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
Villa and apartment owners in Bali face several ongoing taxes that can significantly impact their annual budget.
The main tax is the annual Property Tax (PBB) at 0.3-0.5% of assessed value, plus community fees ranging from $600-1,500 yearly. Rental income triggers additional taxes of 10-20% depending on residency status, while short-term rentals require tourism licenses and VAT collection. Garbage collection fees, insurance costs, and potential penalties for late payments add to the ongoing expenses.
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As of September 2025, Bali property owners pay annual Property Tax (PBB) of 0.3-0.5% on assessed value, plus community fees of $600-1,500 yearly.
Rental income is taxed at 10% for residents and 20% for non-residents, with additional VAT requirements for short-term rentals and tourism taxes collected from guests.
| Tax/Fee Type | Rate/Amount | Who Pays |
|---|---|---|
| Property Tax (PBB) | 0.3-0.5% of NJOP annually | All owners |
| Luxury Property Surcharge | Additional 10-20% | High-end properties |
| Community/HOA Fees | $600-1,500+ yearly | All owners |
| Rental Income Tax (Residents) | 10% of gross income | Indonesian tax residents |
| Rental Income Tax (Non-residents) | 20% of gross income | Foreign non-residents |
| VAT on Short-term Rentals | 10% on guest charges | Licensed rental operators |
| Garbage Collection | $10-50+ monthly | All property owners |
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
Do villa and apartment owners in Bali pay annual property tax, and what are the typical rates?
All villa and apartment owners in Bali must pay annual Property Tax called Pajak Bumi dan Bangunan (PBB).
The PBB rate ranges from 0.3% to 0.5% of the government-assessed value (NJOP) for residential properties. This assessment is typically lower than current market prices, making the effective tax rate on actual property value even lower.
For luxury properties valued above certain thresholds, an additional surcharge of 10% to 20% applies on top of the standard rate. The exact calculation uses the formula: PBB = 0.5% × NJKP, where NJKP represents 20% or 40% of the taxable portion of the assessed value.
As of September 2025, a typical villa worth $500,000 in market value might have an assessed value of $350,000, resulting in annual property tax of approximately $1,050 to $1,750.
Is land tax calculated separately from building tax in Bali?
The PBB combines both land tax (Pajak Bumi) and building tax (Pajak Bangunan) into a single annual payment.
While the tax components are conceptually separate, property owners receive one consolidated tax bill that covers both the land and any structures on it. The assessment considers the land value based on location, accessibility, and infrastructure, while building value depends on construction quality, size, and age.
Local tax authorities evaluate each component separately during assessment but present them as unified annual tax liability. This streamlined approach simplifies payment for property owners compared to systems requiring separate land and building tax payments.
It's something we develop in our Indonesia property pack.
Do foreigners face different property tax rates than Indonesian citizens?
Foreigners pay identical PBB rates as Indonesian citizens for the property tax itself.
The key difference emerges with rental income taxation, where non-resident foreigners face a flat 20% tax rate on gross rental income, while Indonesian tax residents pay only 10%. However, double taxation treaties can reduce the non-resident rate to 10% for eligible countries.
Foreign property owners who spend more than 183 days annually in Indonesia become tax residents and qualify for the lower 10% rental income tax rate. Property ownership structure also matters - foreigners typically hold properties through leasehold arrangements or nominee structures, which don't affect the basic PBB calculation.
Transfer taxes and capital gains taxes apply equally regardless of nationality when buying or selling Bali properties.
What ongoing community and village fees should owners budget for annually?
Property owners must budget for Homeowner Association (HOA) fees and traditional village contributions that vary significantly by location and property type.
| Fee Type | Annual Cost Range | What's Included |
|---|---|---|
| Apartment HOA Fees | $600 - $1,500 | Security, maintenance, amenities |
| Villa Complex Management | $800 - $2,000 | Grounds keeping, pool maintenance, security |
| Independent Villa | $200 - $800 | Basic maintenance, staff costs |
| Village/Banjar Fees | $50 - $300 | Cultural ceremonies, community projects |
| Security Services | $300 - $1,200 | 24/7 guard services, CCTV monitoring |
How do local authorities calculate the taxable value of properties in Bali?
Local tax authorities determine taxable value through the NJOP (Tax Object Selling Value) system, which serves as the official assessment for property taxation.
The NJOP calculation considers multiple factors including property location, road access quality, proximity to commercial areas, land size, building specifications, and recent comparable sales in the neighborhood. Authorities typically reassess NJOP values every three to five years or when significant market changes occur.
The assessment process involves physical inspections by certified appraisers who measure buildings, evaluate construction quality, and document property features. Market transactions in the area influence the baseline values, though NJOP typically runs 60-80% below current market prices.
Property owners can challenge assessments through formal appeals if they believe the valuation exceeds fair market standards or contains factual errors about the property characteristics.
What additional taxes apply to short-term rental properties on platforms like Airbnb?
Short-term rental operators must obtain tourism licenses and face multiple additional tax obligations beyond standard property taxes.
Licensed short-term rental operators pay 10% tax on gross rental income if operating as individuals, or up to 25% corporate tax plus dividend withholding tax if operating through a PT PMA company structure. All licensed operators must also charge guests 10% VAT on accommodation fees when their rental income exceeds established thresholds.
Unlicensed operators face significant penalties and potential business closure, making proper licensing essential despite the additional costs. The licensing process requires specific permits like Pondok Wisata for smaller operations or full hotel licenses for larger rental businesses.
