As of now, the Faroe Islands do not have specific national legislation or regulations governing short-term rentals. This means that hosts are not required to register their properties with a central government database, nor are they obligated to obtain a special permit to operate short-term rentals. Unlike neighboring countries, the Faroe Islands have not established formal guidelines for these accommodations.

As of now, the Faroe Islands lack specific national legislation regulating short-term rentals. This absence of formal regulations means that there are no explicit legal requirements for hosts to obtain permission from landlords, local councils, or neighbors before offering their properties as short-term rentals.

In the Faroe Islands, income earned from short-term rentals is subject to taxation. Hosts must report this income to the Faroese Tax and Customs Authority, TAKS, and it is taxed as part of their personal income. The specific tax obligations depend on the nature of the rental arrangement and the total income earned.

As of January 2025, the Faroe Islands have introduced a tourist tax, effective from

As of January 2025, there are no specific legal requirements in the Faroe Islands for short-term rental hosts to register or report guest information to national authorities, such as immigration or local police.

As of January 2025, there are no specific nationwide health and safety standards mandated for short-term rental properties in the Faroe Islands.

Currently, the Faroe Islands do not have specific national laws requiring online platforms to ensure that short-term rental listings comply with national regulations. However, hosts can ensure their properties adhere to health and safety regulations, and they fulfill their tax obligations.

The Municipality of Tórshavn has expressed concerns over the surge in short-term rentals and is advocating for the authority to set conditions and regulations for such accommodations.

Anti-Discrimination Laws in the Faroe Islands

In the Faroe Islands, anti-discrimination legislation is designed to protect individuals from unfair treatment across various contexts, including housing and accommodations such as short-term rentals.

As of now, there are no specific mandates requiring short-term rental platforms to share data with national government authorities in the Faroe Islands. Unlike some countries that have implemented regulations obligating platforms like Airbnb to report listing information or host data to governmental bodies, the Faroe Islands have not established such requirements. Consequently, there is no designated authority demanding this data, and no legal basis has been set for such data-sharing practices.

Currently, there is no national legislation in the Faroe Islands mandating hosts to obtain liability insurance for short-term rental properties. While having liability insurance is considered a best practice to protect hosts against potential claims from guests, it is not a legal requirement. Hosts should assess their individual circumstances to determine the necessity of such insurance, especially in cases where the property is frequently rented out or if it is located in areas with higher risks.

As of January 2025, the Faroe Islands do not have specific national zoning laws or cultural heritage regulations that directly address the operation of short-term rentals in culturally or historically significant areas. However, there is growing concern among local authorities and communities regarding the impact of increased tourism and short-term rentals on these sensitive areas.

The Faroe Islands have implemented environmental regulations that indirectly impact short-term rentals (STRs), emphasizing sustainable tourism and environmental protection.

As of January 2025, the Faroe Islands do not have specific national tenant protection laws that address the eviction of long-term tenants in favor of short-term rentals. However, general landlord-tenant regulations exist to safeguard tenant rights and outline the responsibilities of both parties.

At present, digital platforms facilitating short-term rentals in the Faroe Islands are not legally required to verify hosts' compliance with national regulations before listing properties. This absence of mandatory compliance checks places the responsibility on individual hosts to ensure their rentals adhere to existing laws and guidelines. Platforms like Airbnb operate without a legal obligation to enforce regulatory compliance among their users in the Faroe Islands.

Reporting Requirements for Foreign Guests

As of January 2025, there are no specific national requirements in the Faroe Islands mandating hosts to report foreign guests to immigration authorities for short-term stays.

While there is no legal obligation for hosts to report the presence of foreign guests to national immigration authorities, it is advisable for hosts to:

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Currently, the Faroe Islands do not have specific national laws directly addressing consumer protection standards in short-term rental (STR) contracts. However, general principles from consumer protection guidelines can be applied to ensure fair practices in the STR market.

Although there are no specific consumer protection laws tailored to STRs, general consumer rights in the Faroe Islands emphasize fairness, transparency, and the right to accurate information. Hosts should provide clear terms and conditions, accurate property descriptions, and disclose any fees upfront to align with these principles.

Currently, the Faroe Islands have limited regulations specifically targeting non-resident owners of short-term rental (STR) properties. However, certain considerations apply:

The Faroe Islands currently lack a formal classification system specifically tailored for short-term rentals (STRs). Unlike many other countries where STRs are categorized based on property type, duration of stay, or amenities provided, the Faroe Islands do not impose such detailed classifications. Short-term rentals generally operate under the same framework as other rental accommodations, with few distinctions or requirements for categorization.

There are no additional regulations imposed during national events or holidays in the Faroe Islands that affect short-term rentals. Standard laws and guidelines remain in effect, and no changes are made to maximum length of stay, ID verification processes, curfews, or noise restrictions during such times.