Back to blog

Airbnb in Bali in 2026: New Rules, Licenses, and Taxes for Housing Rentals

After reports about a potential ban on Airbnb in Bali, the Indonesian Ministry of Tourism officially confirmed: online platforms are not planned to be closed. The point is for villa and apartment owners in Bali to operate legally, pay taxes, and obtain the necessary licenses.

Currently, the official hotel association on the island lists about 378 legal hotels. However, on Airbnb and other platforms, there are approximately 16,000 accommodations in Bali: villas, guest houses, apartments. A significant portion of these properties do not have the full package of permits and fall under 'grey' housing rentals.

Deadline March 31, 2026: What Changes for Housing Rental in Bali

The central government has set a deadline: by March 31, 2026, all housing posted on online platforms must be registered according to the rules and have the required licenses. If not done, the listing may be removed from sites like Airbnb, Booking, and others.

For tourists, almost nothing changes for now: villas or houses in Bali can still be booked through Airbnb. However, operating 'outside the system' becomes increasingly risky for owners of illegal rentals.

Basic Documents for Operating Through Airbnb: Company Registration and Taxes

To register a company and an account on Airbnb in Bali, the foundational documents (deed of establishment, SK) and a business identification number issued through the OSS system are usually sufficient. However, this is not enough if the goal is to legally rent out housing on a daily basis.

For PT PMA, there is a prohibition on short-term rental of residential properties. If a property is legally classified as residential (residential villa, apartment), it cannot be rented as a 'daily house through Airbnb' by a PT PMA without a hotel license.

Once a property enters the short-term rental segment, accommodation requirements come into effect. Depending on the type of business activity, a Sertifikat Standar may be required, along with a permit for commercial use (PBG) of the building and a certificate of suitability and safety (SLF). In some cases, registration with local government and/or desa adat is required, as well as registration for local tax payments such as the Hotel & Restaurant Tax (PHR).

How the Type of Activity is Chosen

A separate key aspect is the choice of KBLI. This is a code of activity type by which the state recognizes your business: property operation, guest accommodation, or a mixed model. Depending on the KBLI, licenses, inspections, and tax burdens vary. In practice, for companies with foreign capital (PT PMA), codes related to accommodation and property management, such as 55900 and 68111, are used.

Attempting to apply KBLI 68111 for the short-term rental of housing does not solve the issue: this code describes general property operation, not the hotel business and short-term guest accommodation and requires a separate legal framework.

Indonesian companies (PT PMDN) have more options. They have access to an extended list of KBLI for villas, guest houses, and other types of accommodation. Yet, there is no single template; permissible codes depend on the region, as local authorities in Bali can impose their restrictions, and the requirements differ for PT PMA and PT PMDN. There is no universal 'KBLI for Airbnb' — the scheme must be tailored to a specific property, area, and model of working with the property owner.

PHR Tax in Bali: How Much Villa and Apartment Owners Pay

The tax aspect for rental through Airbnb in Bali in 2026 revolves around the Hotel & Restaurant Tax (PHR). Almost all types of short-term accommodations fall under this local tax with a rate of 10%. It is collected from hotels, villas, guest houses, and other short-term rental objects, administered by the local government.

It is important to note that Airbnb does not withhold or remit PHR: the platform does not act as a tax agent. The business operator registers in the tax system, obtains an NPWPD, records rental revenue, submits reports, and pays PHR monthly. Airbnb commissions and service fees are not related to this tax and do not replace the obligation to pay it.

What is Needed to Legally Rent Housing Through Airbnb in Bali in 2026

Ultimately, registering a company and an account on Airbnb is only the first step. To legally rent out housing in Bali in 2026, several tasks must be completed simultaneously: choose the correct KBLI for the real business model, obtain necessary licenses and certificates, convert the property to a commercial category if needed, and register as a PHR taxpayer. Without this, the risk of fines and property removal from platforms increases.

In practice, foreign investors in Bali use several working schemes. In one, the property is officially converted to commercial use, classified as accommodation, obtains a full set of permits, and the business pays PHR. Airbnb then acts as a sales channel for the accommodation service, not as a platform for 'renting a residential apartment for a day.'

In the second scenario, a key role is played by the Indonesian company PT PMDN, which acts as the owner or official landlord. It legally rents out the property on a short-term basis as residential real estate, using suitable villa/accommodation-KBLI while adhering to local regulations.

The third option involves a management company, which is particularly popular among foreigners. The owner or landlord is a PT PMDN or an individual, while the foreign PT PMA operates as a management structure. It manages the marketing of the property, posts listings on Airbnb and other platforms, handles bookings and guest services.

