Is Airbnb legal in Bengaluru?

In Bengaluru, Karnataka, individuals looking to host through Airbnb must navigate a structured set of regulations to ensure compliance with local laws and guidelines. Here’s a concise overview:

1. Homestay Registration: Hosts operating homestays must register their properties with the Karnataka Department of Tourism. A homestay is defined as a premises where the host or family members also reside. Registration involves confirming that the property does not already hold a hotel or similar commercial registration.

2. Display Requirements: After successful registration, hosts are required to display a name board at their premises indicating that the property is "Registered under the Tourism Department of Karnataka Government."

3. Record Keeping: Hosts are mandated to maintain specific records, including:

   • A complaint/suggestion book to gather feedback from guests.
   • A registration book for recording guest details.
   • A serially numbered bill book and a payment receipt book for transactions.

4. Guest Registration: Local regulations necessitate that hosts maintain a detailed register of guest check-ins and check-outs, particularly for foreign tourists. This includes capturing passport details and submitting Form C to authorities within 24 hours of a foreign guest's arrival.

5. Legal Obligations: While there is a level of ambiguity regarding the need for additional permits or permissions based on discussions with local tourism officials, it is generally advisable for hosts to consult relevant local authorities to clarify any additional obligations.

6. Tax Compliance: Hosts are responsible for understanding and adhering to local tax regulations, including the Goods and Services Tax (GST) and withholding tax requirements under Indian tax laws. Providing a Permanent Account Number (PAN) to Airbnb is essential for correct tax treatment on earnings.

In summary, prospective Airbnb hosts in Bengaluru must ensure proper registration, maintain necessary records, comply with tax laws, and stay informed about any additional local regulations to operate legally and effectively.