Holiday letting in Cape Town: the 2026 rules
How the City’s new rates policy treats short-term lets, the draft registration by-law, and what it means for owners.
Reviewed 3 October 2026
Rates: the 50% test
The City of Cape Town’s Rates Policy for 2026/27, approved on 29 June 2026, treats a property as commercial accommodation when it is used or available for short-term letting for more than half of its total annual room nights. A property’s room nights are its bedrooms multiplied by 365, and the test counts the nights a home is made available, not the nights booked.
Commercial accommodation is rated as business and commercial property, at 2.41 times the residential rate. The City says the change in rating category will apply from 1 July 2027.
The City has said commercial rates do not apply to people letting part of their home part-time, or to long-term rentals. The policy’s definition also covers accommodation in a property that is not anyone’s primary residence, so owners of holiday homes should confirm their category with the City.
The draft registration by-law
The City has published a draft Short-Term Letting By-law. It would require every property used for short-term letting to be registered with the City, the registration number to appear on every listing, and platforms to remove listings without one. Owners, operators and platforms would also share availability and occupancy data.
Public comment opened on 5 August 2026 and closes on 5 October 2026. It is a draft, its wording can change, and it is not yet law.
Nationally
A Draft Code of Good Practice for Short-Term Rentals in the Tourism Sector was published for comment on 13 March 2026. It is guidance, not binding law.
Questions people ask
Will my Airbnb pay business rates in Cape Town?
It can, from 1 July 2027. Under the 2026/27 Rates Policy, a property available for short-term letting for more than half of its annual room nights is rated as business and commercial property, at 2.41 times the residential rate.
Do I have to register my holiday let in Cape Town?
Not yet. A draft by-law would require registration and a registration number on every listing, but it is still a draft.
Does letting a room in my home part-time count?
The City has said commercial rates do not apply to people letting part of their home part-time, or to long-term rentals.
Sources
Work it through
This guide explains the rules in general terms. It is not legal, tax or financial advice; speak to a conveyancer or tax practitioner about your own circumstances.
Speak with us