National Airbnb rules2026 23 sources cited

Is Airbnb Legal in Malaysia? 2026 Rules, Permits & Taxes

Airbnb is legal in Malaysia but set by councils, not a national licence: Penang requires a council licence from 1 August 2026 (fine up to RM2,000); tourism tax is RM10 per room per night, collected by Airbnb.3

Source: AirROI Reviewed by , Founder @ AirROI Rules checked

From 16 official sources, 2 Airbnb help pages and 5 news reports. Not legal advice.

The short answer

Malaysia Airbnb Rules in Brief

  • No national licence yet: national planning guidelines for councils were in final review on 6 October 2026.
  • Penang: council licence for premises with fewer than five rooms; RM50 to apply, then from RM1,000 for the licence and RM1,800 for the private accommodation fee each year; fine up to RM2,000.
  • Kuala Lumpur: Local Plan 2040 treats Homestay or Airbnb as tourist accommodation, not permitted in residential zones or residential developments.
  • Tourism tax is RM10 per room per night for foreign guests, collected by Airbnb; Malaysians and permanent residents are exempt.

At a glance

Malaysia Airbnb Rules at a Glance

Licence required
Yes
Fine for hosting without a permit
Up to RM30,000
Latest rule change
Aug 21, 2026

The rules in brief

The rules a Malaysia host meets first, each linked to the ordinance, statute or official page it comes from. Details and exceptions follow below.

Malaysia Airbnb Rules at a Glance
TopicRule
PermitPenang requires a council licence3
Who can hostWhat counts as private accommodation in Penang3
WhereResidential and commercial areas only3
Building rulesCondition for use of the building18
Night capNo annual night cap in Penang3
Listing displayDisplay the licence and keep a guest register3
PlatformsAirbnb collects the tourism tax17
SafetyFire, first-aid, water and hygiene duties3
NeighboursNo prohibited activity or nuisance3

Your home

Can You Host an Airbnb in Malaysia? It Depends on the Home

Whether you can host in Malaysia turns on whose home it is and whether you live there.

A house or flat in a residential or commercial area of Penang, let while you are away

Allowed with conditions

A licence from the Penang Island or Seberang Perai council is needed since 1 August 2026 for premises with fewer than five rooms, and any condominium or lease rules apply as well.3,18

A condominium or apartment unit in a residential development in Kuala Lumpur

Not allowed

The Local Plan 2040 does not permit tourist accommodation, which includes Homestay or Airbnb, within residential developments or in the residential zones; building by-laws add their own limits.11,18

A unit in a commercial-zone building, such as a serviced apartment or SOHO

Allowed with conditions

Kuala Lumpur permits tourist accommodation with conditions in its commercial zones, and Penang licenses premises in commercial areas, so the council's conditions and the building's rules decide.3,11

A low-cost, price-controlled or People's Housing Project home in Penang

Not allowed

Penang issues no private accommodation licence for these homes.3

A home you rent from a landlord

Allowed with conditions

Leases and contracts can bar subletting or hosting, so written permission from the landlord is needed before listing.18

Permit

Do You Need a Permit for Airbnb in Malaysia?

Yes. Short-term rental hosts in Malaysia need the Private accommodation licence from the City Council of Penang Island (MBPP) or Seberang Perai City Council (MBSP). It costs RM2,850 in the first year (For premises below 3 rooms in Penang: RM50 application, RM1,000 licence fee and RM1,800 private accommodation fee in the first year, then RM2,800 a year; each renewal application carries the RM50 fee, and each room above 2 adds RM200 a year.) and RM2,800 a year to renew.3

Who needs it
Anyone in Penang who lets premises with fewer than five rooms for stays of up to six consecutive months. Malaysia has no national short-stay licence yet; other councils apply their own business-licence, planning and building rules.3
Issued by
City Council of Penang Island (MBPP) or Seberang Perai City Council (MBSP)
Valid for
Up to three years from issue or renewal; not transferable. The licence fee and the private accommodation fee are paid every year.
Processing
A refusal is notified in writing within seven days of the Council's decision.
Platform checks
The by-laws require the licence to be displayed at the premises; they set no listing-number rule for platforms.

