Renting a villa to guests in Bali: licence, business and tax

This page is for a foreigner who owns, buys or plans to rent out a villa, house or rooms to tourists for short stays in Bali. It states what the regulations say, with the article, and says where they are silent. It is general information, not legal advice. Who may hold the land or the building is a separate question; the page on leasing covers the lease side.

The rules changed in 2025 and 2026. We used the texts in force on 2 October 2026: PP 28/2025 on risk-based licensing (it replaced PP 5/2021), Permenpar 6/2025 on tourism business standards (it replaced Permenparekraf 4/2021 and 8/2021) and Permeninves/BKPM 5/2025 (it replaced BKPM Regulation 4/2021). A guide that cites the earlier texts, or only the 2020 activity codes, may be out of date.

Hotel tax was checked in four of Bali's nine kabupaten and kota. The other five were not checked for this page.

The section on foreign guests and APOA was checked on 3 October 2026.

Choose the activity code first: the licence, the standard and the question of who may run the business follow from it. In KBLI 2020, villa (code 55193) means private houses rented specifically to tourists, with their facilities, and managed by the owner. Pondok wisata or home stay (55130) is daily paid lodging run by an individual in a dwelling that the owner lives in and partly lets. Code 55199 covers other short-stay lodging, including bungalow, cottage, motel and guesthouse (pondok tamu).

Since 15 June 2026 OSS applies KBLI 2025 (Peraturan BPS 7/2025). The BPS conversion table maps 55193 to 55203 Aktivitas Vila, 55130 to 55201 Aktivitas Rumah Tinggal Sewa (Homestay), and 55199 to 55209, other short-term accommodation. The word guesthouse is not in the 2025 text of 55209; the conversion table is what places it there. PP 28/2025, Permenpar 6/2025 and the investment list still cite the 2020 codes, so read both numberings.

New OSS applications use KBLI 2025. According to the Ministry of Investment's press release on the joint circular of the investment, law and statistics authorities, licences issued, verified or approved before the switch stay valid, and a change of code number alone is adjusted automatically. We read the press release, not the circular itself. OSS data for the 2025 villa code show the risk level menengah rendah (medium-low), a Sertifikat Standar as the licence, the bupati or walikota as the authority, and only micro, small and medium scales. Which code fits your house depends on how it is used; ask your notary or the licensing office.

A villa business needs a business registration number (NIB) and a Sertifikat Standar, both through OSS. For a medium-low risk activity they are the whole business licence (PB). The Sertifikat Standar is the business actor's statement that it will meet the business standard (Pasal 131(2)), and the basis for preparation, operations and commercial activity. The annex to PP 28/2025 shows villa, pondok wisata and guesthouse as issued automatically by the bupati or walikota. Every business actor, individual or entity, needs an NIB and holds only one.

Basic requirements come first: confirmation that the use fits the zoning (KKPR), an environmental approval (PL), and the building approval and fitness certificate (PBG and SLF); see the page on building permits. PP 28/2025 forbids government at every level to issue basic requirements or licences beyond those it sets (Pasal 6(1)). It does not remove tax registration or Bali's own duties, which come below.

In Permenpar 6/2025 the mandatory items for villa, pondok wisata and guesthouse are two: a Dokumen Penilaian Mandiri, a self-assessment of readiness to apply the standard, and a Sertifikat Laik Sehat (SLS). For a villa it covers items such as a business sign, an office, first aid and fire equipment, clean water, secure storage, a clear ownership status of the premises, priority for local workers, and a documented structure, business plan and procedures. A guesthouse must also submit periodic activity reports. The annex lists the Sertifikat Laik Sehat as a separate PB UMKU, a licence that supports the business, not part of the NIB and the Sertifikat Standar.

The fuller criteria in points 6.1 to 6.4 of each standard apply only if the operator chooses to standardise and certify voluntarily. They include, for a villa, a building intended as a villa business and, for pondok wisata, at most five guest bedrooms, guest identity records and reporting of foreign guests. That wording is not among the mandatory items, so the Permenpar standard does not make it a duty. The immigration law separately obliges the owner or manager of lodging to give data on the foreign guests staying there when an immigration officer or a police officer asks (UU 6/2011 Pasal 72(2), as amended by UU 63/2024). Failing to do so is an offence under Pasal 117: a fine of up to Rp10,000,000 (category II), with no detention, after the adjustment by UU 1/2026 (Lampiran I nomor 184). We read this as covering a villa let to guests; the Act does not define tempat penginapan. Pasal 5 also asks every tourism business for a Sertifikat Standar Usaha Pariwisata within a year of verification, except for certain medium-low risk activities that the regulation does not list. We read the annex as pointing to that exemption for these three codes, but that is a reading, not a rule.

