Authored by the expert who managed and guided the team behind the Indonesia Property Pack
Yes, the analysis of Bali's property market is included in our pack
This guide covers everything a foreign investor needs to know about renting out residential property in Bali, from legal ownership structures to realistic rental yields and neighborhood-by-neighborhood performance data.
We update this article regularly to reflect the latest regulations, market conditions, and rental performance metrics across Bali's most popular investment zones.
Whether you are considering a long-term rental strategy in Sanur or short-term Airbnb operations in Canggu, you will find practical numbers and compliance steps here.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Bali.
Insights
- Bali's short-term rental market had over 39,000 Airbnb listings in mid-2025, yet virtually none held proper tourism licenses, creating both risk and opportunity for compliant investors entering in 2026.
- Gross rental yields in prime Bali areas like Canggu and Uluwatu range from 8% to 15% for short-term rentals, roughly double what most European or North American markets deliver.
- The March 31, 2026 deadline requires all Bali rentals on platforms like Airbnb to hold a valid NIB (Business Identification Number), or face delisting.
- Foreigners cannot own freehold land in Bali, but PT PMA company structures allow secure property control under HGB titles for up to 80 years.
- Long-term rental vacancy in prime expat zones like Canggu and Seminyak sits around 5% to 8%, meaning landlords typically see less than one month of vacancy per year.
- A one-bedroom villa with pool in Canggu now rents for IDR 12 to 18 million per month (around $750 to $1,130 USD), up 18% from the previous year.
- Bali's hotel occupancy has not kept pace with record tourist arrivals because many visitors now stay in unlicensed villas, prompting stricter enforcement in 2025 and 2026.
- The Badung region (which includes Canggu, Seminyak, and Uluwatu) leads Bali in rental demand, capturing nearly 48% of the island's short-term rental activity.
- Net rental yields after all costs typically fall to 3% to 9% in Bali, depending on whether you operate long-term or short-term and how well you manage operational expenses.
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
Can I legally rent out a property in Bali as a foreigner right now?
Can a foreigner own-and-rent a residential property in Bali in 2026?
As of early 2026, foreigners can legally own and rent out residential property in Bali, but only through specific ownership structures since Indonesian law prohibits direct freehold ownership by non-citizens.
The main legal pathways for foreign property ownership in Bali include leasehold arrangements (Hak Sewa) for 25 to 30 years, Right to Use titles (Hak Pakai) for those with Indonesian residency permits, or ownership through a foreign-owned company called a PT PMA that can hold Right to Build (HGB) titles for up to 80 years.
The single most common limitation foreigners face is that they cannot hold freehold title (Hak Milik) directly, which means any ownership structure involves either time-limited rights or the cost and complexity of establishing and maintaining an Indonesian company.
If you're not a local, you might want to read our guide to foreign property ownership in Bali.
Do I need residency to rent out in Bali right now?
You do not need to be a resident of Indonesia to rent out property in Bali, but you will need proper business registration and tax compliance regardless of where you personally live.
A local tax identification number (NPWP) is effectively required if you want to operate legally, receive properly documented rental income, and comply with Indonesia's rental income tax rules under PPh Final Article 4(2).
While a local Indonesian bank account is not strictly mandatory by law, it is practically essential because tenants, property managers, and platforms typically pay in Indonesian Rupiah, and having a local account simplifies tax documentation and reduces transfer fees.
Managing a rental property in Bali remotely is entirely feasible and common among foreign investors, but you will need a reliable local property manager to handle day-to-day operations, tenant relations, and compliance matters on your behalf.
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What rental strategy makes the most money in Bali in 2026?
Is long-term renting more profitable than short-term in Bali in 2026?
As of early 2026, short-term rentals (Airbnb-style) typically generate higher gross revenue than long-term rentals in Bali's prime tourist areas, but they come with significantly more operational complexity, regulatory requirements, and cost variability.
A well-managed short-term rental villa in Canggu or Uluwatu can generate $30,000 to $50,000 USD (roughly IDR 475 million to 790 million or EUR 28,000 to 47,000) in annual gross revenue, while a comparable long-term rental property might bring in $18,000 to $28,000 USD (IDR 285 million to 445 million or EUR 17,000 to 26,000) per year.
