Plan to invest in Bali? After reading our last article regarding leasehold or freehold, you may start to do your research. Beside the location wise, the question probably will be:

“how and when you can start put your villa in the market?”

If you do your general research already, you probably heard about “Pondok Wisata”. You probably know how important this license is.

A Pondok Wisata is a license which allows you to rent out a small property or homestay. A Pondok Wisata is a type of building permit for commercial use required in Bali to operate villas as vacation rentals. This license covers up to 3 bedrooms (for older licenses) or up to 5 bedrooms (for newer licenses). For anything bigger than that, it would require a full hotel license.

Can a foreigner apply for a Pondok Wisata License?

This License can only be under the name of an Indonesian Citizen, or managed by a PT Company with scope for business Villa Management. 

Issuing the Pondok Wisata licence has a duration of 5 years, after which it will need to extend. You will also need to file taxes for the property but this may vary between being monthly or annually. It dependent upon the requirements of the local tax authorities in your village. If the property does not generate any income, you will still need to file the appropriate taxation documents.

For an Indonesian; you can obtain a guesthouse license without setting up a business.

For a foreigner; he/she must set up a business (PMA) in order to request a guesthouse license.

Can a foreigner run a guesthouse as a private entity?

As mentioned above, a foreigner must set up a business (PMA) in order to request a guesthouse license.

In order to do this, the foreigner can get the guesthouse license by making an agreement with an Indonesian national who will be appointed as the Nominee. In this case it is always the property owner, whose name will be used to acquire the Pondok Wisata License.

Note: It is issued to the owner of the property and is only available to Indonesian citizens. If you have purchased your land rights with an Indonesian partner, it is their name that must go on the Pondok Wisata.

How to apply for a Pondok Wisata:

To process the “Usaha Pondok Wisata“ there are 5 documents which need to be submitted by the Owner of the villa:

1. Document of UKL – UPL: (Environmental Management and Environmental Monitoring Effort Effort / Management System and Monitoring for Environment)
2. Document IMB (Change of the Function)
3. Document  of SITU / HO: (Disruption Dispensation Permit) 
4. Document of Tanda Daftar Perusahaan (Business  License) 
5. NPWPD Number (Tax Number)

The time period to process the “Usaha Pondok Wisata“  will be between 6 months up to 1 year.

For more information regarding the legal adviser, kindly contact us. We partner with a reputable legal advisor to help you to set up PT/PMA and help your investment journey.