Fees

Fees
FeeAmount
Application (administrative fee)RM50 for each licence application, also charged on each renewal application.MYR 50
Licence fee, below 3 roomsRM1,000 a year for premises below 3 rooms.MYR 1,000
Licence fee, each additional room (up to 2 rooms)RM200 a year for each additional room, up to 2 rooms.MYR 200
Private accommodation feeRM1,800 a year for each private accommodation unit, paid before 10 December each year.MYR 1,800
Notice feeRM5 for each arrears notice the Council issues to a licensee.MYR 5

Who qualifies

  • Premises must be in a residential or commercial area under the development plan and be allowed to operate all year.
  • No licence for government or statutory-body premises, private healthcare or childcare centres, employee or student hostels, or Low Cost, Medium-Low Cost, Price-Controlled and other People's Housing Project homes.
  • The Council may refuse a company not owned by a Malaysian citizen, unsuitable premises, or construction built without Council approval.

How to apply

  1. Apply to the Council for the area (MBPP for Penang Island, MBSP for Seberang Perai) in the way it prescribes, with the RM50 administrative fee.
  2. Supply any further documents the Council asks for; the Council allows at least 60 days, and an application not completed in time is treated as withdrawn.
  3. Pay the annual licence fee once the Council decides to issue the licence.
  4. Display the licence in an easily visible place at the premises.

Permit rules

Penang requires a council licence
Since 1 August 2026 nobody in Penang may run a private accommodation activity without a valid licence from the City Council of Penang Island or the Seberang Perai City Council.3 Applies to: Penang · In force since August 1, 2026
No national licence yet
Malaysia has no national short-stay licence. National planning guidelines for councils were in final review with the Tourism, Arts and Culture Ministry on 6 October 2026, before Cabinet, the National Council for Local Government, and then adoption by states and local authorities.19
Licence term and transfer
A Penang licence lasts up to three years from issue or renewal and cannot be transferred to another person.3 Applies to: Penang · In force since August 1, 2026
Display the licence and keep a guest register
Licensees display the licence in an easily visible place at the premises and keep a guest register with each guest's name, nationality, address, telephone number, check-in and check-out dates and a copy of the passport or identity card.3 Applies to: Penang · In force since August 1, 2026
Airbnb collects the tourism tax
For bookings made from 1 January 2023, Airbnb collects and remits the tourism tax on Malaysian listings, so hosts do not collect it again.17 In force since January 1, 2023

Who can host

Who Can Host an Airbnb in Malaysia, and Where

What counts as private accommodation in Penang
The Penang by-laws cover premises with fewer than five rooms let for payment for up to six consecutive months without a tenancy, which may be booked online or by another channel the licence holder sets.3 Applies to: Penang · In force since August 1, 2026
Residential and commercial areas only
Premises must sit in a residential or commercial area under the development plan and be permitted to operate 365 days a year.3 Applies to: Penang · In force since August 1, 2026
Public and low-cost housing excluded
No licence is issued for government or statutory-body premises, private healthcare or childcare centres, employee or student hostels, or Low Cost, Medium-Low Cost, Price-Controlled and other People's Housing Project homes.3 Applies to: Penang · In force since August 1, 2026
Grounds for refusing a licence
The Council may refuse a licence to a Malaysian company not owned by a Malaysian citizen, to premises unsuitable for private accommodation, and to any construction built without Council approval.3 Applies to: Penang · In force since August 1, 2026
Kuala Lumpur: Airbnb is tourist accommodation
Kuala Lumpur Local Plan 2040 lists Homestay or Airbnb under Class A9 Tourist Accommodation. The class is not permissible in the residential zones R1 to R4 and Established Residential, is permissible with conditions in the commercial zones, and is not permissible within residential developments.11 Applies to: Kuala Lumpur · In force since May 28, 2025
Condition for use of the building
Under the National Land Code 1965 a building must be used as its conditions allow; letting a home as commercial short-stay accommodation may need the State Land Office to change the condition from residential to commercial.18
Leases and condominium rules
Leases, contracts, building regulations, condominium regulations and community rules can bar subletting or hosting, so a landlord's or condominium manager's rules apply on top of any council licence.18

Local rules

Local Rules in Malaysia's 5 Largest Airbnb Markets

National law sets the floor, and local governments add their own limits on top: zones, days of the week, notice to neighbours and local taxes. These are Malaysia's largest Airbnb markets, with the share of each market's listings that display a registration or licence number where AirROI has the data.