Properties that favor short-term renting in Bali tend to be well-designed villas with pools in high-tourism zones like Berawa, Uluwatu, and central Ubud, where nightly rates can command significant premiums over monthly rent equivalents.
What's the average gross rental yield in Bali in 2026?
As of early 2026, the average gross rental yield for residential properties in Bali ranges from approximately 5% to 12%, depending heavily on location, property type, and whether you operate short-term or long-term.
The realistic gross rental yield range that covers most Bali investment properties spans from about 4% for modest long-term rentals in less touristy areas to 15% for well-managed short-term villas in prime locations like Seminyak or Uluwatu.
Smaller villas (one to two bedrooms) with pools in high-demand areas like Canggu and Uluwatu typically achieve the highest gross rental yields in Bali, often reaching 8% to 15% because their purchase prices are lower relative to their strong nightly rate potential.
By the way, we have much more granular data about rental yields in our property pack about Bali.
What's the realistic net rental yield after costs in Bali in 2026?
As of early 2026, the average net rental yield after all costs for Bali residential properties typically falls between 2.5% and 9%, depending on your rental strategy and how efficiently you manage operations.
The realistic net yield range that most Bali landlords actually experience is around 2.5% to 5% for long-term rentals and 4% to 9% for well-run short-term operations, with exceptional performers occasionally reaching higher.
The three main cost categories that reduce gross yield to net yield specifically in Bali are: property management and cleaning (which runs 15% to 25% of revenue for short-term rentals due to high turnover and guest expectations), maintenance reserves (8% to 12% because Bali's tropical humidity accelerates wear on buildings and pools), and the combined tax and licensing burden (including the 10% PPh Final on rental income plus local tourism taxes for short-term operators).
You might want to check our latest analysis about gross and net rental yields in Bali.
What monthly rent can I get in Bali in 2026?
As of early 2026, typical monthly rents in Bali's prime expat areas run approximately IDR 7 to 12 million ($440 to $750 USD or EUR 410 to 700) for a studio, IDR 12 to 20 million ($750 to $1,250 USD or EUR 700 to 1,170) for a one-bedroom, and IDR 20 to 40 million ($1,250 to $2,500 USD or EUR 1,170 to 2,340) for a two-bedroom apartment or villa.
A realistic entry-level monthly rent for a decent studio in Bali ranges from IDR 5 to 8 million ($315 to $500 USD or EUR 295 to 470) in areas like Sanur or outer Ubud, rising to IDR 10 to 15 million ($625 to $940 USD or EUR 585 to 880) in prime Canggu locations.
A typical one-bedroom apartment or small villa in Bali commands IDR 12 to 18 million ($750 to $1,130 USD or EUR 700 to 1,055) per month in popular areas like Berawa or Seminyak, with prices having increased roughly 18% year-over-year in Canggu specifically.
A two-bedroom villa with pool in Bali's prime zones typically rents for IDR 25 to 50 million ($1,560 to $3,130 USD or EUR 1,460 to 2,920) per month, with family-friendly enclosed villas in Seseh and Pererenan often commanding the higher end of this range.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Bali.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Indonesia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What are the real numbers I should budget for renting out in Bali in 2026?
What's the total "all-in" monthly cost to hold a rental in Bali in 2026?
As of early 2026, the total monthly holding cost for a typical rental property in Bali runs approximately IDR 3 to 8 million ($190 to $500 USD or EUR 175 to 470) for a long-term rental, and IDR 8 to 20 million ($500 to $1,250 USD or EUR 470 to 1,170) for a short-term rental operation, excluding mortgage payments.
The realistic monthly cost range that covers most standard Bali rental properties spans from IDR 2.5 million ($155 USD or EUR 145) for a simple apartment with minimal maintenance to IDR 25 million ($1,560 USD or EUR 1,460) for a fully staffed villa with pool in a premium location.
The single largest cost category for Bali rental properties is typically property management combined with cleaning and turnover expenses, which can consume 15% to 25% of gross revenue for short-term rentals due to Bali's high guest expectations for service, frequent turnovers, and the need for pool and garden maintenance in the tropical climate.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Bali.
What's the typical vacancy rate in Bali in 2026?