The regulations settle who may register as an individual; they do not settle whether a foreign-owned company may run a villa. An individual business actor in OSS must be an Indonesian citizen (Permeninves/BKPM 5/2025 Pasal 23(2); PP 28/2025 Pasal 189(2)), and counts as domestic investment (PMDN). Foreign investment (PMA) must take the form of a limited liability company under Indonesian law, a PT PMA (Pasal 23(11); Perpres 10/2021 Pasal 7(2)).

A PT PMA needs total investment above Rp10 billion per five-digit KBLI code per project location. The general rule leaves out land and buildings, but for short-term and long-term accommodation they count (Pasal 26(2) and (5)); PP 28/2025 Pasal 212(2) still says they are left out, without that exception. Whether item (5)(b) covers the villa codes is not stated. Paid-up capital must be at least Rp2.5 billion (Pasal 26(10)) and stay in the company account for 12 months, except to buy assets, construct buildings and pay operating costs (Pasal 27(1)). BKPM Regulation 4/2021, which older guides cite for these figures, was revoked (Pasal 398 huruf b).

The investment list (Perpres 10/2021 as amended by Perpres 49/2021, in force on the official record on 2 October 2026, with no successor found) allocates five lodging codes to cooperatives and micro, small and medium enterprises (UMKM): 55110 Hotel Bintang 1, 55120 Hotel Melati, 55130 Pondok Wisata, 55199 Guest House and 55193 Vila (Lampiran II no. 48). It limits foreign investors to large businesses above Rp10 billion (Pasal 7(1)). The list uses KBLI 2020, and we found no 2025 version. OSS lists only micro, small and medium scales for these codes and for 55203, 55201 and 55209, and repeats the allocation to UMKM.

What the texts say, exactly: the investment list classes these codes as open fields allocated to cooperatives and UMKM (Perpres 10/2021 Pasal 2(1), 3(1)(b) and 5(1)(a)). It states that the residual category is open to all investors (Pasal 3(2)); it makes no such statement for allocated fields. No text says in terms whether a PMA may use an allocated field. Read together they suggest that these codes are reserved for UMKM, so that a PT PMA, which is a large business, does not fit. That is a reading, not a rule, and we do not conclude whether a foreigner or a PT PMA can run a villa business. A second question is open for domestic projects: one above Rp10 billion including land and buildings is large scale (Pasal 25(5) and (6)), yet the villa rows list no large scale. No text we read resolves this; confirm with OSS or BKPM and a notary.

Supervision follows the same split: the Minister of Tourism supervises PMA tourism businesses outside the special zones, and the kabupaten tourism office supervises PMDN businesses of medium-low risk (Permenpar 6/2025 Pasal 7). We found no text that forbids a foreign individual from owning a villa building as such, but a house a foreigner owns under PP 18/2021 Pasal 71 is limited, among other things, to residential use (Pasal 72 huruf d). The text does not say whether letting it to short-stay guests fits that limit; ask a notary. The tourism texts regulate who may run the lodging business, not who owns the property. Land rights are on the page on leasing.

The building has to be approved for the way it is used. PP 16/2021 decides a building's function by its main activity, the one prioritised in it (Pasal 4(4) and (5)). A dwelling is hunian; a building whose main function is carrying out business, built for that purpose, is usaha (Pasal 5 and 6). A mixed function is possible and must meet the standards of each function (Pasal 4(3) and 7(2)). The function is written in the PBG, the SLF and the building ownership document SBKBG (Pasal 11(1)).

The regulation names neither villa nor pondok wisata. Its elucidation lists detached houses, row houses and flats under hunian, and hotel-type buildings under usaha: wisma, losmen, hostel, motel, rumah kos, hotel and kondotel. It does not say how a house that is both a home and let to guests is classed, or whether short-stay rental changes its main function. As the page on building permits also says, the national text does not draw the line; ask the kabupaten what the PBG and SLF of your villa say.

A change of function obliges the owner to apply for a changed PBG (Pasal 11(2)), and the elucidation counts a change of sub-function. Use that does not match the function in the PBG brings administrative sanctions (Pasal 12(1)): the options include a temporary or permanent stop of use, freezing or revoking the PBG and SLF, and a demolition order. The regulation says they can be imposed, so they are not automatic.

