by Khareem Cabey 
The Inland Revenue Department (IRD) of St. Kitts and Nevis has issued an important reminder to property owners who rent accommodations through online platforms like Airbnb, Expedia, Booking.com, Vrbo, TripAdvisor, HomeToGo, Kayak, and others. If you earn income from short-term rentals through these platforms, it’s time to ensure your compliance with local tax regulations.
As part of the country’s efforts to maintain transparency and foster compliance, the IRD has highlighted the requirements under the Value Added Tax (VAT) Act, Cap 18.47 and the Island Enhancement Fund Act, Cap 20.51. Here’s everything you need to know to stay on the right side of the law and support St. Kitts and Nevis’ growth.
Who Needs to Report Rental Income?
If you are renting accommodations through online platforms—whether it’s a vacation villa, an apartment, or a private room—you are required to declare the income generated from these rentals. This includes any earnings made via:
- Airbnb
- Expedia
- Booking.com
- Vrbo
- TripAdvisor
- HomeToGo
- Kayak
The income must be reported to the IRD, and applicable taxes, including VAT, must be paid in accordance with the law.
Voluntary Registration Period
To assist property owners in becoming compliant, the IRD is offering a voluntary registration period until December 30, 2024. During this time, property owners can:
- Register their rental activities with the Inland Revenue Department.
- Settle back taxes for the past two years without incurring penalties.
This is an excellent opportunity to ensure your rental business is operating within legal requirements and avoid future complications.
Why Comply?
- Support Tourism Development: The taxes collected under these regulations contribute to the Island Enhancement Fund, which supports infrastructure and tourism development in St. Kitts and Nevis.
- Avoid Penalties: After the December 30, 2024 deadline, the IRD will enforce compliance measures, which may include penalties for non-compliance.
- Legal Protection: Staying compliant protects you from potential legal actions and ensures your rental operations are recognized as legitimate.
How to Register
The IRD has made the registration process straightforward. Property owners can:
- Contact the IRD team at 465-8485 (Extensions: 3402, 3404, 3407, 3408, 3410, 3421, or 3467).
- Email the department at inlandrevenue@ird.gov.kn for guidance.
The IRD team will assist you through every step of the registration process to ensure a smooth experience.
What Happens After December 30, 2024?
Once the voluntary registration period ends, the IRD will use all measures provided under the VAT Act and the Island Enhancement Fund Act to enforce compliance. Property owners who fail to declare their rental income may face penalties and other enforcement actions.
Why This Matters for Real Estate Owners in St. Kitts and Nevis
For property owners managing short-term rentals, this reminder is an opportunity to streamline your business operations and align with legal standards. Compliance not only enhances your credibility but also contributes to the ongoing development of St. Kitts and Nevis as a leading tourism destination.
If you own real estate in St. Kitts and are considering renting it out, this is also a timely reminder to factor tax obligations into your business planning. Platforms like Airbnb and Booking.com have made short-term rentals lucrative, but staying compliant is key to long-term success.
Need Help Navigating Compliance? Contact SKN Real Estate
At SKN Real Estate, we specialize in helping property owners maximize their investments while staying compliant with local regulations. If you need assistance understanding your tax obligations or managing your rental properties, contact us today.
- Email: info@sknrealestate.com
Let us guide you through the process, from managing your property listings to ensuring compliance with tax regulations.
Secure your peace of mind and contribute to the growth of St. Kitts and Nevis by meeting your tax obligations today.