The largest markets and how each registers rentals
MarketLocal registration
Kuala Lumpur Wilayah Persekutuan Kuala Lumpur–
George Town PenangRequired
Kota Kinabalu SabahRequired
Ipoh PerakRequired
Shah Alam Selangor–

  1. 1. Kuala Lumpur

    Wilayah Persekutuan Kuala Lumpur

    Kuala Lumpur Local Plan 2040, gazetted on 28 May 2025, lists Homestay or Airbnb under Class A9 Tourist Accommodation. The class is not permissible in the residential zones and is not permitted within residential developments, while commercial zones allow it with conditions.11

    • Homestay or Airbnb is Class A9 Tourist Accommodation in the Local Plan 2040.
    • Not permissible in residential zones R1, R2, R3, R4 and Established Residential.
    • Permissible with conditions in City Centre Commercial, Major Commercial and Commercial zones; permissible in Mixed Development.
    • Tourist accommodation is not permitted within residential developments.

  2. 2. George Town

    Penang

    Penang's Private Accommodation (Penang State Local Authority) By-Laws 2026, in force since 1 August 2026, require a licence from the City Council of Penang Island or the Seberang Perai City Council for premises with fewer than five rooms let for up to six months. Fines reach RM2,000 or one year in prison.3

    • Licence required from MBPP (Penang Island) or MBSP (Seberang Perai) since 1 August 2026.
    • RM50 application, RM1,000 a year below 3 rooms, RM200 for each additional room up to 2, and RM1,800 a year per unit.
    • Residential or commercial areas only; none for low-cost, price-controlled or People's Housing Project homes.
    • Licence valid up to three years; display it and keep a guest register.

  3. 3. Kota Kinabalu

    Sabah

    Kota Kinabalu City Hall (DBKK) treats Airbnb-style stays as Short Term Rental Accommodation (STRA) and tells operators to hold an operating licence under the Kota Kinabalu (Hotel and Lodging Houses) By-Laws 1966. Between 16 and 30 April 2025 it checked 319 hotel and lodging premises and served 207 notices on operators in city-centre commercial buildings.12,23

    • Licence required: STRA or Airbnb operators must declare and obtain an operating licence under the 1966 Hotel and Lodging Houses By-Laws.
    • DBKK's own STRA guidelines have applied since 2 January 2025, under the same by-laws.
    • April 2025 inspections covered 319 premises and produced 207 notices.
    • Operators without a valid licence can face action under the by-laws.

  4. 4. Ipoh

    Perak

    Perak's Hotels Enactment 2023 requires a hotel licence for any premises that lodges people for pay, and its definition names homestays. Ipoh City Council (MBI) takes the applications, and the Perak Hotels Regulations 2024 set a one-year amnesty for unlicensed operators that ended on 30 June 2025.4,5,13,14

    • Hotel licence required for any premises that lodges people for rent; the definition names homestay and paid accommodation.
    • Apply to MBI's licensing department; a Perak council FAQ lists Airbnb among those who register.
    • RM30 application fee; a homestay pays RM200 a year for 0 to 3 rooms plus RM20 for each extra room.
    • RM3 local service charge per room per night from 1 January 2025, collected by the licensee.

