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When deciding whether to become an Airbnb host, it is important for you to understand the laws in your territory. As a platform and marketplace we do not provide legal advice, but we want to give you some useful links that may help you understand relevant laws and regulations in the United States Virgin Islands. This list is not exhaustive, but it should give you a good start in understanding your local laws. If you have questions, please refer to the territory’s Department of Licensing and Consumer Affairs (DLCA) (http://dlca.vi.gov/), the Virgin Islands Bureau of Internal Revenue (VIBIR) (http://www.vibir.gov/) , or other territorial agencies directly, or consult a local lawyer or tax professional.

Hotel and Guest House License

Operators of a hotel or guest house with between 1 and 4 units must obtain a valid Apartment House D, 4 or Less Units business license. The application process requires an application, a local police record check, zoning approval, and a fire inspection, along with paying a license fee of $130. This license must be renewed annually. The DLCA will request a tax clearance from the VIBIR as part of the renewal process. The fire inspector will require a copy of the first and signature page of the deed or lease that evidences property or possession, respectively, for the property to be inspected.

Other rules

It's also important to understand and abide by other contracts or rules that bind you, such as leases, condo board or co-op rules, HOA rules, or rules established by tenant organizations. Please read your lease agreement and check with your landlord if applicable.

Taxes

Income from the rental of property located in the United States Virgin Islands will be subject to certain territorial taxes. First, the guest will be responsible for the payment of a tax totaling 12.5% of the gross rental rate, which will be collected and remitted via the Airbnb platform under agreement with the United States Virgin Islands. Second, income from rentals received by the host may be subject to the gross receipts tax of 5%; there is generally an exemption for the first $9,000 of gross receipts per month; however, the taxpayer should file a yearly form 720-B, which is available at: http://www.vibir.gov/pdfs/Form_720BVI_Revised_09_2013.pdf. Finally, income received from rentals may be subject to United States Virgin Islands income tax. Please consult your tax professional for further details.

We are committed to working with local officials to help them understand how Airbnb benefits our community. Where needed, we will continue to advocate for changes that will allow regular people to rent out their homes.

Free tax guide

We want to make it easy for you to understand your tax responsibilities as a Host on Airbnb, so we’ve partnered with an independent third-party accounting firm to provide a free tax guide (available in English) that covers general tax information in the United States Virgin Islands.

Insurance

Work with your insurance agent or carrier to determine what kind of obligations, limits, and coverage are required for your specific circumstances.

Host damage protection and Host liability insurance

AirCover for Hosts includes Host damage protection and Host liability insurance, which provide you with basic coverage for listed damages and liabilities. However, these don’t take the place of homeowner’s insurance, renter’s insurance, or adequate liability coverage. You might need to meet other insurance requirements as well.

We strongly encourage all Hosts to review and understand the terms of their insurance policy coverage. Not all insurance plans will cover damage or loss of property caused by a guest who books your accommodation.

Learn more about AirCover for Hosts.

Liability and basic coverage

Review your homeowner’s or renter’s policy with your insurance agent or carrier to make sure your listing has adequate liability coverage and property protection.

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