New short-term rental (STR) rules in Nova Scotia impact operators in Yarmouth, Clare, and Digby. These regulations aim to balance tourism with housing needs and require compliance with provincial and local laws. Non-compliance can result in fines up to $100,000.
Provincial Requirements
Registration Requirements
| Type of Accommodation | Annual Fee | Requirements |
|---|---|---|
| Primary Residence | $50.00 | Proof of primary residence |
| Commercial (Tier 2) | $500.00 | Proof of non-primary residence |
| Commercial (Tier 3 – Digby) | $240.00 | Municipal compliance documentation |
| Traditional Tourist (1–4 rooms) | $50.00 | Land use compliance proof |
| Traditional Tourist (5+ rooms) | $150.00 | Land use compliance proof |
Each rental property must have its own unique registration number if it has a different civic address. This number is mandatory for advertising on platforms like Airbnb and VRBO. Registrations must be renewed annually by April 1 to stay compliant.
Required documents include:
- Property owner consent (if a tenant operates the rental)
- Condo board approval for condominium units
- Municipal land-use compliance verification
- Proof of primary residence when needed
Tax Requirements
Operators must collect a 15% Hotel Sales Tax on all bookings. Rental income must be reported using Form T776, with deadlines of April 30 for standard income tax and June 15 for self-employed income.
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Try the CalculatorLocal Rules by Municipality
Yarmouth Rules
In Yarmouth, short-term rentals must adhere to provincial registration plus local requirements:
- Primary Residence Rentals: Allowed in residential zones as home occupations
- Non-Primary Rentals: Require rezoning if located in non-commercial zones
- Compliance Letter: Zoning compliance confirmation is mandatory
As of late October, the development department had received 39 requests for compliance letters.
Clare Rules
Clare aligns with the provincial framework with additional local guidelines. Property owners must obtain zoning verification confirming compliance with land-use by-laws and a municipal compliance letter. Contact the Clare municipal office to confirm land-use compliance before completing provincial registration.
Digby Rules
In Digby, commercial short-term rentals fall under Tier 3 with stricter requirements:
- Annual Registration Fee: $240 for commercial properties
- Municipal Compliance: Written confirmation from town officials is necessary
- Land Use Requirements: Rentals must meet local zoning regulations
- Compliance Letter: A valid compliance letter is required
Operating Your Rental Legally
Guest Rules and Screening
Set clear rules for your guests to avoid misunderstandings and stay compliant:
- Occupancy limits based on local codes
- Quiet hours (e.g., 10:00 PM–7:00 AM)
- Parking guidelines
- Check-in and check-out times
- Emergency contact information
Required Insurance
Most standard homeowner's insurance policies do not cover short-term rentals. Look for specialized coverage offering protection against theft and vandalism, tenant belongings (up to $1,500), loss of rental income, and equipment breakdowns. Ensure your policy includes personal liability coverage.
Working with Neighbors
Good relationships with neighbors help avoid conflicts. Share your contact details so neighbors can reach you with concerns, use noise monitoring devices to address disturbances quickly, and provide a neighborhood guide outlining local customs and expectations.
Next Steps
- Register with Nova Scotia's Tourist Accommodation Registry
- Collect and remit taxes on time
- Familiarize yourself with zoning and licensing rules specific to your area
- Contact municipal offices (Yarmouth, Clare, Digby) for information on zoning and permits
For province-wide context, see our Nova Scotia STR Regulation Hub. To understand how zoning maps work, read our guide to Nova Scotia zoning maps and bylaws.