  5. 5. Shah Alam

    Selangor

    No specific short-term rental law is in force across Selangor, the state assembly was told in April 2026, so Shah Alam falls under planning permission, local council by-laws and the Strata Management Act 2013. The state is waiting for the federal short-term rental guidelines before it sets its own framework.15,16

    • No Selangor law specific to Airbnb-style rentals is in force statewide (April 2026 written answer).
    • Existing rules apply: planning permission, council by-laws and the Strata Management Act 2013.
    • Local councils can add conditions or bans after judging a site's suitability and its effect on the community.
    • In a strata building, the annual general meeting of the joint management body or management corporation decides whether short stays are allowed.

Operating rules

Operating Rules for Malaysia Short-Term Rentals

No annual night cap in Penang
The by-laws set no yearly night limit: premises allowed to operate all year may be let for 365 days, for stays of up to six consecutive months.3 Applies to: Penang · In force since August 1, 2026
Fire, first-aid, water and hygiene duties
Licensees keep fire-fighting equipment in working order, stairs and exits clear, a first-aid kit, a sufficient water supply and hygienic premises, and make no structural changes without Council approval.3 Applies to: Penang · In force since August 1, 2026
No prohibited activity or nuisance
No one may commit, organise or operate a prohibited activity or a nuisance in private accommodation, and the licensee posts a notice about this in Malay and English.3 Applies to: Penang · In force since August 1, 2026
Suspension, revocation and closure
The Council can suspend a licence for up to 90 days after a breach, revoke it after fraud or a conviction, enter the premises to inspect and close them if a by-law is breached.3 Applies to: Penang · In force since August 1, 2026
Registration of Guests Act 1965
Premises used for lodging must keep a register of guests, and Airbnb's Malaysia guide notes that the Act may reach short-term rental hosts; failing to keep it is punishable by up to one year in prison, a fine up to RM2,000, or both.18
Tourism tax registration for operators
Operators with five or more rooms register for tourism tax with Customs; homestay operators registered with MOTAC and operators with four rooms or fewer are exempt from registering, yet platforms still charge the tax on every booking.6,8
Service tax above RM500,000
Accommodation, including homestays, is a taxable service, and a host registers for service tax once taxable income reaches RM500,000 in 12 months.18

Taxes

How Much Are Airbnb Taxes in Malaysia?

A flat RM10 per room per night tourism tax applies to foreign guests, added by Airbnb at booking; Malaysian citizens and permanent residents pay none.

How Much Are Airbnb Taxes in Malaysia?
TaxRateCollected by
Tourism Tax RM10 per room per night, charged to foreign guests; Malaysian citizens and permanent residents are exemptMYR 10 a night1,17Airbnb
Service tax on accommodation 8% of taxable accommodation charges, only for providers whose taxable services pass RM500,000 in 12 months8%9,10,18Host

What the host still handles

  • Tourism tax with Royal Malaysian Customs (MyTTx) if the operator has five or more rooms; four rooms or fewer and MOTAC-registered homestays are exempt from registering.
  • Service tax with Royal Malaysian Customs (MySST) once taxable services exceed RM500,000 in 12 months.
  • A Penang private accommodation licence (MBPP or MBSP) for premises with fewer than five rooms in Penang.
  • A guest register under the Registration of Guests Act 1965.1,6,17

Fines

How to Avoid Airbnb Fines in Malaysia

Fines in Malaysia fall on hosting without the Private accommodation licence, or outside the rules above. With it in hand and the rules followed, none of the fines below apply.

  • Failing to register for tourism tax as an operator with five or more rooms: a fine up to RM30,000, up to one year in prison, or both.2
  • Breaching the Penang by-laws, including operating without a licence: a fine up to RM2,000, up to one year in prison, or both.3
  • Failing to keep a guest register under the Registration of Guests Act 1965: up to one year in prison, a fine up to RM2,000, or both.18
  • A Penang licence can be suspended for up to 90 days, and the Council can close premises that breach the by-laws.3

Changes

What's Changed in Malaysia's Airbnb Rules

No change was scheduled when the rules were checked on October 17, 2026; the most recent are listed first.

