Ask Sheila – The New Airbnb Rules in Bali: What Villa Owners MUST Know Before March 2026

Big news this week with the government announcing a crackdown on illegal villa rentals in Bali. It is now officially required for all villa listings on Airbnb to register their proof of legal status by 31 March 2026. Without this, the villa listings will be removed from the Airbnb platform. 

If you have a Bali villa and you (or your real estate agency/villa management agency) rent it out for short-term rentals, you absolutely need to be aware of these new requirements. 

There has long been a perceived “grey area” regarding how non-Indonesian villa owners have been able to offer short-term villa rentals. This may have been a result of lack of enforcement by the authorities. It seems that this era will soon be over. 

It is estimated that about half of Bali’s airbnb villa listings online do not comply with the requirements. According to the government proclamation, villa rentals will need to be registered (and pay tax). Without this, they will be delisted. The government had previously informed OTAs such as Airbnb, booking.com and Agoda. 

Navigating complex bureaucracy regarding villa short-term villa rentals can be very challenging. Different areas are zoned for different types of activities. Only certain types of individuals or companies can conduct these activities in different zones.  In addition, complex company structures can be required to do business in Indonesia. Companies require specific business activity codes that regulate what type of services they can offer. Not every code is possible in each zone or for each business structure. 

There’s also a lot of misleading information about what is and isn’t possible. Ask 5 experts and you’ll get 5 different answers! Throw into the mix the fact that some villa owners rent out their villas through a real estate/villa management company, and it’s easy to be completely confused! 

Of course, it remains to be seen to what extent this new requirement will be enforced. However, it’s a safe bet to say that the days of building your dream villa to stay in during your annual holiday to Bali, and rent it out (without the correct licence) though AirBnB for the rest of the year are soon coming to an end. 

If you think that your current way of renting out your Bali villa may not comply with the requirements, and you want some advice on how to legalise your situation, email us at admin@bali-interiors.com. We know a great legal consultant company that we have used from everything from building permits, zoning, company set-up , well permits, and the other necessities of living and working in Bali. We’re happy to pass on the contact info. 

It certainly appears that these requirements will be enforced so if you need to legalise the way you rent out your villa, don’t put this off!