As of early 2026, the typical vacancy rate for long-term rental properties in Bali's prime expat zones like Canggu, Seminyak, and Sanur runs approximately 5% to 8%, while less central areas may see 9% to 13% vacancy.
Landlords in Bali should realistically budget for 0.5 to 1.5 months of vacancy per year because even well-located properties experience turnover between tenants, and the expat rental market follows seasonal patterns tied to visa cycles and school calendars.
The main factor that causes vacancy rates to vary across Bali neighborhoods is proximity to the lifestyle amenities that expats and digital nomads prioritize, meaning areas with good cafes, coworking spaces, beaches, and reliable internet (like Berawa or central Ubud) fill faster than more isolated locations.
The highest tenant turnover in Bali typically occurs around March and April when many digital nomads leave before the rainy season intensifies, and again in September and October when some expat families relocate before the school year abroad.
We have a whole part covering the best rental strategies in our pack about buying a property in Bali.
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Where do rentals perform best in Bali in 2026?
Which neighborhoods have the highest long-term demand in Bali in 2026?
As of early 2026, the top three neighborhoods with the highest overall long-term rental demand in Bali are Canggu (including Berawa and Pererenan), Seminyak, and Ubud, driven by their established expat communities, coworking infrastructure, and lifestyle amenities.
Families seeking long-term rentals in Bali concentrate most heavily in Sanur (known for its calm beaches and international schools), Jimbaran (close to good schools and the airport), and Nusa Dua (offering resort-style security and family-friendly beaches).
Students and young budget-conscious renters in Bali gravitate toward Denpasar (particularly Panjer and Renon areas near universities) and Jimbaran (near major campus clusters like Udayana University).
Expats and international professionals with higher budgets show the strongest long-term rental demand in Canggu and Berawa (for the digital nomad scene), Seminyak (for dining and nightlife), and central Ubud and Penestanan (for wellness-focused longer stays).
By the way, we've written a blog article detailing what are the current best areas to invest in property in Bali.
Which neighborhoods have the best yield in Bali in 2026?
As of early 2026, the top three neighborhoods with the best rental yields in Bali are Pererenan (offering strong rates with slightly lower purchase prices than Canggu), Uluwatu and Bingin (commanding premium nightly rates for ocean-view villas), and select wellness-oriented pockets of Ubud (benefiting from long-stay retreat demand).
The estimated gross rental yield range for these top-yielding Bali neighborhoods spans from approximately 8% to 15%, with well-managed short-term villas in Uluwatu sometimes exceeding this range during peak season.
The main characteristic that allows these neighborhoods to achieve higher yields than others in Bali is the favorable ratio between strong rental demand (driven by specific traveler profiles like surfers in Uluwatu or wellness seekers in Ubud) and purchase prices that remain below the premium commanded by more saturated areas like central Seminyak.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Bali.
Where do tenants pay the highest rents in Bali in 2026?
As of early 2026, the top three neighborhoods where tenants pay the highest rents in Bali are ultra-prime Berawa beachfront in Canggu (IDR 40 to 80 million or $2,500 to $5,000 USD or EUR 2,340 to 4,670 per month for premium villas), Seminyak walk-to-beach enclaves, and Uluwatu cliff-view villa zones.
A standard two to three bedroom villa in these premium Bali neighborhoods typically commands monthly rents of IDR 50 to 100 million ($3,130 to $6,250 USD or EUR 2,920 to 5,840), with exceptional properties exceeding these figures.
The characteristic that makes these Bali neighborhoods command the highest rents is not simply beach proximity, but rather the combination of architectural quality, privacy, unobstructed views (ocean or rice field), and walkability to the specific dining and lifestyle scenes that high-budget tenants seek.
The typical tenant profile in Bali's highest-rent neighborhoods includes successful entrepreneurs and executives working remotely, content creators and influencers who value photogenic properties, and wealthy families seeking private villa compounds with staff for extended stays of three to twelve months.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Indonesia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Bali in 2026?
What features increase rent the most in Bali in 2026?
As of early 2026, the top three property features that increase monthly rent the most in Bali are reliable backup power with fiber internet (critical for remote workers), a private pool with proper maintenance included, and mold-resistant construction with good airflow design that handles Bali's humidity without constant air conditioning.