  1. October 6, 2026 Not in force
    National planning guidelines in final review

    The Housing and Local Government Minister said the planning guidelines for short-term rental accommodation were in final review with MOTAC before Cabinet, then the National Council for Local Government.19

  2. August 21, 2026
    Penang gives operators two months to apply

    The state committee chairman said operators have a two-month period to apply for licences.21

  3. August 1, 2026
    Penang private accommodation by-laws in force

    The Private Accommodation (Penang State Local Authority) By-Laws 2026 took effect on 1 August 2026, requiring a council licence for premises with fewer than five rooms.3

  4. December 15, 2025
    Tourism Tax (Rate of Tax) Order 2025

    The order fixes the tourism tax at RM10 per night for each room, for direct and platform bookings.1

  5. December 1, 2025
    Customs Public Ruling on platform tourism tax

    Public Ruling No. 01/2025 states that a platform which receives the guest's payment accounts for the tourism tax, and the operator does not collect it again when the guest can show proof of payment.7

  6. August 19, 2025 Not in force
    National short-stay framework outlined

    The Housing and Local Government Ministry outlined a framework in which short-term rental operators register with the Companies Commission of Malaysia, obtain council permits and licences, register with MOTAC and carry insurance, with online travel agencies checking licences; it needs Cabinet approval and has no start date.20

  7. January 1, 2023
    Airbnb collects tourism tax

    From bookings made on or after 1 January 2023 Airbnb collects and remits the RM10 tourism tax, and hosts stop collecting it.17

Earnings

What Could a Short-Term Rental in Malaysia Earn?

The rules shape the numbers: a licence that costs RM2,850 in the first year. For a specific address, the Airbnb profit calculator estimates revenue, occupancy and nightly rate from comparable listings, so you can test the numbers before applying.

Estimate what a home could earn

FAQ

Malaysia Airbnb Rules: Frequently Asked Questions

Is Airbnb legal in Malaysia?

Yes. Malaysia has no national short-stay licence, and rules are set by councils, state land offices and building managers; Penang has required a council licence since 1 August 2026.3,18,19

Do I need a permit for Airbnb in Malaysia?

There is no national permit yet. In Penang a council licence is required for premises with fewer than five rooms; elsewhere the council's planning rules, the land title conditions and the building's rules apply.3,18,19

How much is the Airbnb licence in Penang?

RM50 to apply, RM1,000 a year for premises below 3 rooms (RM200 for each additional room up to 2), and an RM1,800 annual private accommodation fee for each unit.3

Can I rent out a home I don't live in?

The Penang by-laws license the premises and do not require the host to live there, but the home must be in a residential or commercial area and not in excluded housing. Leases and condominium rules can still bar it.3,18

Does Airbnb collect tourism tax in Malaysia?

Yes. Airbnb collects and remits the tourism tax of RM10 per room per night on bookings made from 1 January 2023, so hosts do not collect it again.1,17

Do Malaysian guests pay the tourism tax?

No. Malaysian citizens and permanent residents are exempt, provided they submit a Malaysian government ID on Airbnb before booking.6,17

What is the fine for running an Airbnb without a licence in Penang?

A fine up to RM2,000, up to one year in prison, or both, and the council can suspend the licence or close the premises.3

Can I list an Airbnb in a condominium?

Building and condominium rules can bar hosting, and Kuala Lumpur's Local Plan 2040 does not permit tourist accommodation within residential developments.11,18

Do I need to keep a guest register?

Penang licensees must keep one with each guest's identity details, and Airbnb's Malaysia guide says the Registration of Guests Act 1965 may apply to hosts, with a fine up to RM2,000 or one year in prison.3,18

Is there a limit on how many nights I can rent?

The Penang by-laws set no yearly night limit and allow operation for 365 days a year, covering stays of up to six consecutive months.3

Do I have to register for service tax?

Only when taxable services reach RM500,000 in 12 months; the general service tax rate since 1 March 2024 is 8%.10,18

Are national short-stay rules coming?

National planning guidelines were in final review with MOTAC on 6 October 2026, before Cabinet and the National Council for Local Government, with no start date announced.19

Method

How These Rules Were Checked

Each rule on this page was checked in October 2026 against the official source cited beside it: the ordinance or statute, the permit office's own pages and the tax authority. Airbnb's help pages are cited on their own only for what Airbnb itself does, such as the taxes it collects and the permit checks it runs, and otherwise only beside an official source; news reports only for when a change was announced. Rules that could not be confirmed on an official page are left out.

