Awesome! Your submission has been received!

Oops! Something went wrong while submitting the form.

Back to Regulation

Sierra Leone

Guesthouses Laws in Sierra Leone

Sierra Leone

Watch Video Get Started

Introduction

Introduction to Guesthouses in Sierra Leone

Sierra Leone, often called the “Lion Mountain,” boasts a range of popular destinations, from the breathtaking Tiwai Island Wildlife Sanctuary to the lush hills of Kabala and the historical Bunce Island with its storied past. Tourism has been steadily contributing to the nation’s economy, with short-term rentals locally often just called “guest rooms,” “holiday rentals,” or “visitor lodging” acting as a significant source of accommodation for both domestic and international travelers. Platforms like Airbnb, Booking.com, and local real estate Facebook groups have become go-to spots to list or find these properties. Recent estimates from the National Tourist Board of Sierra Leone indicate that tourism revenue has been on a gradual rise, generating essential foreign exchange and spurring local development. However, regulations around holiday rentals are emerging to ensure compliance with health, safety, and taxation requirements. Whether you’re a local resident or a non-resident investor, understanding the intricacies of Sierra Leone’s short-term rental landscape is vital. Below is an in-depth look at the regulations you should be aware of before opening your doors to the world.

Overview

Overview

At present, Sierra Leone does not have a dedicated national association solely for short-term rental operators. However, many STR hosts find support through broader hospitality and tourism associations, which offer networking, advocacy, and educational resources. Operators are encouraged to connect with local tourism boards and regional industry groups for guidance.

Interested in learning more about this country? Please complete the form below.

Awesome! Your submission has been received!

Oops! Something went wrong while submitting the form.

What is Guesthouses in Sierra Leone?

What are short Term Rentals in the Country?

In Sierra Leone, short-term rentals are commonly known on international platforms as “vacation rentals,” “holiday rentals,” or “tourist accommodations.” Locally, since English is the official language, these terms are generally used in day-to-day conversation, though informal expressions in Krio (and other local tongues) may also be encountered. By definition, STRs in Sierra Leone refer to the leasing of furnished accommodations from a single room to an entire property for periods typically shorter than 90 days. This definition is aligned with international industry standards, though actual durations may vary regionally.

Is Subletting Legal?

Is Subletting Legal in Sierra Leone?

Subletting in Sierra Leone is permitted under the condition that the primary tenant obtains explicit permission from the landlord. The lease agreement should clearly state whether subletting or listing the property as an STR is allowed. Failure to secure such consent may lead to legal disputes and breach of contract.

What is the maximum length of stay in Sierra Leone?

What is the maximum length of stay?

There is no nationwide statutory maximum length of stay for STRs in Sierra Leone. In practice, many rental agreements are structured for periods of up to 90 days. Nonetheless, some local jurisdictions or community-specific guidelines may impose alternative limits based on property type or local tourism strategies.

Is there any National Registration Requirement or Permit?

STR hosts in Sierra Leone are generally required to register their properties with local municipal authorities or through the Ministry of Tourism and Culture. The process typically includes:

Submitting property documentation and proof of ownership.
Providing identity verification and relevant permits.
Paying any applicable registration or licensing fees.

This registration helps ensure that properties meet health, safety, and zoning standards.

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

Yes. Many local lease agreements and municipal regulations require hosts to obtain:

Landlord Approval: Written consent from the property owner.
Local Council Notification: In some areas, local government approval may be necessary.
Neighbor Consent: Particularly in residential zones, informing or seeking approval from neighbors can help prevent disputes and maintain community harmony.

Is Short-term rental Income taxable?

