What hidden costs surprise first time Bali buyers?

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

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Bali. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Indonesian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Denpasar, Ubud, and Canggu. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Fact-checked and reviewed by our local expert

✓✓✓

Daniel Rouquette 🇫🇷

CEO & Co-Founder at Villa Finder

Daniel Rouquette is very knowledgeable about the Bali villa market, as Villa Finder offers a vast selection of properties across the island. As the CEO and Co-Founder of Villa Finder, he has been leading the company since 2012, providing high-quality villa rentals and personalized concierge services. With over 4,000 villas in 28 destinations, Villa Finder has become a trusted name in luxury short-term rentals in the Asia-Pacific region.

What are the typical notary fees when purchasing property in Bali?

Notary fees in Bali range from 1% to 2.5% of the property value as of September 2025.

For higher-value properties above IDR 3 billion, experienced notaries may negotiate fees down to 0.5% to 1% of the property value. The notary fee covers essential services including document authentication, deed drafting, certificate verification, and basic legal due diligence.

For a typical villa valued at IDR 2 billion (approximately $130,000 USD), buyers should budget between IDR 20 million and IDR 50 million for notary services. This represents one of the most significant upfront costs in the Bali property acquisition process.

The notary (PPAT - Pejabat Pembuat Akta Tanah) plays a crucial role in Indonesian property transactions, handling the legal transfer process and ensuring all documentation meets government requirements.

It's something we develop in our Indonesia property pack.

How much should I budget for annual property taxes in Bali?

All Bali property owners pay the annual Land and Building Tax (Pajak Bumi dan Bangunan or PBB), calculated at 0.3% to 0.5% of the government-assessed property value.

The tax rate can reach up to 1% in certain premium locations or for commercial properties. The government assessment (NJOP - Nilai Jual Objek Pajak) is typically lower than market value, making the actual tax burden more manageable than the percentage suggests.

For most residential villas in popular areas like Canggu or Ubud, annual PBB typically ranges from IDR 1 million to IDR 11 million per year. Luxury properties in prime beachfront locations may face higher assessments and correspondingly higher tax bills.

Property tax bills are issued annually by the local tax office (Kantor Pelayanan Pajak), and payments can be made at designated banks or online through official government portals. Late payments incur penalties and interest charges.

What does it cost to transfer ownership or register a leasehold in Bali?

The ownership transfer process involves a registration fee (Bea Balik Nama or BBN) of approximately 2% of the transaction value.

This registration fee is separate from and additional to the notary fees mentioned earlier. The BBN covers the official government processing of the sale and purchase deed (Akta Jual Beli) and title transfer at the land office (BPN - Badan Pertanahan Nasional).

For leasehold registrations, the same 2% BBN applies to the lease value. The entire transfer and registration process typically takes 1 to 3 months, depending on the complexity of the transaction and the efficiency of the local land office.

Additional costs may include administrative fees for document copies, stamps, and courier services, typically totaling IDR 1-3 million in miscellaneous expenses.

What additional legal costs do foreign buyers face for ownership structuring?

Foreign buyers incur substantial additional legal fees ranging from IDR 30 million to over IDR 100 million for ownership structuring.

Ownership Structure	Setup Cost Range	Complexity Level
Nominee Agreement	IDR 15-30 million	Low
Leasehold (25-30 years)	IDR 20-40 million	Medium
PT PMA Company Setup	IDR 40-80 million	High
Complex Trust Structure	IDR 80-150 million	Very High
Annual Company Maintenance	IDR 15-25 million	Ongoing

PT PMA (Foreign Investment Company) setup includes company registration, tax registration, investment permits, and ongoing compliance requirements. Many foreign buyers choose this structure for larger investments or multiple properties.

Nominee arrangements, while less expensive initially, carry higher long-term risks and may require additional legal safeguards that increase costs. Professional legal advice is essential given the complexity of Indonesian property law for foreigners.

Are there hidden costs in property due diligence and verification?

Due diligence costs are typically bundled into notary fees but can include additional charges for complex property histories or verification requirements.

Standard certificate checks cost around IDR 100,000 to IDR 500,000 per certificate, while comprehensive due diligence for properties with complicated ownership histories can add IDR 2-10 million to total costs. Building permit verification (IMB/SLF) for older properties often requires additional investigation.

Properties lacking proper building permits may require expensive legalization processes, potentially costing tens of millions of rupiah. Zoning compliance checks are particularly important for properties in rapidly developing areas where regulations have changed.

Soil testing, structural inspections, and environmental assessments are not standard but may be necessary for certain properties, adding IDR 5-15 million in professional fees.

How do agent commissions in Bali compare to other markets?

Real estate agent commissions in Bali typically range from 3% to 5% of the sale price, usually paid by the seller.

This rate is comparable to or slightly higher than many Western markets where 2% to 5% is standard. In some cases, particularly for luxury properties or complex transactions, commissions may be split between buyer and seller agents.

International real estate agencies often charge premium rates of 4-6% due to their marketing reach and bilingual services. Local Indonesian agents may offer lower rates of 2-3% but might provide limited international exposure.

