Renting out a villa or condo while you live abroad

If you own a villa on Bali or a condo in Phuket and live somewhere else, someone else checks the guests in, pays the staff and deals with the authorities, and you read a statement once a month. Local rules decide which rentals are legal, so read them before you choose a manager.

Which rental model suits an owner who lives abroad?

You can lease the property to one tenant for months or years, or let it by the night to tourists through a manager.

A long lease is simpler. In Thailand, the Hotel Act does not cover accommodation that is charged monthly or for a longer period. In Indonesia, rent is taxed under Government Regulation 34/2017 at a final 10% of the gross amount, and a tenant that is an Indonesian company withholds it before paying. For an owner who lives abroad the rate can be different. The tax office lists rent among the payments to foreign taxpayers that are taxed at 20% of the gross amount or at a tax treaty rate, and the tax publication Ortax concludes that villa rent on Bali paid to a foreign taxpayer without a permanent establishment in Indonesia falls under that rule, not the 10% one. Ask a tax adviser which rate applies to you. An agent who finds the tenant typically charges 5% to 8% of the lease value, according to the law firm SSEK.

Nightly rentals need a licence in both countries, and the rules on who can hold one are strict.

Can I rent out a Bali villa by the night in my own name?

Not as a private foreigner. Indonesia’s investment law requires foreign investment to take the form of a limited liability company under Indonesian law, known as a PT PMA. Since 2025 the minimum paid-up capital of such a company has been Rp 2.5 billion, according to HBT Law.

On Bali a PT PMA may not be enough either. On 1 October 2026 the head of Bali’s investment and licensing office told detikBali that foreign-owned companies on Bali may not use the villa business code, because the province gives priority to small local businesses in that sector. He added that many foreign companies register under real estate code 6811 and then let the finished buildings by the day, and the province is looking into it.

So the workable route is a local operator that holds the licence. Ask which company it is before you sign.

What does a licensed rental on Bali look like?

A business registers through OSS, the government’s online licensing system. It receives a business identification number (NIB) and registers each activity under a business code (KBLI). If an activity needs supporting permits, called PB-UMKU, the business applies for them in OSS under the same code.

In May 2026 the Ministry of Tourism said booking platforms will ask hosts for the NIB, the KBLI code and the business activity number, and check them against OSS. The ministry counted about 1,600 unlicensed businesses selling through the platforms and planned to send the list to the platforms on 1 August 2026. Businesses that got licensed within two months could stay listed. Nationwide, the number of villa businesses registered with an NIB grew by 76.4% between 31 March 2025 and 20 May 2026.

A real estate code is not a rental licence. A ministry official said that many villa owners on Bali use KBLI 68111, which covers real estate, and that running a villa for guests requires the villa code 55193 and a change to the company deed.

The building’s function is written into its PBG building approval, and a change of function needs a new approval, so a house approved as a home is not automatically a guest villa. Badung, the regency that includes Canggu, charges a 10% tax on hotel services, and its tax rules list villas and private homes used as hotels. The owner or manager of any lodging must also give immigration officers information about foreign guests when asked. Immigration uses the APOA app for this, and ignoring the duty can bring up to three months’ detention or a fine of up to Rp 25 million.

Can I rent out a Phuket condo on Airbnb?

Not by the night. Thailand’s Hotel Act defines a hotel as accommodation set up as a business to give travellers temporary lodging for payment, and it excludes accommodation charged monthly or for longer. Running one without a licence can bring up to one year in prison, a fine of up to 20,000 baht, or both, plus up to 10,000 baht a day while it continues.

A condo unit cannot get that licence. In November 2023 the Department of Lands told provincial governors that condominium units may not be used for hotel operations, even with the consent of the other co-owners, Tilleke & Gibbins reported. For a building to operate as a hotel, its condominium registration has to be cancelled first.

The authorities say they will enforce this. After complaints about daily rentals in Bangkok, a parliamentary committee and officials said violators would face legal action, that platforms would be asked to remove daily rental ads, and that a condominium’s juristic person that knows about such rentals may also be liable, the Bangkok Post reported. The paper also pointed to the Immigration Act, which requires a foreign guest’s name to be reported within 24 hours.

For a condo, that leaves rentals of a month or longer. If you let three or more residential units, Thailand’s 2025 consumer protection rules on residential leases also apply, with required contract terms and invoices sent at least three days before payment is due.

What about a villa in Phuket?

A small property can work without a hotel licence. Since late October 2023, accommodation with no more than 8 rooms and no more than 30 guests falls outside the definition of a hotel. It still has to be registered with the official registrar, the registration is valid for 5 years, and only Thai nationals may register such a business, according to PKF Thailand. A larger one needs a hotel licence, so a foreign owner is left with monthly leases or a licensed operator.

What should the management contract say?

Put these points in writing:

which company holds the licence, its number, and what happens to your bookings if it loses it;
who reports foreign guests to immigration;
who files and pays the hotel tax and the tax on your rental income, and in whose name;
which account the money goes to, in what currency, and on which date you are paid;
a monthly statement with every booking, every platform commission and every expense, plus read-only access to the booking calendar;
what the manager may spend without asking you;
how either side can end the contract, on what notice, and who keeps the listing and its reviews.

The last point matters. Airbnb cannot move bookings from one account to another or hand an account to a different host, and reviews stay on the profile of the listing’s owner. If the listing sits in the manager’s account, the reviews leave with the manager.

FAQ

Is a monthly rental in Phuket legal without a hotel licence?

The Hotel Act excludes accommodation charged monthly or for a longer period. Read the building’s own regulations too, since most condominium regulations prohibit daily rentals, the Bangkok Post noted.

Can my Bali listing disappear if the manager has no licence?

It can. The Ministry of Tourism said it would send the platforms lists of unlicensed businesses, and the platforms are to suspend their sales within two months of the ministry’s notice.

Does a long-term lease need a licence?

In Phuket, a lease charged monthly or for longer falls outside the Hotel Act. In Indonesia, rent carries the 10% final tax, or the 20% foreign taxpayer rate described above if you live abroad.

Licensing rules changed between 2023 and 2026; the figures above are as of October 2026. Have a local lawyer check the licence and the contract before you sign.

Sunny Development Group builds on Bali and in Phuket, and rentals in its projects are run by its own management company or by partner companies. The company counts its time on the market from 2011.