Airbnb is requesting the registration of all properties by March 2026 primarily due to sweeping new government regulations in key global regions—specifically the European Union and Bali (Indonesia)—that require platforms to verify the legal status of every listing.
If your properties are in one of these regions, here is why this is happening and what you need to know:
1. The New EU Regulation (EU 2024/1028)
The European Union has passed a harmonized law to manage short-term rentals (STRs).
The Mandate: Every host must obtain a unique registration number from their local or national authority.
Data Sharing: Starting in 2026, Airbnb and other platforms must share monthly booking data (number of nights, number of guests) with the EU.
Consequences: Airbnb is legally required to verify these numbers.
Properties without a valid, displayed registration number will be automatically delisted to avoid massive fines for the platform.
2. The Bali "Clean Up" (March 31, 2026 Deadline)
In Bali, the Indonesian government has set a hard deadline of March 31, 2026, for all villas and apartments.
Licensing Crackdown: Authorities estimate thousands of properties operate without valid permits.
All properties must now have a Business Identification Number (NIB) and a Tourism Standard Certificate (Sertifikat Standar). Tax Compliance: This move is designed to ensure all rentals pay the 10% Hotel & Restaurant Tax (PHR).
Strict Enforcement: The government has signaled it will use "Satpol PP" (local police) to seal properties and has even threatened deportation for foreign owners operating illegally.
3. Updates to Airbnb’s Terms of Service
Airbnb updated its Payments Terms of Service in early 2026.
Identity Verification: Stricter "Know Your Customer" (KYC) requirements.
Local Contracts: For example, users in Mexico will transition to contracting with Airbnb Payments Mexico on March 20, 2026, requiring updated tax and registration info.
The Crackdown on Illegal Bali Villas: Why the "Wild West" Era is Ending
It is refreshing to see the Indonesian government taking a firm stance on the hospitality industry in Bali. For too long, the market has felt a bit like the Wild East, but recent moves suggest the authorities are serious about ensuring every villa and hotel operates with a legitimate license and proper management.
I recently noticed a significant shift while checking our own listings: Airbnb has begun requesting official government registration numbers. Fortunately for us, the process was seamless; since we are fully compliant, a simple click linked our official data to the platform.
However, for a huge portion of the market, this is a major wake-up call.
The Reality of the "Villa Glut"
Around the end of last year, reports surfaced suggesting that as many as 50% of villas in Bali may be operating illegally. These properties often lack the correct building permits (PBG/SLF) or are being managed by entities without the legal authority to rent them out.
This has created a strange paradox in Bali’s economy:
Tourist arrivals are up: Bali is busier than ever.
Occupancy rates are down: Many legal hotels and villas—including our own—saw a 5–10% dip in occupancy last year.
The reason? A massive influx of new supply. Over the last couple of years, we’ve seen a surge of developments, many driven by foreign interests looking for a safe haven. This "shadow inventory" of illegal rentals has diluted the market, siphoning off guests from businesses that actually play by the rules.
Red Flags and "Guaranteed" Returns
I’ve spent the last two years cautioning people about the aggressive marketing tactics used by some of these new developers. Many were (and still are) advertising guaranteed returns of 15% to 20% per annum. If you’re an investor, that should be your first red flag. As we learned from the pandemic, nothing in tourism is ever truly guaranteed. If a company promises high returns regardless of global events, they are likely prioritizing a quick sale over long-term legal stability.
The Tide is Turning
The government isn't just talking; they are taking action. With the opening of new police and immigration offices specifically focused on monitoring these issues, the "tip of the iceberg" is finally being exposed. We’ve already seen the closure of certain foreign-owned complexes, and with Airbnb now requiring official registration, there is nowhere left for illegal operators to hide.
What does this mean for the future? For those of us running legal operations, the outlook is bright. As the government closes down illegal villas, those rentals will naturally flow back to compliant owners. We have the arrivals; we just need a fair, regulated playing field.
Pro-Tips for Potential Buyers: "Let the Buyer Beware"
If you are looking to invest in a Bali villa, do not get caught in the dragnet. Protect your investment by following these two golden rules:
Verify the Permits: Never take a developer's word for it. Demand to see the physical building permit and have a trusted legal professional—in my case, my partner and wife a Licenced Indonesian Notaris—review it to ensure it is authentic and correct for the building type.
Check the Management Structure: To the best of my knowledge, villas must be rented through a legally authorized Indonesian Owned company. We utilize an Indonesian-owned PT. Bali Luxury Villas company, which is the gold standard for compliance.
The Bottom Line
There are bad days ahead for those cutting corners, but great days ahead for those of us committed to doing things the right way. A huge "well done" to the Indonesian federal government and local authorities for protecting the integrity of Bali’s tourism.
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| PT. Bali Luxury Villas |
Are you unsure if your favorite Bali getaway is operating legally? Would you like me to help you draft a checklist of questions to ask a villa manager before you book or buy?
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