PT PMA generates income as a management fee, not as rental income. This approach reduces the risk of claims against the company as an illegal landlord and aligns better with its business activities and tax obligations.

How Legal Indonesia Helps Arrange Airbnb Rentals in Bali Without Risks

Legal Indonesia assists foreign entrepreneurs in creating a legal framework for operating with Airbnb and renting housing in Bali: determining the company format (PT PMA, PT PMDN, or combination), choosing the right KBLI for the specific business model, obtaining a KITAS, going through licensing, and connecting the PHR payment system.

Initial consultation allows for planning the structure of villa and apartment rentals in Bali in advance, reducing the risk of fines and object blocks after the 2026 regulation tightening.

Contact us for details

You may also like
22/12/2025Compensation after an Accident in Bali: Why You Can’t Demand Repair Payment Immediately

The story of this accident in Bali clearly shows how the rules work here and where you may unexpectedly encounter legal issues. Our client was involved in an accident: he was traveling on the main road when a local biker suddenly emerged from a side

18/12/2025December 25th and 26th will be holidays throughout Indonesia

Dear clients! December 25th and 26th will be holidays throughout Indonesia. Government offices such as Immigration offices will not be operational. Our office and courier service will also be resting on these days. Online support will still be

27/11/2025"House Under Arrest": Tenant Evicted Due to Owner's Mortgage Obligations

Everything started as usual: long-term lease in Bali, contract, deposit, and payment for 1 year in advance. After 8 months, an unexpected visit from people in uniform: bank representatives inform that the house owner is not paying the mortgage. The

27/11/2025How You Can Be Deceived When Registering a Company

Last month, a client approached us wanting to open a company for short-term villa rentals, management, repair, and maintenance. After a legal review, Legal Indonesia specialists explained that short-term property rentals for foreign companies are

26/11/2025Celebration of Kuningan in Bali

November 28th, many government offices, including immigration offices, banks, and other authorities in Bali will be closed. Due to the celebration of Kuningan. The Legal Indonesia office will be operating as usual. The office is open, couriers are

12/11/2025Celebrations of Galungan and Kuningan in Bali on November 18, 19, 20, and 28!

On November 18, 19, 20, and 28, Bali will celebrate Galungan and Kuningan—Balinese Hindu festivals dedicated to the triumph of good over evil and honoring the spirits of ancestors. They include ceremonies, offerings, and prayers for the purification

13/11/2025Ban on Dollars in Indonesia

Two Prices - One Big Risk! The company PT PMA ROGA AND KOPITA was summoned for an interview with the police because the website listed the US dollar equivalent next to the price in rupiahs (IDR) for reference. For foreign users, this seemed like a

10/11/2025Developer torments clients for 8 months

Pressure Instead of Deadlines The deadlines for handing over our clients' villa in Indonesia have been pushed so far that eight months of madness from the developer have become the norm. Instead of a clear delivery date and quality service, there's

03/11/2025IT Business in Indonesia: How Foreign Companies Can Enter the Market

Indonesia is one of the most dynamically developing digital markets in Asia. The country actively invests in technology, e-governance, cybersecurity, and startup ecosystems. For foreign IT companies, this creates favorable conditions for expansion

28/10/20259 Mistakes by Accountants in Bali That Cause Companies to Lose Licenses and Pay Fines

Managing accounting in Indonesia requires not only attention to deadlines and documents but also a deep understanding of local laws. Even experienced accountants in Bali often make mistakes that can lead to fines, tax audits, and even company

29/10/2025Indonesia Introduces Mandatory Halal Certification: What Businesses Need to Know

Starting 2026, Halal Certification Becomes Mandatory Beginning in 2026 , Indonesia will enforce a new rule: all food, beverages, cosmetics, and medicines must be halal-certified . Products without a valid halal certificate will be considered

22/10/2025When the Developer Disappears: How to Resolve a Conflict Without Court?

Sometimes unforeseen difficulties arise during construction. Our clients faced a situation where the developer stopped communicating and ignored all attempts to make contact. This happened because the construction company failed to meet the real

23/10/2025What’s Better for Long-Term Stay in Bali: a Remote Worker KITAS or a D12 Visa?

Many foreigners planning a long-term stay in Bali often have to choose between the D12 visa and the Remote Worker KITAS . Both allow you to stay in Indonesia for an extended period, but they differ significantly in terms of legal status, rights, and

12/10/2025Roof and Wall Leaks 8 Months After Villa Completion

Our client invested in building a villa in Bali. The contract that the contractor proposed to him appeared simple and 'standard': price, deadlines, scope of work. There were no clauses regarding material quality guarantees or defect rectifications.

Contact us:
PT LEGAL INDONESIA, Jl. Sunset Road No 900A, Kuta, Bali