Tourism authorities conduct regular compliance checks, particularly in high-traffic areas like Seminyak, Canggu, and Ubud, with strict enforcement of tax collection and remittance requirements.
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What income tax rates apply to rental earnings from Bali properties?
Rental income tax rates depend primarily on the owner's tax residency status in Indonesia.
Indonesian tax residents (including foreigners who spend 183+ days annually in Indonesia) pay 10% tax on gross rental income from Bali properties. Non-resident foreigners face a higher 20% flat rate on gross rental income, though this can be reduced to 10% if their home country has a double taxation treaty with Indonesia.
Rental income must be reported annually to Indonesian tax authorities, with quarterly advance payments required for larger rental operations. Property management companies often handle tax withholding and reporting for foreign owners, charging additional fees for this service.
All rental income is calculated on gross receipts before expenses, making accurate record-keeping essential for compliance and potential treaty benefits.
It's something we develop in our Indonesia property pack.
Do owners need to collect tourism taxes from guests, and what are the amounts?
Property owners do not collect tourism taxes directly from guests staying at their properties.
As of September 2025, Bali charges visitors a one-time tourism tax of IDR 150,000 (approximately $10) collected at the airport upon arrival or through online platforms before travel. This tax applies to all international visitors regardless of accommodation type.
Licensed short-term rental operators must charge 10% VAT on accommodation fees when their income exceeds tax thresholds, but this differs from the arrival tourism tax paid by visitors. The VAT must be collected from guests and remitted to tax authorities quarterly.
Some local areas may impose additional tourism-related fees, but these are typically collected through accommodation providers rather than individual property owners.
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What are the garbage collection and sanitation fees for property owners?
All property owners must pay garbage collection and sanitation fees, which have become increasingly regulated and enforced across Bali.
Monthly garbage fees typically range from $10 for small apartments to $50+ for large villas, depending on property size and waste generation. Many areas now implement tiered pricing based on property usage, with commercial or rental properties facing higher rates than primary residences.
Some communities include garbage collection in HOA fees, while others require separate payments directly to local waste management companies or village authorities. Bali has implemented stricter waste disposal regulations, with significant fines for non-compliance or improper waste separation.
Property owners in tourist areas like Seminyak and Canggu often face higher sanitation fees due to increased waste generation and enhanced cleaning requirements for maintaining area appeal.
Are there transfer or capital gains taxes when selling Bali properties?
Property sellers face multiple tax obligations when disposing of Bali real estate, regardless of nationality.
All sellers must pay a 2.5% income tax on the gross sales price, calculated on the full transaction value rather than capital gains. Additionally, buyers pay a 5% Acquisition Duty of Rights on Land and Buildings (BPHTB), but this doesn't affect seller tax liability.
Capital gains tax may apply separately if the property value increased significantly during ownership, though specific rates vary based on holding period and property type. Properties held longer than certain periods may qualify for reduced capital gains treatment.
Foreign sellers often face additional complexity with tax treaty provisions and potential double taxation issues requiring professional tax advice to optimize liabilities.
It's something we develop in our Indonesia property pack.
Do property insurance premiums include local taxes or surcharges?
Property insurance premiums in Bali typically range from $300 to $1,000 annually and are not subject to specific local property taxes or surcharges.
Standard homeowner's insurance covers fire, theft, and natural disasters, with earthquake and flood coverage requiring additional premium payments. Insurance costs vary based on property value, location risk factors, and coverage limits selected by owners.
While insurance premiums themselves don't trigger additional local taxes, some comprehensive policies include liability coverage for rental operations, which may require disclosure of rental income for proper coverage calculation.
Property owners should ensure their insurance policies comply with local regulations, particularly for rental properties where guest liability coverage becomes essential for legal protection.
What penalties apply for late payment of property and rental taxes?
Late payment of property taxes and rental income taxes in Bali triggers automatic penalties and interest charges that compound over time.
1. **Property Tax (PBB) Penalties:** - 2% monthly interest on outstanding balance - Administrative fines starting at IDR 100,000 - Potential property seizure for extended non-payment - Legal action for systematic tax avoidance - Credit rating impact for Indonesian tax residents2. **Rental Income Tax Penalties:** - 2% monthly interest on unpaid tax amounts - 50% penalty on the tax owed for willful non-compliance - Business license suspension for commercial operators - Bank account freezing in severe cases - Criminal prosecution for tax evasion exceeding thresholds3. **VAT Collection Penalties:** - 100% penalty on uncollected VAT from guests - Immediate business license revocation - Personal liability for company directors - Tourism permit cancellation - Blacklisting from future licensingEnforcement has become increasingly strict, particularly for properties in tourist zones where authorities conduct regular compliance audits and impose severe penalties for tax avoidance.
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.
Understanding Bali's property tax system is crucial for making informed investment decisions, as ongoing costs can significantly impact your returns.
With proper planning and compliance, property owners can navigate these tax obligations while maximizing their investment potential in Bali's dynamic real estate market.
Sources
- Exotiq Property - Property Taxes in Bali
- Balitecture Realty - Bali Property Tax Indonesia
- Farsight24 - Bali Property Taxes Simple Guide
- Neginski - Foreigners Buying Property in Bali
- Bali Home Immo - What Taxes Apply When Buying Property
- Coco Development Group - What to Know Before Buying Apartments
- Bali Villa Realty - Airbnb Business in Bali
- Bukit Vista - How to Start a Rental Property Business