is it legal for foreigners to rent out accommodation in bali on sites like airbnb?

Anyone with an interest in Bali, will know that the island has been going through a boom in tourism that past few years or even decades. While most tourists stay in hotels and guest houses, a greater number want to stay in a private villa. It is not surprising then that many foreigners come to Bali and think how wonderful it would be to operate their own small hotel, guest house or villa.

Buying a villa sounds like a great idea. You can enjoy the benefits of having your own place to call “home” in Bali, while being able to rent it out to people and help make some money. Perhaps to offset the expenses of running the villa, or have some extra spending money for your holidays in Bali.

While there has always been several well known internet booking sites for holiday homes and villas, Airbnb’s platform, part of the so-called ‘sharing economy’ has really made it possible for anyone to become an accommodation provider, whether you are renting out a tent in your backyard or 5 star villa.

So is it possible or even legal, for a foreigner to rent out accommodation in Bali on sites like Airbnb? Well, of course it is possible, but like with many things in Indonesia when it comes to running a business, it is not easy (at least for foreigners). This topic is not an easy one to answer and the information should only be used as a basic guide and I can only suggest getting legal help, before making any big decisions. The good news is that the government has never had a problem with Airbnb like in some countries.