Is Airbnb Legal in Kuala Lumpur? 2026 Rules, Permits & Taxes

Permit required

Yes

Fine for hosting without a permit

Up to RM50,000

Listings showing a permit number

0%

Latest rule change

Dec 15, 2025

Listing figures: AirROI, 12 months to September 2026. A number on a listing doesn't prove the permit or licence is valid, and a missing one doesn't prove there is none.

The rules in brief

Who needs it

Anyone changing the use of a building in Kuala Lumpur to tourist accommodation (Homestay or Airbnb, Class A9). Malaysia has no national short-stay licence, and DBKL said in a reply reported in March 2025 that licence applications for short-term accommodation other than hotels had not been implemented. Its published short-stay procedure for strata buildings works through building by-laws rather than a host licence.^4,5,11,20

Issued by

Commissioner of the City of Kuala Lumpur (Datuk Bandar), through Kuala Lumpur City Hall (DBKL)

Fees

Who qualifies

• Local Plan 2040 must permit Class A9 in the zone: it is not permissible in the residential zones R1 to R4 or Established Residential, permissible with conditions in the City Centre Commercial, Major Commercial and Commercial zones, and permissible in Mixed Development.
• In the commercial zones tourist accommodation is not permissible within residential developments.
• In a strata building the joint management body or management corporation can add by-laws, a deposit, a guest register and insurance requirements.
• A residential land title may need its condition of use changed to commercial with the land office, according to Airbnb's Malaysia hosting guide.

How to apply

1. 1 Check the zone and the Class A9 conditions for the address in the Kuala Lumpur Local Plan 2040 (Volume 1 Part 3, Classes of Use of Land and Buildings).
2. 2 Apply to the Commissioner through DBKL's OSC 3 Plus online system on the planning permission form for a change of use of a building, with the fee in the Second Schedule of the 2025 Rules.
3. 3 In a strata building, also apply to the JMB or management corporation under its short-stay by-laws: application form, security deposit and statutory declaration.

Permit rules

Planning permission for a change of use

A change in the use of a building counts as development under the Act, and an application for planning permission goes to the Commissioner (DBKL) in the prescribed form with the scheduled fee.^4,5,11 In force since June 16, 2025

Planning permission fees

DBKL's schedule charges RM5,000 for each application to change the use of land and RM500 for each application for a temporary change of use of land or a building; fees are not refunded.⁵ In force since June 16, 2025

No DBKL licence for short stays

DBKL told the Taman Seputeh residents association that licence applications for any short-term accommodation other than hotels had not been implemented, according to The Star on 25 March 2025. Hosts therefore have no DBKL host licence to apply for.²⁰

Guest register for the management body

Owners register with the management corporation, tell it before each guest arrives and give it the guest records; the management body sends an updated register of short-stay units to COBKL by the 7th of every month.¹²

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

Airbnb is Class A9 Tourist Accommodation

Kuala Lumpur Local Plan 2040 lists Homestay or Airbnb under Class A9 Tourist Accommodation, alongside hotels, budget hotels and chalets. Every zone then rules the class permissible, permissible with conditions, or not permissible.¹⁰ In force since June 11, 2025

Local Plan 2040 in operation since 11 June 2025

The Datuk Bandar (Commissioner of the City of Kuala Lumpur), with the Minister's approval, adopted the Kuala Lumpur Local Plan 2040 on 5 May 2025; it was gazetted on 28 May 2025 and came into operation on 11 June 2025, replacing the earlier local plan and its alterations.³ In force since June 11, 2025

Not permissible in residential zones

Class A9, which covers Homestay or Airbnb, is not permissible in the residential zones R1, R2, R3 and R4 or in Established Residential, so a house or flat in those zones cannot lawfully be let as tourist accommodation.¹⁰ In force since June 11, 2025

Allowed with conditions in commercial zones

Class A9 is permissible with conditions in the City Centre Commercial, Major Commercial and Commercial zones: the conditions prefer or encourage sites within Transit Planning Zones, Transit Influenced Zones and tourist hotspots.¹⁰ In force since June 11, 2025