The single most valuable feature in Bali rentals is stable high-speed internet with backup connectivity, which can add a 15% to 25% rent premium because digital nomads and remote workers will not compromise on their ability to work reliably.
One commonly overrated feature that Bali landlords invest in but tenants do not pay much extra for is elaborate traditional Balinese decoration, since most expat tenants prefer clean modern aesthetics and see heavy ornamentation as dust collectors that complicate cleaning.
One affordable upgrade that provides strong return on investment for Bali landlords is installing window screens and improving natural ventilation, which costs relatively little but dramatically improves livability by reducing mosquito issues and air conditioning dependence in the tropical climate.
Do furnished rentals rent faster in Bali in 2026?
As of early 2026, furnished rentals in Bali typically rent two to four weeks faster than unfurnished equivalents because the majority of Bali's rental demand comes from expats, digital nomads, and relocating professionals who want move-in-ready accommodations without the hassle of sourcing furniture locally.
Furnished apartments and villas in Bali command a rent premium of approximately 20% to 40% over unfurnished equivalents, with the premium being highest in areas like Canggu and Seminyak where short-to-medium-term tenants dominate the market.
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How regulated is long-term renting in Bali right now?
Can I freely set rent prices in Bali right now?
Landlords in Bali have essentially complete freedom to set initial rent prices at whatever level the market will bear, as Indonesia does not impose rent control or price caps on residential rentals.
Rent increases during a tenancy in Bali are not regulated by government caps, meaning landlords can propose any increase at renewal time, though most leases fix the rent for the contract period (typically 12 months) and renegotiation happens only when that term expires.
What's the standard lease length in Bali right now?
The standard lease length for residential rentals in Bali is 12 months for expat-oriented properties, with 24-month leases common for families and stable tenants, and shorter 6 to 11 month terms available but typically priced at a monthly premium.
Bali landlords commonly require a security deposit of one to two months' rent (IDR 12 to 40 million or $750 to $2,500 USD or EUR 700 to 2,340 for a typical one-bedroom), with two months being standard for higher-end furnished villas.
Security deposit return rules in Bali are governed by the individual lease contract rather than specific statutory requirements, so landlords should clearly document the property condition at move-in and specify in the contract what deductions can be made for damages beyond normal wear.
We made this infographic to show you how property prices in Indonesia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How does short-term renting really work in Bali in 2026?
Is Airbnb legal in Bali right now?
Airbnb-style short-term rentals are legal in Bali, but only when the property operates with proper business registration, tourism licensing, correct land zoning, and tax compliance, meaning the platform itself is not banned but unlicensed operations effectively are.
Operating a legal short-term rental in Bali requires obtaining a NIB (Business Identification Number) through Indonesia's OSS system, a TDUP (tourism business registration) or Pondok Wisata license depending on your property type, and for foreigners, this typically means establishing a PT PMA company structure.
Bali does not impose a simple annual night limit like some European cities; instead, the regulatory focus is on ensuring properties have the correct permits, zoning approval, and tax registrations, with a March 31, 2026 deadline for all rentals on platforms like Airbnb to hold valid licenses or face delisting.
The most common penalties for operating an unlicensed short-term rental in Bali include forced closure of the business, fines, and in severe cases involving zoning violations or foreign ownership issues, property demolition (as demonstrated by the July 2025 demolition of 48 illegal structures at Bingin Beach in Pecatu).
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Bali.
What's the average short-term occupancy in Bali in 2026?
As of early 2026, the average annual occupancy rate for well-managed short-term rentals in Bali ranges from approximately 55% to 70%, with top-performing properties in prime locations occasionally reaching higher.
The realistic occupancy range that most Bali short-term rentals experience spans from about 40% to 55% for average properties to 70% to 85% for exceptional listings with great reviews, professional photography, and prime locations.
The highest occupancy rates for Bali short-term rentals occur during July and August (European and Australian school holidays), the Christmas and New Year period (late December through early January), and around Easter, when tourism peaks and well-reviewed properties book weeks in advance.
The lowest occupancy rates for Bali short-term rentals typically occur during February and March (the wettest months and post-holiday lull) and again in late October to early November, when tourism softens before the year-end rush.
