Nova Scotia

Guide to Nova Scotia Short-Term Rental Regulations

Over two million people visited Nova Scotia in 2023 to enjoy its outstanding coastal scenery, historic sites, and vibrant festivals. This number marks a growing trend in tourism to the region. As demand for short-term accommodation increases, so do the investment opportunities. However, it’s important to familiarize yourself with the province’s laws and guidelines before jumping in. Let’s explore some of the key short-term rental regulations in Nova Scotia and its most popular tourist destinations. Disclaimer: Our guide is intended for informational purposes only and doesn’t constitute legal advice. For guidance on specific cases, please consult a property lawyer.

Short-term rental regulations in Nova Scotia

Nova Scotia is introducing strict, new regulations. There may be further developments but here’s what the province has decided so far. As of September 2024, all short-term rental operators must register their business. That means anyone who provides roofed accommodation to the public for 28 days or fewer. The only exemption is those hosting traveling workers. Note that, unlike some Canadian provinces, Nova Scotia doesn’t make an exception for the host’s primary residence. You must register whether you’re an Airbnb host renting out your second property or accepting one-off bookings while you’re on vacation. The annual fee ranges from $50 to $2000 according to your property type and location. Expect to pay higher rates if you’re in a place with a demand for long-term housing. Everyone can apply via the website. Make sure you’ve got the following supporting documents to hand:

• The property address
• The number of bedrooms or housing units
• Your contact details
• Proof of compliance with local bylaws
• Permission from the property owner (if necessary)
• Evidence that it’s your primary residence (if necessary)
• The completed registration form

Your registration number is valid for one year, starting from September 30th. Processing takes two to three weeks so avoid leaving this to the last moment. Beware: Nova Scotia has some of the highest penalties in Canada. Make sure you’re officially on the tourist accommodations registry before you accept. If you’re found operating an unregistered business, you could face fines of up to $100,000.

Platform operator regulations

The new rules don’t just affect property operators. Nova Scotia requires you to register your business if you market or facilitate the use of short-term rentals. That includes property managers, leaseholders, and booking platforms like Airbnb and VRBO.

Tax requirements for Nova Scotia short-term rentals

Canadian businesses are required to pay 38% income tax. However, this is more likely to be between 15% and 28% after reductions. Like other Canadian provinces, Nova Scotia applies its own corporate tax. There are two rates. If you earn below the $500,000 threshold for the year, you only pay 2.5%. Above that, the tax rate shoots up to 14%. As a short-term rental operator, you can also expect to pay the following:

• Harmonized Sales Tax (HST): Nova Scotia applies a 15% rate to all companies that sell goods and services. This amount includes the national Goods and Sales Tax (GST).

• Registration tax: All vacation rental businesses must pay a fee as part of their annual registration.

• Marketing levies: Nova Scotia has given local governments the power to tax all types of tourist accommodation. The maximum amount is set at 3% of your bookings.

Short-term rental rules for popular Nova Scotian destinations

The Nova Scotian government lets cities enact their own rules and guidelines. With that in mind, let’s look at some of the short-term rental regulations for its major tourist destinations.

Halifax

Halifax appeals to a wide range of visitors with its vibrant culture, historic sites, and nature walks. It’s also only an hour’s drive from popular spots like Peggy’s Cove. The main thing to note is Halifax’s detailed municipal bylaws. Generally, you can use your primary residence as a business in any of the city’s zones. You must live on the premises. If you’ve split the property up, the other sections count as separate dwelling units. If you’re not the primary resident, you can operate your business from commercial zones and specific neighborhoods. You’re responsible for checking the land use by-laws before you register your business. Read the webpage for your neighborhood or use the ExploreHRM mapping tool. It’s also best to get a city planner to confirm you meet requirements. As well as registering with the province, Halifax requires you to get a permit. This costs $250 but never expires. You can submit your application via the municipal online system.

Cape Breton

Cape Breton has seen a surge in demand for accommodation. Best yet, the island welcomes short-term rentals in the hopes of growing its tourism industry. Cities and towns on Cape Breton generally follow the Nova Scotian laws. All you need to do is check you have planning permission in order to register your business. Note that if you’re leasing rooms within your property you need to apply for a Shared Dwelling License. The registration fees are $200 per unit. If you have over four rooms, you must pay an extra $50 for each one over the limit. This law applies to all property types, whether they’re short or long-term rentals.

Truro

Visitors often use Truro as a base from which to explore the Bay of Fundy. It’s slap bang in the middle of the ancient coastline with its high tides and numerous fossil sites. Truro defines a short-term rental as somewhere rented for 30 days or less at a time. However, this is to calculate its marketing levies. You still need to register your business in Nova Scotia if you’re frequently leasing for a month at a time. Unlike many other cities, Truro is not overly concerned about restricting short-term rentals. Recent research shows these businesses are unlikely to be contributing to the housing crisis there.

Annapolis Royal

Not far from Truro, you can find the small town of Annapolis Royal. It’s another hot spot for people visiting the Bay of Fundy. However, Annapolis Royal tightly regulates the use of short-term rental properties. You can only lease to guests for short periods if you’re living on site. You’re also prohibited from altering or expanding your property to turn it into tourist accommodation.

Wolfville

Another popular spot along the Bay of Fundy is the town of Wolfville. It’s surrounded by sea, mountains, and farmland. Again, Wolfville is only really suitable for long-term residents. You must register your property and prove it’s your primary residence. Nobody can have more than three rental units on their premises.

New Glasgow

Travelers to New Glasgow get to see a different side of Nova Scotia. The city is based in the heart of Pictou County on its beautiful coastline. New Glasgow has seen a gradual increase in short-term rentals. Most of them are people’s entire homes and apartments rather than private rooms. That’s because there’s more demand for woodland cabins than stylish hotels. Whichever type of accommodation you offer, New Glasgow requires you to register. You must get one certificate for each property you operate. You also have to keep detailed records of all your financial activities. If you’re using a property management system like Hostfully, this should store all your historical booking data. All you have to do is present the information to the authorities upon request.

Lunenburg

Lunenberg is a popular destination due to its colorful wooden houses, which give the town a unique appeal. It may be small and tucked away but it’s a famous World UNESCO heritage site. Given its status, Lunenberg is keen to protect its buildings from the impact of tourism. They have strict zoning laws about where you can operate businesses. In response to the new laws, Lunenberg has detailed how to get proof of compliance for registration. You must apply for two documents, a Development Permit and a Zoning Confirmation Permit. These request details of your property, including a floor plan and recent photographs of the rooms.

Resources

• New short-term rental regulations starting in September, Nova Scotia
• Register your tourist accommodation, Nova Scotia
• Corporation tax rates, Government of Canada
• Provincial corporate tax, Government of Canada
• HST, Nova Scotia
• Legislation Supports Increased Municipal Revenue, Nova Scotia News
• Short-Term Rentals, Halifax
• Tourism marketing levy by-law, Truro
• Short-term rental, Annapolis Royal
• Short-term rentals, Wolfville
• By-laws, Cape Breton Regional Municipality
• Tourism Marketing Levy By-Law, New Glasgow
• New Glasglow Housing Needs Assessment Report, New Glasgow
• New short-term rental provincial registration requirements, Town of Lunenburg