Rental income in Sierra Leone is taxable regardless of whether the property owner is a resident or non-resident, provided the rental activity is commercial in nature. Below is an overview of the key points and legal references:

Tax on Rental Income
- All rental income from houses or buildings in Sierra Leone is subject to tax (Sections 3(3), 24, 25).
- If a person’s business primarily involves holding or letting property, rental income is treated as business income and may be taxed at the individual’s highest applicable rate (30%).
Withholding Tax (WHT) Requirements (Section 120(3))
- Rate: Taxable rental income is subject to a 10% WHT.
- Resident vs. Non-Resident:
  - Non-Resident Landlord: Individuals who rent from non-resident landlords must withhold the 10% tax; institutions must also do so. This WHT is considered a final tax (Sections 124, 125).
  - Resident Landlord: Institutions must withhold 10% on rent paid to resident landlords. However, for residents, this withholding may not be final; additional tax could be owed after the tax year ends.
Exemptions and Allowances
- A non-taxable threshold of Le1,500,000 in total rental income applies before WHT. Above that threshold, landlords can deduct 20% of the gross rental income from tax.
- Other deductible expenses include insurance, management costs, repairs, renewals, alterations, and improvements (Section 33(2)), as well as interest expenses (Section 35(1)).
- Capital allowances (Section 39(1)) apply to depreciation of assets (with building rates at 15%, 10%, or 5% as outlined in the Seventh Schedule).
Final vs. Non-Final Tax
- Non-Resident Owners: Once tax is withheld from their rental income, that WHT is final, and no additional tax return filing for the withheld amount is typically required.
- Resident Owners: WHT is usually not final. They may owe additional taxes when they file their annual return, depending on their total taxable income.
Payment Deadlines and Penalties
- Tax payments are generally due no later than 90 days after the rent payment becomes due.
- A penalty of 35% of the total rent due may be imposed for late or non-compliance.
Legal Interpretation and Current Position
- For those whose primary business is letting properties, the income can be taxed at a rate of up to 30%.
- Where tax is withheld from non-residents, it is a final tax; for residents, further tax assessment may apply.
- Deductions and allowances (like the Le1,500,000 threshold and 20% relief) primarily affect withholding tax calculations, but all standard deductions in the Income Tax Act remain available for eligible taxpayers.

Is there any National Tourism Fund or Tourist Tax?

Tax revenue is pivotal to Sierra Leone’s economic growth, with tourism serving as a major contributor. A clear example of this is the Tourism Levy a 2% charge applied to accommodations, meals, beverages, and related services offered by tourism establishments. This levy, alongside other taxes, furnishes the government with essential funds to support public services and enhance the overall quality of life for Sierra Leoneans.

Is there any Guest Registration and Reporting Requirement?

In order to ensure national security and facilitate immigration control, hosts may be required to:

Collect and maintain guest registration details.
Report the arrival of foreign visitors to local immigration or police authorities.
Maintain guest registers for a stipulated period.

Is there any National Health and Safety Requirements?

STR properties in Sierra Leone must meet minimum health and safety standards set by local authorities. These requirements typically cover:

Fire Safety: Installation of fire alarms and extinguishers.
Sanitation: Regular cleaning protocols and waste disposal systems.
Structural Safety: Ensuring the property meets building codes and structural integrity standards.

Is there any Platform Accountability Requirement?

Online platforms that list STR properties are increasingly expected to help ensure that all listings comply with national and local regulations. This includes verifying property registration, ensuring proper licensing, and providing accurate information about the property and its host.

Is there any Anti-Discrimination Law?

Sierra Leone’s legal framework prohibits discrimination in housing and rental practices. This means that hosts cannot deny accommodations based on race, gender, nationality, or other protected characteristics. Such laws are in place to protect both guests and the integrity of the tourism industry.

Is there any Data Sharing Requirements?

Sierra Leone currently lacks a standalone data protection law, so there is no comprehensive framework governing how personal data is collected, stored, or used. Nevertheless, the "Right to Access Information Act, 2013" offers some degree of personal data protection, and the more recent "Cyber Security and Crime Act 2021" addresses certain elements of cybercrime and privacy safeguards.

Is there any National Insurance Requirement?

