Buy · rules · checked 30 September 2026

Holiday rental licence: what a villa buyer should know

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.

Exhibit 1

Which kind of renting are you planning?

The same villa can be let three ways; each needs something different.

One tenant, months or yearsLong-term leaseRenting to one tenant for months or years is ordinary residential use.

Licence: None needed
Tax: Final 10% of rent

Guests by the night or weekHoliday rentalIts own business licence (an NIB with the right business code), and the regency’s accommodation tax collected from guests.

Licence: Required
Tax: Accommodation regime

Owning through a companyPT PMAA 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.

Small-villa licence: Closed to foreign-owned
Ask: A notary, first

Rent from a long-term lease is taxed at a final 10% of the gross rent (PP 34/2017). It doesn't cover nightly or holiday income.

Exhibit 2

Why it matters now

Booking platformsThe Tourism Ministry has said unlicensed accommodation can be removed from booking platforms from 1 Aug 2026.
Tax on nightly incomeNightly 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.
Permits and title48 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 licence itselfThe small-villa rental licence is reserved for Indonesian co-ops and small businesses and is currently closed to foreign-owned companies.

Exhibit 3

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. Which zones usually fit holiday letting.

Exhibit 4

What to ask the seller before you count on holiday income

0 of 5 asked · saved in this browser only

Can I see the land certificate (SHM, HGB or the lease deed)? Is it in the seller's name?
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)?
Is it rented now? Will that contract continue after the sale?
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: villas for sale in Bali. Before you pay anything, work through the due diligence checklist.

This is general information, not legal advice. Check the title and the contract with an independent notary (PPAT) before paying anything.