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Property acquisitions in Bali involve a complex system of taxes and fees that vary significantly based on ownership type, property value, and your residency status.
Whether you're purchasing a villa in Canggu, an apartment in Seminyak, or land in Ubud, understanding the complete cost structure is essential for making informed investment decisions. From the 5% BPHTB acquisition tax to annual property taxes and notary fees, the total cost of ownership extends well beyond the purchase price.
If you want to go deeper, you can check our pack of documents related to the real estate market in Indonesia, based on reliable facts and data, not opinions or rumors.
Property buyers in Bali typically pay 5% BPHTB acquisition tax on values above IDR 60 million, while sellers pay 2.5% income tax on the transaction value.
Annual property tax (PBB) runs at 0.1% of the official taxable value (NJOP), with additional notary fees of 1-1.5% of the purchase price for legal processing.
| Tax/Fee Type | Rate | Who Pays | Calculation Basis |
|---|---|---|---|
| BPHTB (Acquisition Tax) | 5% | Buyer | NJOP or purchase price (minus IDR 60M threshold) |
| Seller's Income Tax (PPh) | 2.5% | Seller | NJOP or sale price (whichever higher) |
| Annual Property Tax (PBB) | 0.1% | Property Owner | NJOP minus small allowance |
| VAT (New Properties) | 11% | Buyer | Declared purchase price |
| Notary & PPAT Fees | 1-1.5% | Buyer | Purchase price |
| Rental Income Tax (Non-Resident) | 20% | Property Owner | Gross rental income |
| Rental Income Tax (Resident) | Up to 35% | Property Owner | Net rental income (progressive rates) |
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
What property ownership types exist in Bali and how do they affect your tax obligations?
Bali offers three main property ownership structures that directly impact your tax responsibilities and ongoing costs.
Freehold ownership (Hak Milik) provides full ownership rights but is legally restricted to Indonesian citizens only. Foreign investors often use nominee arrangements or company structures to access freehold, though this carries legal risks and compliance requirements.
Leasehold arrangements grant you rights to use the property for a specific term, typically 25, 30, or 99 years. As a leaseholder, you generally avoid annual property taxes (PBB) since you're not the registered landowner, though this depends on your lease agreement terms.
Hak Pakai (Right to Use) title offers the most straightforward option for foreign buyers, providing legal ownership rights for up to 30 years with renewal options. Properties held under Hak Pakai are subject to the same tax obligations as freehold properties, including acquisition taxes and annual property taxes.
The ownership type primarily affects your eligibility to purchase rather than the tax rates themselves - all ownership forms face similar acquisition and transfer tax calculations.
Which property value is used to calculate taxes in Bali?
Indonesian tax authorities use the NJOP (Nilai Jual Objek Pajak) as the primary basis for calculating most property taxes in Bali.
The NJOP represents the government's official taxable value, which is assessed and updated periodically by local tax authorities. This value often differs significantly from the actual purchase price, sometimes running 30-50% lower than market values in popular areas like Seminyak or Canggu.
For BPHTB acquisition tax calculations, authorities use whichever is higher between the declared purchase price and the NJOP value. This prevents buyers from artificially lowering their tax burden by declaring below-market purchase prices.
Annual property tax (PBB) calculations rely exclusively on the NJOP value, regardless of what you actually paid for the property. For luxury properties or certain tax calculations, independent appraisals may be required to determine the taxable value.
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What is the BPHTB acquisition tax and how much will you pay?
BPHTB (Bea Perolehan Hak atas Tanah dan Bangunan) is Indonesia's property acquisition tax that buyers must pay when purchasing real estate in Bali.
The tax rate is set at 5% of the taxable property value, calculated after subtracting the non-taxable threshold. The taxable value is determined by taking the higher amount between the NJOP official value and your actual purchase price.
For example, if you purchase a villa in Ubud for IDR 3 billion and the NJOP is IDR 2.5 billion, your BPHTB calculation would be: 5% × (IDR 3 billion - IDR 60 million threshold) = IDR 147 million in acquisition tax.
