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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.

3 Active 2 Restricted 1 Banned 1 Pending

Malaysia Airbnb & Vacation Rental Regulation Overview

The short-term rental regulatory landscape in Malaysia encompasses 7 tracked jurisdictions: 3 with active regulations, 2 with restrictions, 1 where STRs are banned, 1 with pending legislation. Hosts operating on platforms like Airbnb, VRBO, and Booking.com should verify local requirements before listing, as rules vary significantly between cities and regions.

Approximately 71% of 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 6 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.

Notable jurisdictions where short-term rentals are currently banned or heavily restricted include Penang Island. Hosts should check these listings for details on specific prohibitions and any exceptions that may apply.

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.

Penang IslandPenang
MBPP guidelines used as reference by JMBs/MCs; commercial buildings need ~75% resident approval
Banned
Kota KinabaluSabah
Banned in all residential-titled properties. Only allowed in commercial-titled properties (SOHO, suites) subject to approval by the building's Joint Management …
Restricted
SelangorSelangor
Operators exceeding 180-night cap may need special planning permission; plans not yet fully formalised
Restricted
Kuala LumpurFederal Territory
Strata by-laws are decisive: Management Corporations/Joint Management Bodies can prohibit STR via house rules. Federal Court (Innab Salil v Verve Suites) upheld…
Active
LangkawiKedah
Langkawi/Kedah currently operates in a low-regulation STR environment. There is no state-level equivalent to Penang's MBPP STA Guidelines or Selangor's proposed…
Active
Nationwide
Strata by-laws can restrict/ban STR via special resolution; check land title and house rules
Active
PenangPenang
Unknown
Pending