Antigua short-term rental rules: ABST, the guest levy and licensing

This is a plain-English overview, not tax or legal advice. Rates and processes change, so confirm the current position with the Inland Revenue Department and an accountant before you file anything.

Is short-term renting allowed in Antigua?

Yes. Owners of second homes and investment properties can rent them to visitors, provided the property is run as compliant tourist accommodation. There's no national rule limiting how many properties one owner can list.

Tourism licensing

Paid visitor accommodation is treated as a regulated tourism service. Assume your villa needs tourism accommodation licensing or registration, and check the current requirements and fees with the tourism authorities before your first booking. Each property is treated separately.

ABST (Antigua and Barbuda Sales Tax)

ABST applies to short-term stays at villas and Airbnbs as well as hotels. The standard rate rose from 15% to 17% on 1 January 2024. Accommodation can be treated differently from the standard rate, so confirm which rate applies to your property.

In February 2026 the Inland Revenue Department publicly urged villa and Airbnb operators to register and file ABST returns, after seeing a sharp rise in short-term rentals. Registration starts at the IRD's Taxpayer Services Section. The department also stressed keeping accurate books, because those records are what your ABST and levy figures are calculated from.

The Tourism Guest Levy

The levy is charged per guest, per night, on hotels, guest houses, villas and Airbnb rentals alike:

• US$3 per guest per night where the room rate is up to US$150 a night
• US$5 per guest per night where the rate is above US$150
• Children aged five and under are exempt

On a four-night stay for four adults at a US$300-a-night villa, that's 4 × 4 × US$5 = US$80 to collect and remit.

Why this matters now

Government attention on short-term rentals has grown with the sector. The hotel association has called for enforcement to extend to villas, and a government review once found that a large share of Airbnb-listed properties weren't formally registered. Getting compliant early is cheaper than catching up later.

What a manager should handle

Your manager should set up each booking so the levy is collected, keep clean records of every reservation and payment, and give your accountant what they need each month. Ask about this directly when choosing a manager.

Not sure where your property stands? Mention it in your free property review and we'll point out what needs attention.