municipality’s authority to regulate STRs after a challenge from local operators.

In a detailed 22-page ruling, Justice Howard Leibovich dismissed the appeal from the Tiny Township Association of Responsible STR Owners stating the new rules were lawfully enacted with proper community input.

Barrie, Ontario

Barrie is rethinking its hands-off approach to short-term rentals as councilors weigh tools like zoning, licensing, and complaint-based enforcement to address the city’s rapidly growing STR market.

With listings climbing year over year—more than 500 as of late 2024—some council members argue it’s time for modest oversight to curb disruptive properties without undermining tourism or cutting off revenue from municipal accommodation taxes.

Tofino, Vancouver,

Tofino is now eyeing a reversal on its earlier decision to opt into B.C.’s strict short-term rental rules, citing pushback from locals and complications with implementation.

Though the coastal town initially embraced the provincial framework to address its housing shortage—limiting short-term rentals to principal residences and requiring registry—council is now hearing concerns from tenants pressured to act as hosts for absentee landlords.

Norway

Foreigners and Norwegians alike looking to rent out holiday homes in Norway should be aware of the tax rules tied to short-term rentals.

If you rent your property for under 30 days at a time and earn no more than NOK 10,000 annually, the income is tax-free. But anything above that threshold becomes 85% taxable at a flat rate of 22%. To qualify, the home must also be used by you personally and not serve as a full-time rental or permanent residence.

Properties that don’t meet these criteria are taxed from the first krone earned, though deductions may apply. Norway has agreements to prevent double taxation for foreign owners, but it’s advised to check with both local and Norwegian tax advisors.

Athens, Greece

Athens' historic Plaka district is at the heart of a legal battle over short-term rentals as Greece’s highest administrative court prepares to decide whether 16 Airbnb-style buildings operating like boutique hotels are violating strict zoning laws that protect the area from new tourist businesses.

The Hellenic Society for the Environment and Cultural Heritage (ELLET) is challenging the legality of these rentals, arguing they function as unauthorized hotels by offering amenities such as daily cleaning and centralized management, which undercuts Plaka’s residential zoning protections.

Wellington, New Zealand

Wellington is considering charging Airbnb hosts commercial rates. Similar efforts in cities like Queenstown and Christchurch have offered mixed results.

Queenstown requires resource consents and imposes commercial rates based on rental frequency, but officials say it’s hard to measure whether these policies have improved the housing supply. Christchurch also has rules in place, yet with limited enforcement and only dozens of operators complying, their real-world impact remains minimal. Despite Airbnb’s claims that hosting helps residents with cost-of-living pressures, some hosts are backing off due to new GST requirements and uncertainty around enforcement.

Perth, Australia

Western Australia’s housing advocates are pushing for faster and tougher action on short-term rental rules, saying current measures aren't easing the rental crisis.

Although over 10,800 STRA properties have been registered under the new law, Shelter WA warns that the current system favors short-term stays over long-term rental supply. Only 332 properties have transitioned to long-term rentals under the state’s $10,000 incentive scheme, and vacancy rates remain tight at 2%. With councils like Stirling and Joondalup supporting STRA for its economic benefits, Airbnb argues that most hosts are locals with one listing.

Bali, Indonesia

Bali has introduced a stricter tourism rulebook aimed at preserving its cultural integrity and enforcing sustainable visitor behavior with new guidelines that indirectly impact the short-term rental sector.

While the regulations don’t specifically target STRs, they require tourists to use officially licensed accommodations and guides signaling tighter oversight of where and how visitors stay on the island.

The updated “dos and don’ts” list, issued by Governor Wayan Koster, reinforces a push for high-quality, culturally respectful tourism, backed by Bali’s Civil Service Police and a dedicated enforcement team. Violators face legal consequences, including potential denial of access to attractions if the $15 tourist levy—mandatory since February 2024—is unpaid.

🌐 Emerging Global Trends

As the short-term rental (STR) sector continues to grow, cities everywhere are stepping up enforcement, revising policy measures, and confronting larger-scale impacts to ensure the well-being of residents and the integrity of neighborhoods.

What this means:

🚶 Provincial and Municipal Governments Tighten Control Through Registration, Zoning, and Licensing: Across Canada, particularly in British Columbia and Ontario, governments are increasingly turning to formal registration systems, zoning amendments, and licensing bylaws to regain regulatory control over short-term rentals. B.C.'s new provincial registry—complete with a principal residence requirement and steep penalties for noncompliance—signals a shift toward centralized oversight, while municipalities like Penticton and Tiny Township are either adjusting zoning laws or defending their right to regulate STRs in court. This trend reflects a growing alignment between provincial and local efforts to restrict STR growth in order to protect housing supply and residential character.

🚎 Pushback and Policy Reversals as Communities Weigh Economic and Social Impacts: While new rules aim to curb housing shortages and neighborhood disruption, not all communities are aligned. Tofino is already reconsidering its decision to adopt B.C.'s STR laws due to resident complaints and implementation issues. Meanwhile, places like Barrie, ON, are cautiously exploring regulation for the first time. Greece’s Plaka district is locked in a legal battle over whether some STRs are illegally mimicking hotels. These responses reveal a deeper tension between economic reliance on tourism and the desire to preserve local character and housing stability, often leading to pushback, policy reversals, or drawn-out court disputes.

🏠 Global Shift Toward Economic Accountability and Long-Term Housing Prioritization: Internationally, jurisdictions from Norway to Bali are embracing stricter tax enforcement, commercial rate charges, and housing-focused incentives to manage the broader impacts of short-term rentals. Norway’s tax structure now heavily targets higher-income hosts, while New Zealand and Australia explore commercial taxation and financial incentives to convert STRs to long-term use—with limited success so far. Bali’s tourism code, though indirect, pressures operators to comply with licensing and cultural standards. These changes highlight a global push to align STR operations with national housing, tax, and tourism goals, signaling more economic accountability for hosts worldwide.