Transient Rentals Laws in Iran

Transient Rentals Laws in Iran

Iran

Introduction
Introduction to Transient Rentals in Iran

From the bustling metropolis of Tehran to the stunning architectural heritage of Isfahan, the serene mountain vistas of Alborz, and the desert beauty of Yazd, Iran is a beautiful country with ancient and wonders breathtaking landscapes which is becoming an unexpected yet thriving hotspot for short-term rentals. Iran offers a unique tapestry of experiences for travelers seeking an authentic taste of Persian culture. This tourism boom has fueled the short-term rental market, with local and foreign visitors flocking to experience Iran’s rich history, vibrant marketplaces, and natural beauty in more intimate settings.

Short-term rental sector impacted positively the revenue stream of the Iranian government, with millions generated from licensing and taxes as tourism steadily grew. This surge has been catalyzed by popular platforms like Tap30 and Snapp, which, alongside international giants like Airbnb and Vrbo, have given travelers unprecedented access to local accommodations. By blending tradition with modern hospitality, Iran’s short-term rentals are reshaping the travel industry, creating economic opportunities for locals, and promoting cultural exchange on a global scale.

Overview

From the bustling metropolis of Tehran to the stunning architectural heritage of Isfahan, the serene mountain vistas of Alborz, and the desert beauty of Yazd, Iran is a beautiful country with ancient and wonders breathtaking landscapes which is becoming an unexpected yet thriving hotspot for short-term rentals. Iran offers a unique tapestry of experiences for travelers seeking an authentic taste of Persian culture. This tourism boom has fueled the short-term rental market, with local and foreign visitors flocking to experience Iran’s rich history, vibrant marketplaces, and natural beauty in more intimate settings.

Short-term rental sector impacted positively the revenue stream of the Iranian government, with millions generated from licensing and taxes as tourism steadily grew. This surge has been catalyzed by popular platforms like Tap30 and Snapp, which, alongside international giants like Airbnb and Vrbo, have given travelers unprecedented access to local accommodations. By blending tradition with modern hospitality, Iran’s short-term rentals are reshaping the travel industry, creating economic opportunities for locals, and promoting cultural exchange on a global scale.

Property
Overview

In Iran, there isn't a dedicated national association exclusively for short-term rental (STR) owners and operators. However, the

Property
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short term rentals
What is Transient Rentals in Iran?
What are short Term Rentals in the Country?

In Iran, short-term rentals are commonly referred to as

Is Subletting Legal?
Is Subletting Legal in Iran?

In Iran, tenants are generally restricted from carrying out short-term rentals (STR) on properties they lease without explicit permission from the landlord. This restriction is outlined in Article 10 of the Iranian Civil Code, contractual agreements like lease contracts are binding, and subleasing or renting out the property on a short-term basis typically requires the landlord’s written consent. Tenants who conduct STRs without such consent risk legal consequences, including possible eviction, as it would be considered a violation of the lease agreement and local laws.

National Association for STR Owners
What is the maximum length of stay in Iran?
What is the maximum length of stay?

According to available information,

Is there any National Registration Requirement or Permit?

Yes, hosts in Iran do need to register their short-term rental properties, and they must obtain a permit through the

Is there a need for Permission from Landlord/Local Council/Neighbors?

In Iran, operating a short-term rental involves several legal considerations:

Is Short-term rental Income taxable?

In Iran, short-term rental income is subject to the following national taxes and requirements:

Is there any National Tourism Fund or Tourist Tax?

There is no specific mention of hosts being required to contribute to national tourism boards or funds, nor to collect taxes directly from guests for short-term rentals in Iran. However, general tax obligations in Iran for individuals and businesses likely apply to short-term rental income, such as:

Income Tax, Corporate Tax for Non-Residents and Withholding Taxes, Iran does not impose a national VAT, GST, or specific lodging tax on rental income at the national level.

Is there any Guest Registration and Reporting Requirement?

The Ministry of Cultural Heritage, Tourism, and Handicrafts in Iran does not explicitly state if hosts must report guest information to authorities. However, reporting requirements are common in Iran, hosts offering short-term rentals are required to register and report guest information to national authorities, including local police and immigration departments. This practice is part of the country's efforts to maintain security and monitor the movement of individuals within its borders.

Is there any National Health and Safety Requirements?

The health and safety standards for short-term rental properties in Iran are primarily governed by Iran’s general health and occupational safety laws, which emphasize safe and habitable conditions for all types of properties, including short-term rentals. Here are key elements of these standards:

Is there any Platform Accountability Requirement?

The Likibu platform does not outline requirements for online platforms to ensure compliance with Iran’s laws for short-term rentals, focusing instead on listing and booking options. However, platforms may need to verify that hosts have proper licenses and fulfill tax and guest reporting obligations, particularly for foreign guests. Consulting local authorities, like the Ministry of Cultural Heritage, Tourism, and Handicrafts, is recommended for full compliance.

Is there any Anti-Discrimination Law?

There is no specific mention of Iranian laws prohibiting discrimination against guests in short-term rentals. Iranian law heavily restricts freedoms related to gender, religion, and sexuality, and includes stringent controls on personal behavior and expression. Discrimination against specific groups, including religious minorities like Baha’is, LGBTQ+ individuals, and women, is legally sanctioned in various ways under Iranian law.

