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Airbnb Bali: How Foreigners Can Rent Out Their Airbnb Villas Legally

Airbnb Bali: How Foreigners Can Rent Out Their Airbnb Villas Legally Review by tenissa.tjahjono on 25. 6. 2019 Company Registration in Indonesia, Market Research in Indonesia, Work Permit in Indonesia, Product Registration in Indonesia, Local Partner Selection in Indonesia, Trade Mission in Indonesia, Company Formation in Indonesia, Company Establishment in Indonesia, Company Set Up in Indonesia, Payroll Outsourcing in Indonesia, Tax Reporting in Indonesia, Medical Product Registration in Indonesia, Medical Device Registration in Indonesia, Cosmetic Registration in Indonesia, Food Supplement Registration in Indonesia.
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Anyone with an interest in Bali knows that the Airbnb villas available on this island are getting more and more plentiful. In addition, the quality of these Airbnb villas makes Airbnb Bali way better than Airbnb anywhere else in the world.

The growth of the Airbnb villas is no-brainer: Bali has been going through a rapid economic transformation due to the tourism boom over the past decade.

While most visitors stay in the regular hotels and guesthouses, a higher number of them has gradually opted for private Airbnb villas that promise more authentic local experience and serene environment.

What is more, because of the large space of Airbnb villas in Bali, many foreigners will use their villas as venues for other activities such as weddings, birthday parties, or just simply as holiday accommodations for larger groups of family and friends.

The beautiful landscape, warm climate and friendly environment in Bali have attracted 5.7 million foreign visitors in 2017 alone, making the island of the top vacation spots in the world. This has resulted in more and more investors tapping into the Airbnb villas business.

This article provides you with essential information on how you, as a foreigner, can rent out your Airbnb villa in Bali legally.

Can foreigners rent out Airbnb villas?

Though renting out an Airbnb villa in Bali seems to be one of the most common business activities among foreigners, you need to be clear that villa rental in Bali is actually not included in the Indonesian Negative Investment List (NIL).

With that being said, one of the safest ways to start a rental business is by engaging a local nominee company service provider.

What licenses/permits do you need to rent out Airbnb villas?

In general, there are two important licenses/permits you will need when you consider starting a villa business in Bali: accommodation license and building license (Izin Mendirikan Bangunan – IMB).

Accommodation License

Depending on the type of housing and the number of rooms, there are two types of accommodation license: homestay license and hotel license.

If you have an Airbnb villa between 3 to 5 rooms, you will need a homestay license, or Pondok Wisata license; and if you have a property with more than 5 rooms, you will need a full hotel license known as Melati license.

It is worth noting that obtaining a hotel license is not an easy feet due to the stringent requirements set out by the Indonesian government.

Building License

In addition to the accommodation license, a building license or IMB is necessary. Holding an IMB means that you are permitted to build a property for your Airbnb villa rental.

Solution: A Local Nominee Company

airbnb bali local nominee company

In order to rent out your villas legally in Bali as a foreigner, you will need the local operational licenses, and this is when the local nominee company comes into place.

A local nominee company under the “villa” classification is the solution to overcome the restriction of foreign ownership of villa businesses.

Since the nominee company is locally owned, no minimum capital is required. The incorporation process is also much faster and less complicated. This article elaborates the top reasons to use a local nominee company in Bali or other parts of Indonesia.

How Cekindo can Help with Your Airbnb Villa Business in Bali

Our team of professional consultants and legal experts can explain to you in detail regarding our nominee company services. We can also assist you with obtaining the necessary licenses.

For more information, get in touch with us today by filling in the form below or visit us in our office in Badung. Our other offices are also available in Jakarta and Semarang.