Renting to one tenant for months or years is ordinary residential use. Renting to holiday guests needs its own business licence (an NIB with the right business code in the government's OSS system), and the regency's accommodation tax is collected from guests. The small-villa rental licence is reserved for Indonesian co-ops and small businesses and is currently closed to foreign-owned companies, so ask a notary what your structure allows before you buy.
Why it matters now
The Tourism Ministry has said unlicensed accommodation can be removed from booking platforms from 1 Aug 2026.
Nightly rental income is treated as accommodation services, not rent, so it is taxed differently from a long-term lease; ask a tax adviser which regime applies to you.
48 unpermitted buildings on state land were demolished in July 2025 at Bingin Beach. A running business doesn't prove the land title or the permits are valid.
The zone comes first
Zone colours on official maps are a guide: what counts is the zone code in the regency's plan and a KKPR check for the exact plot.
Owning through a company
A foreign-owned Indonesian company can hold a right to build and use the land (HGB). It usually starts at 30 years and can be extended and renewed. It needs a registered company with the right business licence, and it has setup and yearly costs. Owning through a company does not by itself let you rent the villa to guests: short-stay rental needs its own tourism licence, and the small-villa rental licence is currently closed to foreign-owned companies. Check what's allowed for your structure before you buy.
What to ask the seller
- What zone is the land in (for example yellow or pink), and does it allow a villa or renting it out?
- Is there a building permit (PBG, formerly IMB)? A certificate that the building is fit to use (SLF)?
- What were the actual bookings and costs last year? (Numbers, not projections.)
Ask these in writing and keep the answers. An independent notary can check the title for you.
Every villa for sale on Ask Dalam lists the questions its own listing leaves open. Browse villas for sale in Bali.
This is general information, not legal advice. Check the title and the contract with an independent notary (PPAT) before paying anything.