Payment must be completed before the property transfer can be legally registered at the Land Office (BPN). Most buyers arrange payment through their notary or legal representative during the transaction closing process.
What is the current non-taxable threshold for BPHTB in Bali?
As of September 2025, the NPOPTKP (non-taxable threshold) for BPHTB in Bali is set at IDR 60 million per transaction.
This means you only pay the 5% BPHTB rate on the property value that exceeds IDR 60 million. For a property valued at IDR 500 million, you would pay tax on IDR 440 million (IDR 500M - IDR 60M threshold).
The threshold amount can vary by region within Indonesia, as local governments have authority to set their own NPOPTKP levels. Bali generally follows the national guideline of IDR 60 million, though some regencies may have different thresholds.
This threshold applies per transaction, not per buyer, so it cannot be split or multiplied if multiple parties are involved in a single property purchase. The threshold amount is subject to periodic government adjustments, typically announced annually.
Who pays the BPHTB acquisition tax in a Bali property transaction?
The buyer is legally responsible for paying the BPHTB acquisition tax in Indonesian property transactions.
This responsibility cannot be legally transferred to the seller, though parties may privately negotiate who actually covers the cost as part of their purchase agreement. Some sellers may agree to cover BPHTB costs as an incentive, but the legal obligation remains with the buyer.
Payment must be made before the property deed can be registered at the local Land Office (BPN). Your notary will typically handle the BPHTB payment process and provide you with the official receipt required for property registration.
The tax must be paid within 30 days of signing the purchase agreement, and failure to pay on time can result in penalties and delays in property title transfer. Most property transactions include BPHTB payment as a standard closing requirement handled by the legal team.
What income tax do sellers pay on property transfers in Bali?
Property sellers in Bali must pay PPh Final (final income tax) at a rate of 2.5% of the gross transfer value.
The tax is calculated on whichever is higher between the NJOP official value and the actual sale price. For a villa selling for IDR 4 billion with an NJOP of IDR 3.5 billion, the seller pays 2.5% × IDR 4 billion = IDR 100 million in income tax.
This is considered a "final tax," meaning sellers cannot deduct expenses, depreciation, or other costs from the taxable amount. The 2.5% rate applies to the full gross transaction value.
Payment is typically handled through the notary during the closing process, with the tax amount deducted from the seller's proceeds. The seller must provide their tax ID number (NPWP) for the transaction to be processed legally.
Do buyers pay additional income tax or transfer-related taxes?
Buyers do not pay income tax on property purchases in Bali - the PPh obligation falls entirely on the seller.
However, buyers purchasing newly-built properties from developers must pay VAT (PPN) at 11% of the purchase price. This VAT applies to primary market transactions but not to resales between individuals.
For luxury properties exceeding IDR 20 billion in value, buyers may face additional luxury goods tax (PPnBM) at rates of 20% or higher. This threshold affects ultra-high-end villas and commercial properties rather than typical residential purchases.
The buyer's main tax obligation is the 5% BPHTB acquisition tax, plus VAT if purchasing new construction. No additional transfer taxes or buyer income taxes apply to standard residential property purchases.
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What is the annual property tax rate and how is it calculated?
PBB (Pajak Bumi dan Bangunan) is Indonesia's annual land and building tax, charged at 0.1% of the property's NJOP value in Bali.
| Property Type | Tax Rate | Calculation Basis | Annual Cost Example |
|---|---|---|---|
| Villa (NJOP IDR 2 billion) | 0.1% | NJOP minus small allowance | IDR 2 million annually |
| Land Plot (NJOP IDR 1.5 billion) | 0.1% | NJOP minus small allowance | IDR 1.5 million annually |
| Apartment (NJOP IDR 800 million) | 0.1% | NJOP minus small allowance | IDR 800,000 annually |
| Leasehold Property | Usually exempt | Depends on lease terms | IDR 0 (typically) |
| Luxury Villa (NJOP IDR 5 billion) | 0.1% | NJOP minus small allowance | IDR 5 million annually |
The tax is calculated on the NJOP value minus a small non-taxable allowance (typically IDR 10-12 million). Property owners registered under Hak Milik or Hak Pakai are responsible for annual PBB payments.