Therefore, while there is no explicit prohibition on discrimination against guests in short-term rentals, the broader legal framework in Iran often permits or enforces discriminatory practices, particularly based on gender, religious belief, and sexual orientation.

Is there any Data Sharing Requirements?

The provided information from the Ministry of Cultural Heritage, Tourism, and Handicrafts does not explicitly mention a mandate for short-term rental platforms to share data with national government authorities in Iran. However, as is common in many countries, there may be underlying expectations or regulations that require short-term rental platforms to comply with data-sharing for security or regulatory purposes.

Is there any National Insurance Requirement?

In Iran, hosts offering short-term rentals, known as "Ejareh Koutah Moddat," are not explicitly mandated by national law to carry liability insurance. However, obtaining such insurance is highly recommended to protect against potential risks, including property damage and guest injuries. While specific legal requirements may not be in place, the Ministry of Cultural Heritage, Tourism, and Handicrafts advises hosts to ensure their properties meet safety standards and comply with local regulations. Consulting with local authorities or legal experts can provide clarity on any regional obligations and help hosts make informed decisions regarding insurance coverage.

Is there any National Zoning law/Cultural Heritage law?

According to the UNESCO National Cultural Heritage Laws Database, Iran has several regulations to protect culturally and historically significant areas from developments that could include short-term rentals:

Is there any Environmental Regulations that affects STR?

The Iranian Department of Environment (DOE) has yet to establish specific nationwide sustainability requirements targeting short-term rentals (STRs). However, the DOE, as the principal environmental regulatory body, oversees broader environmental protection efforts that can indirectly affect STR operations. These include regulations on:

Is there any National Tenant Protection Law?

Iranian laws indirectly protect long-term tenants from eviction for conversion to short-term rentals. While no specific law prohibits such evictions, rental agreements generally secure tenants' stability through:

Is there any Reporting Requirements for Foreigners?

In Iran, hotels and accommodations must report foreign guests’ information, including passport details, stay duration, and contact information, to immigration authorities. This process is being modernized with an

Is there any Digital Platform Regulation Compliance?

Yes, platforms listing short-term rental properties in Iran should verify compliance with national regulations before featuring such listings. Iran has specific laws governing property rentals, including requirements for permits, licenses, and adherence to local regulations. Additionally, platforms must ensure that properties listed comply with these national regulations to avoid legal complications and potential penalties. This includes verifying the property's eligibility for rental and ensuring that all necessary licenses and approvals have been obtained. By ensuring compliance, platforms can maintain trust with users and operate within the legal framework of Iran.

Is there any Consumer Protection Law that affect STR?

The "Consumer’s Right Protection Law" in Iran, approved in 2008, is the main legislation aimed at safeguarding consumer interests, including in contracts such as short-term rentals. This law aligns with several principles from the United Nations Guidelines for Consumer Protection, ensuring the availability of essential information, fair marketing practices, and avenues for redress. Key elements include:

Is there any Law that applies to Non-resident Owners?

Is there any classification of STR in the country?

In Iran, short-term rentals are classified by:

Are there Special National Event Regulations?

During national events and holidays in Iran, additional regulations may apply to short-term rentals, or "Ejare-ye Kootah Moddat," to maintain public order and respect cultural traditions:

Is there any Penalty for Violating National Rules?

The information from the Ministry of Cultural Heritage, Tourism, and Handicrafts does not specify exact penalties for non-compliance with short-term rental regulations in Iran, such as renting without a permit. However, in similar cases, penalties could potentially include:

Are there National Rules or Regulations Governing Short-Term Rentals in Iran?
Are there National Rules or Regulations Governing Short-Term Rentals in the Country?

Iran lacks specific national laws solely for short-term rentals. However, existing laws impact this activity:

  • Civil Code: Governs lease agreements (requiring written contracts).
  • Landlord and Tenant Act (1997): Provides details on landlord-tenant relationships.
  • Tourism Regulations: Apply to established hotels but may indirectly affect larger-scale short-term rentals.
  • Cultural Norms: Guest registration with authorities is common; respecting cultural norms is crucial.

Key challenges include the lack of a clear definition of "short-term rental" and inconsistent enforcement. It's recommended to have written agreements, consult legal professionals, and respect local customs.

Is there any National Tax that affects short-term rental?

In Iran, short-term rental income is subject to Income Tax.

  • 25% of gross rent is typically deductible for expenses.
  • The remaining 75% is taxed at progressive individual income tax rates.

If the rental is considered a business, different tax regulations (potentially higher rates) may apply. Some exemptions might exist for certain residential properties. Consulting a tax professional in Iran is highly recommended for accurate advice.

permits, license
Are there any Permits, Licenses, or Registrations for Transient Rentals in Iran?
Are there any Permits, Licenses, or Registrations for Short-term Rentals in the Country?

Yes, hosts in Iran do need to register their short-term rental properties, and they must obtain a permit through the

Is there any National Association for Transient Rentals owners in Iran?
Is there any National Association for STR owners in the Country?

In Iran, there isn't a dedicated national association exclusively for short-term rental (STR) owners and operators. However, the

National Association for STR Owners

Disclaimer

Lodge compliance is not a licensed tax or financial advisor. Therefore nothing in the above article should be construed as tax, legal, or financial advice. Contact your local tax office for information regarding your personal circumstance.

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