Can Tourists Sublet a Rented Villa in Bali?

No, not if you entered on a visit visa. Re-letting a villa you rent through Airbnb, Booking.com or a Facebook group is a business activity, and a foreigner whose activities go beyond the purpose of their stay permit can be deported (Article 75 of Law No. 6 of 2011 on Immigration) or jailed for up to 5 years and fined Rp500 million (Article 122(a)). On the contract side, Article 1559 of the Indonesian Civil Code bars a tenant from subletting without the owner's permission (checked 29 October 2026).

Why it is being watched

At a Bali provincial parliament plenary on 14 August 2025, Governor Wayan Koster said Tourism Ministry data showed thousands of foreign-owned villas and houses being rented directly to tourists from the owners' home countries, draining local hotel and restaurant tax. He set up five joint task forces, one of them dedicated to villas and houses rented to foreign tourists (Kompas.com, 16 August 2025). On 12 September 2026, Koster led the demolition of a villa in the Pejarakan village forest, Gerokgak, Buleleng, suspected of being funded by a foreigner in a local resident's name (ANTARA Bali, 13 September 2026).

We found no reported case of a tourist deported specifically for subletting a rented villa. The enforcement in the news targets owners and operators. The legal basis is the same, though: earning business income in Indonesia on a tourist visa is a misuse of your stay permit.

Common questions

What if the owner agrees? The owner's consent only settles the civil contract. Paid accommodation still needs a business licence (an NIB through the OSS system, now governed by Government Regulation No. 28 of 2025 on risk-based licensing) and must collect hotel service tax (PBJT, usually 10%). The safe route is for the owner or a licensed manager to list it under their own name, with no share of the income going to you.

What about splitting the rent with friends? Sharing the cost with friends who stay with you, with no listing and no new paying guests, is not the same as running an accommodation business. Make sure the manager reports every foreign guest, as the reporting rule requires.

I rent for a year and fly home for two months. Can I let it while it is empty? That is still subletting. Ask the owner to rent it out and negotiate a reduction on your lease, rather than managing guests yourself.

Practical risks beyond the criminal law

• The lease can be terminated and the deposit kept if the owner finds your listing.
• In many villages the neighbourhood head, the banjar and the pecalang keep track of villa occupants; guests changing every few days get noticed fast.
• If a guest of yours is injured or damages the villa, no licence or insurance protects you.

Related reading: the rule on reporting foreign guests at villas, whether foreigners can buy land or a villa, the limits on remote work with a tourist visa, and Bali rules for visitors.

Short FAQ

Does the digital nomad visa (E33G) allow it? No. E33G is for remote workers whose income comes from an employer outside Indonesia, not from a business inside the country.

So how do foreigners run a villa business legally? Through a foreign-owned company (PT PMA) with an accommodation licence and the right investor or work KITAS. BKPM Regulation No. 4 of 2021 sets PMA investment above Rp10 billion per business line per location, excluding land and buildings; check the current figure on OSS before deciding.