Rules change with council votes, court rulings and new state laws, so the page is rechecked every three months and whenever a scheduled change takes effect. It summarizes the rules for information and is not legal advice; the City Council of Penang Island or Seberang Perai City Council has the final word on any application.

Sources

Sources

Each rule above links to the source it comes from. Official ordinances, statutes and government pages come first, then Airbnb's own help pages.

  1. 1. Tourism Tax (Rate of Tax) Order 2025, P.U. (A) 423 · Attorney General's Chambers, via Royal Malaysian Customs Department (MyTTx)
  2. 2. Tourism Tax Act 2017 (Act 791) · Laws of Malaysia, via Royal Malaysian Customs Department (MyTTx)
  3. 3. Private Accommodation (Penang State Local Authority) By-Laws 2026, Warta Kerajaan Negeri Pulau Pinang, 6 August 2026 (P.U. 37) · Penang State Government, published on the Seberang Perai City Council website
  4. 4. Perak Hotels Enactment 2023 (Enakmen Hotel Perak 2023, Enakmen 17), Perak Government Gazette, 20 July 2023 · State Legislative Assembly of Perak, published by the Manjung Municipal Council
  5. 5. Perak Hotels Regulations 2024 (Peraturan-Peraturan Hotel Perak 2024), Pk. P.U. 9, 27 June 2024 · Perak State Government, published by the Manjung Municipal Council
  6. 6. Guide on Tourism Tax (Digital Platform Service Provider), as at 11 March 2025 · Royal Malaysian Customs Department
  7. 7. Public Ruling No. 01/2025: Liability of Operator and Digital Platform Service Provider (DPSP) to Account for Tourism Tax Received · Royal Malaysian Customs Department
  8. 8. General Guide on Tourism Tax, as at 17 May 2018 · Royal Malaysian Customs Department
  9. 9. Registering Business (service tax taxable services) · Royal Malaysian Customs Department (MySST)
  10. 10. Service tax background and rates · Royal Malaysian Customs Department (MySST)
  11. 11. Kuala Lumpur Local Plan 2040, Volume 1 Part 3: Classes of Use of Land and Buildings 2025 (CULB2025) · Kuala Lumpur City Hall (DBKL)
  12. 12. Premis Short Term Rental Accomodation (STRA) atau Air BnB sekitar Bandaraya Kota Kinabalu diarah agar memohon lesen operasi, 6 May 2025 · Kota Kinabalu City Hall (DBKK), Licensing Department
  13. 13. Pelaksanaan Enakmen Hotel Perak 2023 di Majlis Bandaraya Ipoh · Ipoh City Council (MBI)
  14. 14. Soalan lazim (FAQs): Enakmen Hotel dan pelaksanaan Peraturan Hotel 2024, 20 June 2024 · Teluk Intan Municipal Council (MPTI), Perak
  15. 15. Isu Airbnb, written question 341, Selangor State Assembly, April 2026 · Dewan Negeri Selangor
  16. 16. Airbnb, oral question 325, Selangor State Assembly, July 2025 · Dewan Negeri Selangor
  17. 17. Occupancy tax collection and remittance by Airbnb in Malaysia · Airbnb Help Center
  18. 18. Responsible hosting in Malaysia · Airbnb Help Center
  19. 19. Short-term rental guidelines at final review stage, Minister · Media Selangor, 6 October 2026
  20. 20. Airbnb-style operators will soon need permits and insurance · New Straits Times, 19 August 2025
  21. 21. Penang first state to implement private homestay by-law · Bernama, 21 August 2026
  22. 22. Tighten rules on short-term rentals · The Star, 22 November 2025
  23. 23. DBKK kembalikan fi hotel kepada kadar asal tahun 1966, January 2025 · Sabah News, reporting a Kota Kinabalu City Hall (DBKK) statement