For a business, PBG and SLF are basic requirements obtained through OSS, and the SLF must be held before use (PP 28/2025 Pasal 11(3) and 122(1)). A building that already stands without an IMB or PBG, built before that regulation took effect, may go straight to the SLF application with the licence application (Pasal 123(1)); that is a licensing shortcut, not proof that the construction was lawful. The page on building permits covers the steps and the Bali height and zoning rules.

A villa let to guests owes a regional tax, PBJT on hotel services, on what guests pay. The operator calculates, files and pays it. Hotel services are the provision of accommodation, which may come with food, entertainment or other facilities, and are an object of PBJT (UU 1/2022 Pasal 1 angka 47 and Pasal 50). The statutory list names villa, pondok wisata, guesthouse, bungalow, cottage and glamping, and tempat tinggal pribadi yang difungsikan sebagai hotel, a private residence used as a hotel (Pasal 53(1)). The guest is the tax subject, the seller of the service is the taxpayer, and the tax is self-assessed, with a return (SPTPD) (Pasal 5(2), (4), (5) and Pasal 56).

The base is what the guest pays or, if nothing is paid, the price of similar services in the area (Pasal 57). Each kabupaten or kota sets its rate, capped at 10 percent (Pasal 58(1)).

For houses, the elucidation of the private-residence item says it means a house, apartment or condominium offered as accommodation like a hotel, but not a long-term rental (contract) of more than one month. That carve-out is in the elucidation only, not in the article. On that wording a stay of up to one month is inside the tax and a lease of more than one month is outside that item. The article also excludes government dormitories, residence in hospitals, orphanages, education or religious centres, travel agency services and room rental for businesses inside a hotel (Pasal 53(2)).

Neither UU 1/2022 nor the four Perda below lists rumah kos among hotel services or sets a room threshold. The only rumah kos bands we found (1 to 10, 11 to 20 and over 20 rooms) are in Denpasar's waste-service fee schedule, not in the tax.

PBJT is separate from the national income tax on rent. For land or a building let under a lease, the owner pays a final income tax of 10 percent of the gross rent (PP 34/2017). That does not apply to income from lodging services, and the pages on leasing and on taxes and official costs leave open how it applies to a villa let to guests: ask a tax adviser. We did not analyse it here, nor other national taxes on a villa business.

Bali's tourism regulation requires every accommodation business to hold a Tanda Daftar Usaha Pariwisata (TDUP) and meet the tourism standard (Perda 5/2020 Pasal 11(1)(f) and (5)); the governor's regulation defines the TDUP as the permit issued by OSS. PP 28/2025 says a term with different nomenclature is read in the new nomenclature (Pasal 549 huruf b). Together they suggest that the OSS licence takes the place of the TDUP; no text says so in terms.

A tourism business in Bali that sells to others, online or offline, must register on the Portal Satu Pintu Pariwisata Bali (Perda 5/2020 Pasal 27(1)). Products marketed this way need a tourism licence and a business certificate (Perda 5/2020 Pasal 15(1)). We did not check whether the portal is enforced in 2026.

The tourist levy is owed by the foreign tourist, not the owner: Rp150,000, cashless, under Perda 6/2023 as amended by Perda 2/2025 (in force 1 July 2025); KITAS and KITAP holders and some other visa types are exempt (Pasal 4A and 5(2)). We found no duty on accommodation providers to collect it or check payment vouchers, and no sanction on them, in Perda 6/2023, Perda 2/2025, Pergub 2/2024 or Pergub 25/2025. Pergub 25/2025 Pasal 16(2) says that proof of payment is scanned incidentally at arrival points, endpoints or other places by the relevant local-government bodies and/or service providers (penyedia jasa), a term the regulation does not define; it is not an express duty on owners. Providers otherwise appear only as optional endpoints, by cooperation agreement with the province (Perda 2/2025 Pasal 13A; Pergub 25/2025 Pasal 12(2) and (5)).

Governor's Instruction 5/2025 of 2 December 2025 told the bupati and walikota not to approve conversion of agricultural land, including protected food-crop land (LP2B), to other uses. It concerned farmland, not villas: its text does not mention villas, accommodation or licences, and it was not a moratorium on villa licences. By its own text it ran until a provincial regulation on controlling farmland conversion was issued, and it ended when Perda Bali 4/2026 of 24 February 2026 was issued; the page on leasing covers that Perda. We found no official text that creates a moratorium on new villa licences; a circular of 2010 to 2011 appears only in non-official publications.

