Executive Summary:
Spain's proposing a 21% VAT on short-term rentals, more than double hotel’s 10% rate. Dana Point, California, is fast-tracking permits for compliant operators while using Deckard Technologies to hunt down unpermitted rentals—get licensed or risk hefty fines. Whistler, British Columbia, now treats even casual home-swapping as commercial short-term rentals requiring tourist accommodation zoning, potentially blocking residential property conversions. Vail, Colorado, may add new excise taxes by November 2025 if residents approve the ballot measure, while Rhode Island investors should brace for stricter compliance costs as new legislation emerges this fall. On the positive side, British Columbia's Real Estate Association is pushing for expanded exemptions that could unlock new opportunities near healthcare centers and for fractional ownership properties.
New Regulations:
Dana Point, California
Date of Announcement: May 27, 2025
Regulation Category: Licensing, Tax
Summary: Dana Point has simplified the short-term rental permitting process by allowing city staff to issue permits without council approval for certain low-risk rentals, potentially speeding up operations for compliant investors. However, a crackdown on unpermitted rentals using Deckard Technologies to enforce Transient Occupancy Tax compliance increases risks for non-compliant operators.
Source: Dana Point Streamlines Short-Term Rental Approvals, Cracks Down on Unpermitted Ones
Whistler, British Columbia
Date of Announcement: Ongoing
Regulation Category: Zoning
Summary: Whistler is enforcing zoning laws that classify even non-commercial home-swapping under 30 days as short-term rentals, requiring properties to have tourist accommodation status. This could limit flexibility for investors and homeowners, increasing compliance costs or restricting short-term rental opportunities in residential zones.
Source: Whistler doubles down on zoning enforcement as home-swapping flagged under short-term rental
Buncombe County, North Carolina
Article Published: June 2, 2025
Regulation Category: Licensing
Summary: Buncombe County paused short-term rental restrictions post-Hurricane Helene, offering temporary relief for owners, but a 28% drop in rental demand signals reduced profitability. Investors should note the temporary regulatory leniency but prepare for potential market challenges as recovery efforts focus on hotels.
Source: Good news and bad news for Buncombe short-term rental owners post-Helene
Developing Regulations:
Spain
Article Published: June 2, 2025
Regulation Category: Tax
Summary: The Spanish government is proposing a 21% VAT on short-term rentals (less than 30 days), more than double the 10% rate for hotels, to address the housing shortage by discouraging vacation rentals and encouraging long-term leases. This could significantly increase costs for short-term rental investors, potentially reducing profitability in tourist-heavy regions like the Balearic and Canary Islands.
Source: Spain proposes new tax hikes on REITs, vacant homes, foreign owners and rentals
British Columbia, Canada
Date of Announcement: May 27, 2025
Regulation Category: Zoning, Licensing, Tax
Summary: The BC Real Estate Association is advocating for exemptions to short-term rental regulations, including restoring local zoning autonomy, expanding exemptions for strata hotels and fractional ownership, and geographic exemptions near healthcare centers and for the TV/film sector. These proposed changes could benefit investors by increasing flexibility and economic opportunities while balancing housing needs.
Source: BC Real Estate Association Calls for New Short-Term Rental Exemptions Amidst Tariff Challenges and Expected High Tourism Demand
Vail, Colorado
Date of Announcement: May 27, 2025
Regulation Category: Tax
Summary: Vail is surveying residents to assess support for a new excise tax on short-term rentals to fund local housing initiatives, with results potentially leading to a November 2025 ballot measure. Short-term rental investors may face increased operating costs if the tax is implemented, affecting profitability.
Source: Vail to gauge community appetite for short-term rental tax
Rhode Island, USA
Date of Announcement: May 30, 2025
Regulation Category: Tax, Licensing, Safety Compliance
Summary: A Rhode Island House commission is addressing short-term rental challenges, focusing on tax remittance, safety code compliance, and state-municipal registration coordination, with legislation pending court rulings. Investors should anticipate stricter regulations that could increase compliance costs and affect operations.
Source: Hurdles exist in search for solutions to RI's short-term rental challenges: Guest View