Bali - New Rules for Accounting Foreign Guests

Bali tightens control over rental properties for foreign tourists

The island of Bali, one of the most popular tourist destinations in the world, has decided to tighten control over the rental of real estate for foreign guests. The island's authorities have obliged landlords to register all foreigners staying with them in order to improve the accounting of visitors and combat violations related to tourism activities. Vice Governor of Bali Tjokorda Oka Artha Ardana Sukawati announced the introduction of new rules for owners of tourist properties. Now they must:

1. Register the details of all foreigners staying with them, including passport and visa information.
2. Submit reports to local authorities on the stay of foreign guests.
3. Comply with all tax and legal requirements related to rental income.

The control over the implementation of these rules is entrusted to local administrations, which will conduct regular inspections. In addition, municipal authorities are actively introducing digital systems to collect and synchronize data on foreign tourists with an electronic visa database. The Vice Governor emphasized that the purpose of the innovations is not to hinder the influx of tourists, but to create a more organized and safe housing rental system. The authorities are striving to make the island's tourism industry as transparent and legal as possible.

Reasons for changes in legislation

The main reasons for introducing the new rules are to combat illegal rental of real estate and related violations of the law and budget losses. Previously, many rental transactions were not properly monitored, which led to various problems:

1. Evasion of taxes on rental income.
2. Disputes between landlords and tenants due to the lack of clear rental conditions.
3. Difficulties with visa control due to the lack of registration of guests.

The new rules are designed to solve these problems and make the rental market more transparent and regulated. In addition, this will increase the confidence of tourists, who will feel more secure when staying in officially registered properties.

Impact of the changes on the Bali rental market

The changes are expected to have a significant impact on the short-term rental market in Bali. On the one hand, landlords will have to bear additional costs for record keeping and potentially pay more taxes, which may lead to some increase in prices for tourist accommodation. On the other hand, simplification and transparency of transactions will likely increase confidence among tenants and contribute to the growth of the legal rental market. In addition, the new rules may lead to the following changes:

1. Reduced competition from illegal landlords who will not be able to continue their activities under the new conditions.
2. Increase in the number of registered properties and, as a result, an increase in income from legal rentals.
3. Improved quality of services and safety for tourists, which will positively affect the image of Bali as a tourist destination.

Recommendations for landlords in Bali

If you are planning to rent out property in Bali, you need to consider the following points:

1. Compliance with all legal procedures and requirements, including registration of foreign guests.
2. Maintaining clear documentation and paying taxes (11% of rental income from villas and apartments).
3. Cooperation with professional management companies that will take on the tasks of finding tenants, registering and complying with new rules.
4. Ensuring high quality services and safety for guests, which will have a positive impact on the reputation and profitability of the business.

In conclusion, the introduction of new rules for rental properties in Bali is an important development that will have a significant impact on the development of tourism on the island. Although these changes may cause some temporary difficulties for landlords and tourists, in the long run they will benefit all stakeholders. Increasing transparency and legality in the rental sector will help Bali maintain its attractiveness as a tourist destination, ensure fair conditions for businesses and improve the quality of services for visitors to the island. In addition, it will contribute to a more sustainable and responsible development of tourism, taking into account the interests of local residents and the environment. If you are planning to visit Bali or invest in real estate on the island, be sure to consider the new rules and consult with professionals in this field. This will help you make informed decisions and make the most of the enormous potential that this amazing island offers.