Not within residential developments

Even in the commercial zones, tourist accommodation is not permissible within residential developments, so a unit in a residential block cannot be let short-term on the strength of its zone.¹⁰ In force since June 11, 2025

Permissible in Mixed Development zones

Class A9 is permissible in the Mixed Development zone, where the residing components must make up at least 60 percent of the floor area.¹⁰ In force since June 11, 2025

Homestay in traditional villages

Class A9 is permissible with conditions in the Traditional Village zones TV1 and TV2: operation on an appropriate scale, a design in harmony with the village, and no nuisance to the community. The Special Village rules list eight villages where it is allowed, among them Kampung Segambut, Kampung Sg. Penchala, Kampong Bharu and Kampung Datuk Keramat.¹⁰ In force since June 11, 2025

Use must follow the Local Plan

The Federal Territory (Planning) Act 1982 bars anyone from using or permitting the use of a building otherwise than in conformity with the development plan, which for Kuala Lumpur is the Local Plan 2040.⁴

Strata buildings set their own short-stay by-laws

The Commissioner of Buildings Kuala Lumpur (COBKL) publishes a standard operating procedure for short-term accommodation in strata buildings: developers, joint management bodies (JMB) and management corporations (MC) control the activity through additional by-laws under the Strata Management Act 2013.¹²

Owners vote the by-law in by three quarters

A JMB or MC adds short-stay by-laws by special resolution: at least three quarters of the valid votes cast at a general meeting, called with 21 days' notice.¹²

Security deposit of RM5,000 a unit

The standard by-laws let a management corporation require a security deposit of RM5,000 for each unit let short-term, or another sum agreed at the general meeting, held against damage to common property.¹²

Federal Court backs building by-laws on short stays

On 5 October 2020 the Federal Court held in Innab Salil v Verve Suites Mont' Kiara Management Corporation that a management corporation can pass a house rule barring short-term rental, and that short stays booked online are licences, not dealings with a parcel, so such a by-law does not breach section 70(5) of the Strata Management Act.¹⁶ In force since October 5, 2020

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

DBKL checks complaints against the Local Plan

In a written reply to Parliament on 30 July 2025, the Federal Territories Minister said DBKL had received no planning application to change a Taman Seputeh house from a home to an Airbnb, that Local Plan 2040 does not allow Class A9 in that Established Residential zone, and that after a complaint DBKL made several site visits, issued a notice to enter the premises and met the owner on 17 May 2025, who promised to keep it a home. DBKL said it would keep monitoring the house. The reply mentions no fine or compound.¹⁴

Public liability insurance

Under the standard by-laws an owner takes public liability insurance covering the guests and gives the management corporation a copy of the policy.¹²

Guests told to keep the peace

Owners hand guests a copy of the by-laws and tell them not to make noise or cause a nuisance to other residents.¹²

By-law fines up to RM200

A management corporation can fine an owner up to RM200 for breaching the short-stay by-laws, and the fine becomes a debt owed to the corporation.¹²

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.^6,13

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

Planning offence: fine up to RM50,000

Using a building contrary to the development plan is an offence under the Federal Territory (Planning) Act 1982, with a fine of up to RM50,000 and a further fine of up to RM500 for each day the offence continues after conviction. The owner of the land is treated as having permitted the use.⁴

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.
• Approval from the strata management body (JMB or MC) where the home is in a strata building.
• A guest register under the Registration of Guests Act 1965.^1,6,17

• Using a building contrary to the Local Plan 2040: a fine up to RM50,000, plus up to RM500 for each day the offence continues after conviction.⁴
• 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
• 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
• Breaching a strata building's short-stay by-laws: a fine up to RM200 from the management corporation, and the security deposit can be applied to damage.¹²

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

   The Housing and Local Government Minister said the national planning guidelines for short-term rental accommodation were in final review with the Tourism, Arts and Culture Ministry before Cabinet and the National Council for Local Government; no start date is set, and Kuala Lumpur has not adopted them.¹⁹