APOA (Aplikasi Pelaporan Orang Asing, the Foreign Persons Reporting Application) is the online application of the Directorate General of Immigration, part of the Ministry of Immigration and Corrections (Kemenimipas), through which the owner or manager of a lodging gives the data of foreign guests.

If foreigners stay in your villa, the immigration law gives you a duty. The owner or manager of a lodging must give the data of the foreigners who stay there when an immigration officer or a police officer asks for it (UU 6/2011 Pasal 72(2), as amended by UU 63/2024). The same article lets these officers ask anyone who lets a foreigner stay for that foreigner's data (Pasal 72(1)). The offence in Pasal 117 arises when the data are not given after such a request.

The duty to give the data when an officer asks is in the Act (UU 6/2011 Pasal 72(2)) and in PP 31/2013 Pasal 187(2). PP 31/2013 Pasal 188(2) adds that the data must be handed to an immigration officer for immigration supervision, and does not say that this happens only on request. Neither text sets a deadline. The APOA website nevertheless states that the owner or manager must report the foreigners who stay, and in 2025 the Director of Immigration Supervision and Enforcement said that immigration uses APOA as its platform for these data. The practical way to meet the duty is therefore to register in APOA and enter each foreign guest at check-in and check-out. Press reports mention a deadline of 24 hours; we found it in no official text and state none.

Who it covers: the text says the owner or manager of a lodging (pemilik atau pengurus tempat penginapan). The APOA registration form offers villa, rental house, guest house, homestay, boarding house (indekost), apartment and condominium as types of lodging, and the tooltip on the user type says that all kinds of lodging are meant, including hotel, homestay, airbnb and villa. No legal text we opened mentions booking platforms such as Airbnb or exempts a villa booked through one, so we read a villa let to guests as covered, whichever site the guest booked on. Whether a long lease to a foreigner counts as staying (menginap) the texts do not say; ask the immigration office. If a manager or agent runs the villa, agree in writing who enters the guests.

What data: at least the guest's full name, place and date of birth, sex, telephone number, nationality and passport number (PP 31/2013 Pasal 188(1)). In APOA you scan the passport page with the camera or upload a photo or PDF of it, and check the data the system reads.

How to register: open apoa.imigrasi.go.id, choose Daftar (register) and select your type of lodging. The form for an individual asks for your NIK (Indonesian identity number), name, date of birth, telephone, email and a password, then the postcode, the full address and a pin for the lodging on a map. Register while you are at the property: the pin must be within 2 km of where you are. Confirm the email the system sends. We found no official instruction for an owner who has no NIK; ask the immigration office.

At check-in, sign in, choose Check In, scan the passport and confirm. The application checks the location of your device against the pin, so do this at the property. The system then issues a receipt, the Surat Tanda Terima Pelaporan Orang Asing; keep it. At check-out, sign in, select the guest and choose Check Out.

The penalty for not giving the data after a request is a fine of up to Rp10,000,000 (category II), with no detention, under Pasal 117 as adjusted by UU 1/2026 (Lampiran I nomor 184). Before the adjustment the text threatened detention of up to three months or a fine of up to Rp25,000,000, which the 2025 immigration news item still quotes. The texts we opened name no administrative sanction for the owner for this duty.

Under PP 28/2025 a business that breaches its basic requirements or licence faces a warning, a temporary stop, an administrative fine, police coercive force, and revocation of the licence or of the basic requirements, imposed through OSS according to the compliance found in supervision (Pasal 355). For tourism the steps are a written warning (up to three times), a temporary stop, an administrative fine and/or revocation, step by step or not, with details left to the tourism minister's regulation (Pasal 466 and 467). Permenpar 6/2025 sets, for triggers such as missing the standard or the Sertifikat Standar duty, not submitting reports or doing business under a licence not yet effective, a warning in three stages (30, 15 and 10 working days to comply), a temporary stop (30 working days to comply with the decision; the regulation gives no separate length for the stop itself) and revocation, after which a new application can come at the earliest one year later; an appeal lies within 7 working days (Pasal 12 to 17). That regulation lists no fine although PP 28/2025 does, so whether a fine is available in tourism depends on a further instrument we did not find. We did not check criminal provisions of other statutes for operating without a licence.