While not uniformly mandated for all STR operators, it is advisable and in some cases required that hosts secure liability insurance. Such insurance covers property damage, guest injuries, and other unforeseen incidents, thereby providing financial protection and enhancing guest confidence.

Is there any National Zoning law/Cultural Heritage law?

Short-term rental properties must comply with local zoning regulations. In areas identified as culturally or historically significant such as parts of Freetown or heritage sites near Bunce Island additional restrictions may apply to preserve the character and integrity of these zones.

Is there any Environmental Regulations that affects STR?

Environmental sustainability is an emerging focus in Sierra Leone’s tourism sector. STR hosts are encouraged to adopt eco-friendly practices and comply with any regulations aimed at minimizing environmental impact, such as:

Energy efficiency measures.
Waste reduction and recycling programs.
Responsible water usage.

Is there any National Tenant Protection Law?

To protect long-term residents, Sierra Leone has tenant protection laws that may restrict landlords from converting properties exclusively for short-term rental use without following proper legal procedures. Such laws are designed to ensure housing stability and fairness for long-term tenants.

Is there any Reporting Requirements for Foreigners?

Hosts may be required to report information regarding foreign guests to local immigration or police authorities. This measure assists with national security efforts and helps monitor tourism flows. Reporting requirements typically specify the details to be collected and the time frame for submission.

Is there any Digital Platform Regulation Compliance?

Digital platforms that facilitate STR listings are expected to verify that hosts comply with all applicable local and national regulations. This verification process helps maintain consumer trust and ensure that all properties listed are properly registered and licensed.

Is there any Consumer Protection Law that affect STR?

Consumer protection laws in Sierra Leone ensure that rental agreements are fair, transparent, and enforceable. These laws cover:

The accuracy of property listings.
Clear communication of rental terms.
Fair dispute resolution procedures between hosts and guests.

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

Non-resident owners of STR properties in Sierra Leone must adhere to specific regulations. Non-compliance can result in fines, legal actions, or restrictions on future rental operations.

Is there any classification of STR in the country?

The Sierra Leonean government, through its Ministry of Tourism and Culture, distinguishes STR properties by their type and usage. Common classifications include:

Entire Homes/Units: Properties rented out in full.
Guest Houses/Bed and Breakfasts: Smaller establishments often managed by local families.
Shared Rooms/Apartment Rentals: Rooms within a larger property shared by the host and guests.

Local zoning rules and housing regulations may further influence these classifications, ensuring that properties meet community standards.

Are there Special National Event Regulations?

During national events or peak holiday periods, local governments in Sierra Leone may introduce additional regulations for STR properties. These can include:

Temporary adjustments to the maximum length of stay.
Stricter identification verification.
Curfews or noise restrictions to maintain community peace.

Is there any Penalty for Violating National Rules?

Violations of STR regulations in Sierra Leone can result in several penalties, including:

Monetary Fines: Financial penalties for non-compliance.
License Suspension or Revocation: Temporary or permanent loss of rental privileges.
Legal Action: Possible court proceedings in cases of severe or repeated breaches.

The exact penalty depends on the nature and severity of the violation.

Are there National Rules or Regulations Governing Short-Term Rentals in Sierra Leone?

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

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

Are there any Permits, Licenses, or Registrations for Guesthouses in Sierra Leone?

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

STR hosts in Sierra Leone are generally required to register their properties with local municipal authorities or through the Ministry of Tourism and Culture. The process typically includes:

Submitting property documentation and proof of ownership.
Providing identity verification and relevant permits.
Paying any applicable registration or licensing fees.

This registration helps ensure that properties meet health, safety, and zoning standards.

Is there any National Association for Guesthouses owners in Sierra Leone?

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

Access the latest compliance requirement for your state below

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.

Stay Compliant with Ease

Access the tools you need to stay compliant and grow your lodging business effortlessly. With Lodge Compliance, navigating regulations has never been easier.

Get Access