2. 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

3. 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

4. July 30, 2025
   Tourism deputy minister: guidelines to Cabinet, licensing with local authorities

   The Deputy Minister of Tourism, Arts and Culture told the Dewan Rakyat that the national planning guidelines would go to Cabinet soon, with implementation targeted for the end of 2025, and that a short-term rental could register as tourist accommodation only after its premises get a business licence from the local authority, which also handles enforcement.¹⁵

5. July 30, 2025
   Minister reports DBKL action on an Airbnb complaint

   The Federal Territories Minister told the Dewan Rakyat in a written reply that DBKL had made site visits, issued a notice to enter and met the owner of a Taman Seputeh house reported as an Airbnb, under the Local Plan 2040, which does not allow Class A9 in that Established Residential zone.¹⁴

6. June 16, 2025
   New planning permission application rules

   The Federal Territory (Planning) (Application for Planning Permission) (Federal Territory of Kuala Lumpur) Rules 2025 took effect on 16 June 2025 with a new fee schedule, including RM5,000 for a change of use of land and RM500 for a temporary change of use.⁵

7. June 11, 2025
   Kuala Lumpur Local Plan 2040 in operation

   The Local Plan 2040, gazetted on 28 May 2025, came into operation on 11 June 2025 and lists Homestay or Airbnb as Class A9 Tourist Accommodation, replacing the earlier local plan and its alterations.^3,10

8. 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

9. January 19, 2018
   DBKL asks short-stay hosts to register

   DBKL announced a free online registration for owners and operators renting homes for short stays through platforms such as Airbnb, and said failing to register would be an offence. In a reply reported in March 2025, DBKL said licence applications for short-term accommodation other than hotels had not been implemented.^20,22

Estimate what a Kuala Lumpur home could earn

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. Notification of Adoption of the Draft Local Plan for the Federal Territory of Kuala Lumpur (Kuala Lumpur Local Plan 2040), Federal Government Gazette P.U. (B) 206, 28 May 2025 · Attorney General's Chambers, via Kuala Lumpur City Hall (DBKL)
4. 4. Federal Territory (Planning) Act 1982 (Act 267), online version of updated text of reprint, as at 1 December 2011 · Attorney General's Chambers of Malaysia (Laws of Malaysia)
5. 5. Federal Territory (Planning) (Application for Planning Permission) (Federal Territory of Kuala Lumpur) Rules 2025, P.U. (A) 179, 13 June 2025 · Attorney General's Chambers, via Kuala Lumpur City Hall (DBKL)
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. Registering Business (service tax taxable services) · Royal Malaysian Customs Department (MySST)
9. 9. Service tax background and rates · Royal Malaysian Customs Department (MySST)
10. 10. Kuala Lumpur Local Plan 2040, Volume 1 Part 3: Classes of Use of Land and Buildings 2025 (CULB2025) · Kuala Lumpur City Hall (DBKL)
11. 11. Planning permission form: Kebenaran Perancangan (Menukar Kegunaan Bangunan), OSC 3 Plus Online · Kuala Lumpur City Hall (DBKL)
12. 12. Guidelines (Garis Panduan): SOP for Short-Term Accommodation Activities for Developers/JMB/MC in the Federal Territory of Kuala Lumpur, and COBKL Circular 2015/06 · Kuala Lumpur City Hall (DBKL), Commissioner of Buildings
13. 13. General Guide on Tourism Tax, as at 17 May 2018 · Royal Malaysian Customs Department
14. 14. Written reply to Dewan Rakyat question 32 (Fong Kui Lun, Bukit Bintang), 30 July 2025: Airbnb at Jalan Taman Seputeh 7 · Minister in the Prime Minister's Department (Federal Territories), via the Federal Territories Department (JWP)
15. 15. Dewan Rakyat Hansard, 30 July 2025 (question 8, short-term rental accommodation) · Parliament of Malaysia
16. 16. Innab Salil & Ors v Verve Suites Mont' Kiara Management Corporation [2020] 6 MLRA 244, Federal Court, 5 October 2020 · elaw.my
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. Homestay regulations needed in KL · The Star, 25 March 2025
21. 21. Sleepless nights for weary neighbours · The Star, 22 April 2025
22. 22. DBKL: Register with us if you rent your properties out for short stays · EdgeProp.my, 19 January 2018