Finally, please note that you can find much more granular data about this topic in our property pack about Bali.
What's the average nightly rate in Bali in 2026?
As of early 2026, the average nightly rate for short-term rentals in Bali ranges from approximately IDR 900,000 to 2,500,000 ($55 to $155 USD or EUR 52 to 145) for studio and one-bedroom units, and IDR 2,000,000 to 5,000,000 ($125 to $310 USD or EUR 117 to 290) for two to three bedroom villas with pools.
The realistic nightly rate range that covers most Bali short-term listings spans from IDR 600,000 ($37 USD or EUR 35) for basic apartments to IDR 10,000,000+ ($625+ USD or EUR 585+) for luxury design villas in Uluwatu or premium beachfront Seminyak locations.
The typical nightly rate difference between peak season and off-season in Bali is approximately 30% to 50%, meaning a villa that commands IDR 3,000,000 ($190 USD or EUR 175) per night in July might rent for IDR 1,800,000 to 2,100,000 ($115 to $130 USD or EUR 105 to 122) in February.
Is short-term rental supply saturated in Bali in 2026?
As of early 2026, Bali's short-term rental market shows signs of oversupply in certain submarkets, with data indicating that active listings exceeded visitor absorption capacity in 2024 and 2025, though strong overall tourism demand means well-differentiated properties still perform well.
The current trend in Bali shows new villa construction slowing in 2026 after the 2025 oversupply became apparent, which should help demand catch up with supply and stabilize occupancy rates for existing properties over the coming year.
The most oversaturated neighborhoods for short-term rentals in Bali are parts of Canggu (especially for generic one to two bedroom villas without distinctive features) and certain Uluwatu pockets where many similar cliff-view properties compete primarily on views rather than unique experiences.
Neighborhoods in Bali that still have room for new short-term rental supply include Sanur (which has more stable, less "copy-paste" inventory), emerging areas like Seseh and Munggu (benefiting from spillover demand from saturated Canggu), and niche Ubud locations serving retreat and wellness markets.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Bali, we always rely on the strongest methodology we can, and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Government Regulation PP 18/2021 | Indonesia's official national regulation defining land rights for foreigners. | We used it to confirm what ownership structures foreigners can legally use. We anchored our "do I need residency?" answers in this regulation. |
| PP 34/2017 via JDIH BPK | Official legal database entry for rental income tax on land and buildings. | We used it to explain the 10% PPh Final tax treatment on rental income. We cross-checked with tax authority guidance for practical application. |
| Direktorat Jenderal Pajak | Indonesia's tax authority explaining rental income withholding requirements. | We used it to clarify when and how rental income is taxed. We kept the tax section practical based on their guidance. |
| BPS-Statistics Bali Province | Official government statistics for Bali tourism arrivals and accommodation occupancy. | We used it as the demand backbone for short-term rental performance assumptions. We validated occupancy estimates against their official figures. |
| Bali Provincial Regulation Perda 1/2024 | Bali's provincial tax framework published by the regional revenue office. | We used it to describe local taxes that apply to accommodation businesses. We grounded short-term rental compliance requirements in this regulation. |
| OSS Indonesia Licensing Portal | Official government portal for business classification and licensing pathways. | We used it to explain what "Pondok Wisata" licensing means for short-term rentals. We mapped legal business structures to this classification system. |
| Bank Indonesia RPPI Survey | Central bank's official residential property price survey publication. | We used it as the macro anchor for property pricing trends. We kept yield calculations grounded in official price data. |
| Colliers Bali Hotel Market Reports | Global research firm widely used by investors for Bali hospitality benchmarks. | We used it to triangulate accommodation performance metrics. We validated our ADR and occupancy ranges against their professional analysis. |
| Horwath HTL Bali Insights | Recognized hospitality advisory firm with Bali market benchmarks. | We used it to cross-check occupancy and performance trends. We avoided single-source bias by triangulating with their data. |
| Bank Indonesia JISDOR Exchange Rate | Central bank's official foreign exchange reference rate source. | We used it to convert IDR amounts to USD and EUR accurately. We ensured currency conversions reflect real early 2026 rates. |
We have made this infographic to give you a quick and clear snapshot of the property market in Indonesia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
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