Exclusive listing agreements may offer reduced commission rates, while open listings typically command full commission rates. Buyers should clarify commission structures upfront to avoid surprises at closing.

What are the actual utility costs for new property owners in Bali?

Utility costs in Bali are generally reasonable but can vary significantly based on property size and usage patterns.

Electricity costs typically range from IDR 1 million to IDR 3 million per month for a standard villa, with air conditioning and pool pumps being the primary drivers of higher bills. PLN (state electricity company) rates are subsidized for residential use, making electricity relatively affordable.

Water costs are usually under IDR 1 million per month for most residential properties, as municipal water (PDAM) rates remain low. Private well water requires pump maintenance and occasional testing, adding IDR 200,000-500,000 monthly.

Internet packages range from IDR 300,000 to IDR 1.5 million per month depending on speed and reliability requirements. Fiber optic connections in popular expatriate areas offer reliable high-speed internet, while remote locations may rely on more expensive satellite or cellular options.

It's something we develop in our Indonesia property pack.

What ongoing maintenance and community fees should I expect?

Villas in managed complexes or private estates typically charge monthly maintenance fees ranging from IDR 1 million to IDR 5 million.

These fees cover essential services including 24/7 security, gardening, pool maintenance, waste collection, and common area upkeep. Premium developments with extensive amenities may charge higher fees of IDR 7-10 million monthly.

Some developments structure fees as annual lump sums rather than monthly payments, which may offer slight discounts but require larger cash outlays. Individual standalone villas require private arrangements for security, gardening, and maintenance services.

Community association fees in residential complexes also cover road maintenance, drainage systems, and shared utility costs. These mandatory fees are separate from individual property maintenance and cannot be avoided.

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 surprise renovation and code compliance costs arise?

Renovation costs often exceed initial budgets due to building permit requirements and code compliance issues.

Older properties frequently lack valid building permits (IMB/SLF), requiring expensive legalization processes that can cost tens of millions of rupiah. Non-conforming extensions or modifications must be brought up to current building codes before permits can be issued.

Structural upgrades to meet earthquake safety standards are increasingly required, particularly for properties built before 2010. These upgrades can range from IDR 50 million to IDR 200 million depending on the property size and required modifications.

Environmental compliance for properties near water sources or protected areas may require additional permits and modifications. Septic system upgrades to meet current environmental standards often cost IDR 20-50 million for typical villa properties.

What visa and company setup costs are connected to property ownership?

Foreign property ownership often necessitates visa sponsorship or company establishment, creating additional annual costs.

KITAS (residence permit) costs approximately IDR 15-25 million annually through agent services, including visa processing, extensions, and related administrative fees. B211A visa conversions and multiple re-entry permits add to these costs.

PT PMA company setup costs typically start at IDR 30-40 million and can exceed IDR 80 million for complex structures. Annual company maintenance includes tax filings, accounting services, and compliance reporting, costing IDR 15-25 million yearly.

Investment permits (BKPM) and business licenses may be required depending on the ownership structure chosen. These permits involve additional government fees and professional service costs that can add IDR 10-20 million to initial setup expenses.

How much should I budget for property insurance in Bali?

Property insurance is not legally mandatory but strongly recommended, with annual premiums ranging from 0.1% to 0.4% of the insured property value.

Standard coverage includes fire, theft, and liability protection, with earthquake and flood coverage available as additional options. For a IDR 2 billion villa, annual premiums typically range from IDR 2 million to IDR 8 million depending on coverage levels and location risks.

Properties in flood-prone areas or near active volcanoes face higher premiums due to increased natural disaster risks. Comprehensive coverage including business interruption for rental properties can push premiums toward the higher end of the range.

International insurance companies operating in Indonesia often provide better claim processing and English-language support but typically charge premium rates compared to local insurers.

What unofficial costs and community contributions often surprise buyers?

Various unofficial costs and community contributions are expected but not legally mandated, creating surprise expenses for unprepared buyers.

1. **Temple and village donations (dana punia)** - IDR 500,000 to IDR 2 million annually for major ceremonies and temple maintenance2. **Banjar (village council) contributions** - IDR 200,000 to IDR 1 million monthly for local community activities and infrastructure3. **Security fees (pecalang)** - IDR 100,000 to IDR 500,000 monthly for traditional village security services4. **Environmental cleaning fees** - IDR 50,000 to IDR 200,000 monthly for beach or river cleaning initiatives5. **Festival and ceremony contributions** - IDR 500,000 to IDR 3 million annually for major religious celebrations like Galungan and Kuningan

These contributions help maintain positive relationships with local communities and ensure smooth integration into village life. While not legally required, refusing to participate can create social tensions and practical difficulties.

It's something we develop in our Indonesia property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Casenta Property - Buying Property in Bali
2. The Bali Lawyer - Notary Costs in Bali
3. Mata Property Bali - Real Estate Guide
4. Coco Development Group - Hidden Property Costs
5. Balitecture Realty - Property Tax Guide
6. Bali Exception - Foreign Investor Tax Guide
7. Farsight24 - Property Tax Simple Guide
8. Let's Move Indonesia - Notary Services Guide