Bali's tourism regulation lists administrative sanctions, up to a stop and revocation of the licence and an administrative fine, for other listed breaches; the TDUP and portal duties are not among them (Pasal 35(1) and (2)). Breach of the TDUP and standard duty (Pasal 11(5)), the licence and certificate duty for marketed products (Pasal 15(1)) or the portal registration (Pasal 27) is a criminal offence (Pasal 37(1)). The Perda text threatens detention of up to three months or a fine of up to Rp50,000,000; since UU 1/2026 came into force on 2 January 2026 it is a fine of up to Rp50,000,000 only, with no detention (Pasal IV(2) and (3)). Customary sanctions may also apply (Pasal 37(4)). Pasal 11(5) speaks of the TDUP, which PP 28/2025 replaced; the texts do not show how it is applied now, or to villa owners.

For PBJT, the four Perda impose interest, fines and surcharges. In Badung, failing to file the return, or filing it wrongly through negligence, to the loss of the region is threatened with detention of up to one year or a fine of up to twice the unpaid tax, and intent with prison of up to two years or a fine of up to four times (Pasal 116); a fine of Rp100,000 applies for each late or missing return (Pasal 120). Gianyar has the same fine and criminal ranges (Pasal 74(4) and 90). Both restate UU 1/2022 Pasal 181, which is not in Lampiran I of UU 1/2026, so its Pasal VIII applies the general rules: where detention is threatened together with a fine, the detention is removed (Pasal II(3); Pasal IV(3) for a Perda). The one-year detention for negligence therefore no longer applies. For intent, the fine of up to four times the tax is not converted into a category: UU 1/2026 Pasal II(7) and its elucidation keep fines set as multiples (prison of up to two years or a fine of up to four times the tax). For negligence, the detention is removed, but the text does not settle how a fine set as a multiple of the tax is converted under Pasal II(2) or IV(2); check the current figure with an advocate. Denpasar charges 1 percent a month on the unpaid tax, up to 24 months (Pasal 86(2)). Tabanan leaves interest and fines to a Peraturan Bupati (Pasal 110).

A foreigner who deliberately misuses a stay permit, or does activities that do not match its purpose, faces prison of up to five years and/or a fine of up to Rp200,000,000 (category IV), as does anyone who orders or allows it (UU 6/2011 Pasal 122 huruf a and b, as adjusted by UU 1/2026, Lampiran I nomor 83; the figure of Rp500,000,000 in the older text is replaced). No official text we opened says whether running or owning a rental villa fits a visit visa, a KITAS or another permit. We state no view; ask an immigration adviser.

Under the same Act, an owner or manager of lodging who does not give data on foreign guests when an immigration officer or a police officer asks (Pasal 72(2)) commits an offence under Pasal 117: a fine of up to Rp10,000,000 (category II), with no detention, after the adjustment by UU 1/2026 (Lampiran I nomor 184). Before the adjustment the text threatened detention of up to three months or a fine of up to Rp25,000,000.

Which KBLI code the business uses, in the 2025 numbering, and whether the NIB and the Sertifikat Standar exist, in whose name and for that code. If they date from before 15 June 2026, ask your notary how the code was converted.

Whether the Dokumen Penilaian Mandiri and the Sertifikat Laik Sehat exist, and, for a guesthouse, the periodic activity reports.

Who holds the licence: an Indonesian individual, an Indonesian company or a PT PMA. The texts do not settle whether a PT PMA fits these codes, or how a large domestic project is licensed; ask a notary and OSS or BKPM before you rely on a structure.

The PBG and the SLF, the function written in them, and whether the use matches it. A changed PBG is required when the function changes; the regulation does not say whether short-stay rental changes it, so ask the kabupaten. The shortcut in PP 28/2025 Pasal 123(1) is for the licence; it does not show that the construction was lawful.

Hotel tax: the operator's registration with the revenue office, the returns filed and proof of PBJT payments, with the rate and dates of that area.

If guests may be foreigners, whether the villa is registered in APOA and who enters the foreign guests there, and whether the owner or manager is ready to give data on foreign guests to an immigration or police officer on request (UU 6/2011 Pasal 72(2)); failing to do so is an offence (Pasal 117).

Whether the business has received a warning, a temporary stop or another sanction, and, if it sells online in Bali, whether it is registered on the Portal Satu Pintu Pariwisata Bali.

If a foreigner will manage or work in the villa, ask an immigration adviser whether that fits the stay permit (UU 6/2011 Pasal 122); what the employer must obtain is on the page on working legally in Indonesia. If the plot was farmland, ask for the zoning confirmation and the history of any conversion.