Malaysia Airbnb & Short-Term Rental Regulations 2026

LawfulStay tracks short-term rental (STR / Airbnb / Vrbo / holiday let / vacation rental) regulations for 7 cities and regions in Malaysia. Select a location below for current permit requirements, tax obligations, and compliance details.

2 Active 2 Conditional 3 Restricted

Malaysia at a glance

Places tracked
7 places: 2 active, 2 conditional, 3 restricted
Licence or registration
Required in 5 of 6 places
Tax on stays
Applies in all 6 places
National law
No single federal STR law; legality determined by local council zoning and strata by-laws. National rules ›

Malaysia short-term rental questions

Are short-term rentals legal in Malaysia?

In all 7 places we track in Malaysia, short-term rentals are allowed, 5 of them with permit conditions or limits.

Do I need a licence for a short-term rental in Malaysia?

5 of 6 places we track in Malaysia require a licence, permit or registration. Check your city's page for its rules.

Is there a national short-term rental law in Malaysia?

No single federal STR law; legality determined by local council zoning and strata by-laws.

Which places in Malaysia have the strictest rules?

On our records: Penang Island, Kota Kinabalu, Penang.

Malaysia Airbnb & Vacation Rental Regulation Overview

The short-term rental regulatory landscape in Malaysia encompasses 7 tracked jurisdictions: 2 with active regulations, 2 where rentals are allowed with conditions, 3 with restrictions. Hosts operating on platforms like Airbnb, VRBO, and Booking.com should verify local requirements before listing, as rules vary significantly between cities and regions.

6 of 7 tracked jurisdictions in Malaysia require some form of permit, license, or registration for short-term rental operations. Requirements range from simple online registration to comprehensive permit applications with inspections.

Tax obligations apply in 7 of 7 jurisdictions. Common taxes include occupancy taxes, tourist levies, and sales taxes. Many jurisdictions require hosts to register for tax collection, and some platforms like Airbnb collect and remit taxes automatically in select locations.

Cities with significant restrictions on vacation rentals include Penang Island, Kota Kinabalu, Penang. These jurisdictions typically impose permit caps, zoning limitations, or primary residence requirements.

LawfulStay monitors Malaysia STR regulations daily and updates this page as rules change. Each city page includes detailed permit requirements, fee schedules, tax rates, zoning rules, and penalty information sourced from official government websites.

Kota KinabaluSabah
Banned in residential-titled blocks + JMB building bylaws approval required
Restricted
PenangPenang
Penang requires a council licence for every short-term rental since 1 August 2026
Restricted
Penang IslandPenang
Short-term rentals are legal on Penang Island with an MBPP licence in general residential and business zones, but banned in all strata residential properties and in listed neighbourhoods
Restricted
LangkawiKedah
Langkawi's special economic/duty-free zone status (Langkawi Development Authority: LADA) may create additional layers of consideration for business registration and tax
Conditional
SelangorSelangor
Selangor at forefront of state-level STRA regulation; publicly floated 180-night annual cap
Conditional
Kuala LumpurFederal Territory
No specific law outright bans Airbnb in KL; market operates in a transitional, mixed regulatory environment governed by local councils and strata bylaws
Active
Malaysia (nationwide)
No single federal STR law; legality determined by local council zoning and strata by-laws
Active