Leaseholders typically avoid PBB obligations since they're not the registered property owners, though some lease agreements may require tenants to cover these costs. Payment is due annually, with penalties applied for late payment.
Are there VAT or luxury taxes on property purchases in Bali?
VAT (PPN) applies to new property purchases from developers at a rate of 11% of the purchase price as of September 2025.
This tax only affects primary market transactions - when you buy directly from a developer or construction company. Resales between individuals are not subject to VAT, making second-hand properties more cost-effective from a tax perspective.
Luxury goods tax (PPnBM) applies to ultra-high-end properties with values exceeding IDR 20 billion. The tax rate typically starts at 20% and can go higher depending on the property's total value and classification.
Most residential villa and apartment purchases fall well below the luxury tax threshold, making VAT on new construction the primary additional tax concern for typical buyers. Always confirm with your notary whether VAT applies to your specific transaction.
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What are the standard notary and legal fees in Bali?
Notary fees in Bali typically range from 0.5% to 1% of the property purchase price, depending on transaction complexity and negotiation.
PPAT (Land Deed Official) fees are generally set at 1% of the property value. The PPAT handles the legal transfer of property ownership and ensures all documentation meets government requirements.
Land registration fees at the National Land Agency (BPN) are relatively modest, usually IDR 50,000 to 100,000 per certificate, plus additional administrative charges for processing and verification.
For a typical IDR 2 billion villa purchase, expect to budget approximately IDR 30-40 million total for notary, PPAT, and registration fees combined. These costs are typically paid by the buyer and handled during the closing process.
Additional legal costs may include due diligence fees, translation services, and consultation with specialized real estate attorneys, particularly for foreign buyers navigating complex ownership structures.
What hidden costs and extra fees should you expect?
Stamp duty (Bea Materai) applies to property documents at a fixed rate of IDR 10,000 per document, though multiple documents may be required for complex transactions.
Property management and community fees are common for villas and apartments, typically ranging from IDR 500,000 to 2 million monthly depending on the property type and included services like security, pool maintenance, and landscaping.
Bank transfer fees for international purchases can range from 0.1% to 0.5% of the transfer amount, plus fixed processing fees. Some banks charge additional fees for foreign exchange conversions and compliance documentation.
Real estate agent commissions typically range from 2% to 5% of the purchase price, usually split between buyer and seller agents. Property inspection fees may add IDR 2-5 million for professional assessments of structural and legal conditions.
Survey and measurement fees for land boundaries can cost IDR 1-3 million, while building permits and compliance certifications may require additional expenditures if the property lacks proper documentation.
How is rental income from Bali properties taxed?
Rental income taxation in Bali depends heavily on your tax residency status and the structure of your property ownership.
Indonesian tax residents face progressive income tax rates on net rental income, starting at 5% for the first IDR 50 million annually and scaling up to 35% for income exceeding IDR 5 billion per year. Residents can deduct legitimate expenses including maintenance, management fees, and depreciation.
Non-resident property owners face a flat 20% withholding tax on gross rental income, with no ability to deduct expenses. This tax is typically collected by the rental management company or tenant and remitted directly to Indonesian tax authorities.
Corporate ownership structures may face different tax rates and obligations. Properties held through Indonesian companies (PT) are subject to corporate income tax rates of 22% on net income, plus potential additional taxes on dividend distributions to foreign shareholders.
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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 structure is crucial for making informed investment decisions, whether you're buying a vacation villa or building a rental portfolio.
The combination of acquisition taxes, annual property taxes, and potential rental income taxes can significantly impact your overall returns, making careful planning essential before committing to any purchase.