Key Takeaways
- Total buyer costs range from approximately 2%–4% for leasehold to 10%–15%+ for PT PMA structures, on top of the purchase price.
- Leasehold buyers typically pay no BPHTB acquisition tax — a significant cost advantage over Hak Pakai and PT PMA structures.
- Foreigners without an Indonesian tax number (NPWP) face a 20% withholding tax when selling — versus 2.5% with an NPWP.
- Annual holding costs include PBB (0.1%–0.5% of assessed value), insurance, maintenance, and PT PMA compliance if applicable.
Table of Contents
- What Are the Total Costs of Buying Property in Bali?
- What Taxes Apply When Buying Property in Bali?
- What Are the Notary and Legal Fees?
- What Does It Cost to Set Up a PT PMA for Property?
- What Are the Annual Costs of Owning Property in Bali?
- What Taxes Apply When Selling Property in Bali?
- How Do Costs Compare Across Ownership Structures?
- Frequently Asked Questions
- Sources and References
What Are the Total Costs of Buying Property in Bali?
Total buyer costs range from approximately 2%–4% for leasehold (Hak Sewa) to 10%–15% or more for PT PMA structures, on top of the purchase price. The property price itself is only the starting point — taxes, notary fees, legal counsel, company setup, and administrative charges add significantly to the final outlay.
Seller costs add another 3%–5% (primarily the 2.5% income tax), meaning the round-trip cost of buying and later selling property in Bali is roughly 9.5%–14%. By Southeast Asian standards, this is competitive — comparable to Thailand and lower than Singapore or Hong Kong.
Costs vary significantly depending on which ownership structure you use. Foreigners in Bali typically choose between three pathways:
- Leasehold (Hak Sewa) — a contractual lease, lowest transaction costs, no land right transfer
- Hak Pakai (individual right to use) — a registered land right for foreigners with Indonesian residency
- PT PMA + HGB — a foreign-owned company holding a building right, highest cost but strongest control
The table below summarizes estimated buyer costs by structure. These are typical ranges reported by practitioners — actual costs vary by region, notary, and transaction value.
| Cost Category | Leasehold (Hak Sewa) | Hak Pakai (Individual) | PT PMA + HGB |
|---|---|---|---|
| Acquisition taxes | Minimal (no BPHTB for lessee) | BPHTB up to 5% | BPHTB up to 5% |
| Notary/PPAT fees | 1%–2.5% | 1%–2.5% | 1%–2.5% |
| Legal setup | Minimal | Title conversion costs | PT PMA setup costs |
| Independent legal counsel | USD 1,000–3,000 | USD 1,000–5,000 | USD 3,000–8,000 (incl. setup) |
| Typical total buyer add-on | ~2%–4% | ~8%–12% | ~10%–15%+ |
This article breaks down every cost at each stage: acquisition, setup, annual holding, and exit. For details on how each ownership structure works, see our guides on leasehold (Hak Sewa), PT PMA property ownership, and the PP 28/2025 regulatory changes.
What Taxes Apply When Buying Property in Bali?
The main taxes are BPHTB (up to 5%, paid by buyer on freehold, HGB, and Hak Pakai transfers), PPh (2.5%, paid by seller), and VAT (12%, only on new developer sales). Leasehold buyers pay no acquisition tax — a significant cost advantage over other structures.
The following table lists every tax that may apply to a property transaction in Bali:
| Tax | Rate | Paid By | Legal Basis | When Paid | Notes |
|---|---|---|---|---|---|
| BPHTB (Acquisition Tax) | Up to 5% of NPOP minus NPOPTKP | Buyer | UU 1/2022 | Before deed signing | Applies to freehold/HGB/Hak Pakai transfers. Does NOT apply to leasehold (Hak Sewa) |
| PPh (Seller’s Income Tax) | 2.5% of transaction value | Seller | PP 34/2016 | Before deed signing | Final tax — no further income tax on the gain |
| VAT / PPN | 12% (as of 2025) | Buyer | UU 7/2021 (Tax Harmonization Law) | At purchase | Only on NEW property from developers. Does NOT apply to resale transactions |
| PPnBM (Luxury Tax) | 20% | Buyer | — | At purchase | Only on luxury properties above IDR 30 billion (~USD 2M). Rare for most Bali transactions |
| Stamp Duty (Bea Meterai) | IDR 10,000 | Both | — | At signing | Nominal — applies to legal documents |
BPHTB: How the Acquisition Tax Works
BPHTB (Bea Perolehan Hak atas Tanah dan Bangunan) is the main acquisition tax for property buyers in Bali. Since the enactment of UU 1/2022, BPHTB is a regional tax — meaning rates and thresholds can vary between kabupaten (regencies) and kota (cities) in Bali.
The formula is:
BPHTB = 5% × (NPOP − NPOPTKP)
- NPOP (Nilai Perolehan Objek Pajak) — the acquisition value, typically the transaction price or the government-assessed value (NJOP), whichever is higher
- NPOPTKP (Nilai Perolehan Objek Pajak Tidak Kena Pajak) — the non-taxable threshold, which varies by region (typically IDR 60–100 million depending on the kabupaten)
Worked example: If you purchase a Hak Pakai property for IDR 5 billion and the NPOPTKP in that regency is IDR 80 million, the BPHTB would be: 5% × (IDR 5,000,000,000 − IDR 80,000,000) = 5% × IDR 4,920,000,000 = IDR 246,000,000 (approximately USD 15,400).
Why Leasehold Buyers Avoid BPHTB
Hak Sewa (leasehold) is a contractual arrangement — the lessee is not acquiring a registered land right at BPN. Because BPHTB applies to transfers of registered land rights (Hak Milik, HGB, Hak Pakai), the lessee typically does not pay BPHTB. This makes leasehold one of the most tax-efficient structures for foreign buyers in Bali.
However, the lessor (Indonesian landowner) is subject to PPh on lease income. Practitioners report the rate at 10% (final) under PP 34/2017. If the lessor is a foreigner without an NPWP, the rate increases to 20%.
Practical Note: BPHTB must be paid and proof of payment presented before the PPAT will execute the deed of transfer (AJB). If BPHTB is not settled, the transaction cannot be completed. Budget for this upfront — it is not a cost you can defer.
What Are the Notary and Legal Fees?
PPAT/notary fees are typically 1%–2.5% of the transaction value, though this is negotiable for higher-value transactions. Independent legal counsel for foreign buyers adds approximately USD 1,000–5,000 depending on complexity. These professional fees apply regardless of which ownership structure you choose.
PPAT/Notary Fees
A PPAT (Pejabat Pembuat Akta Tanah) is an authorized land deed official who drafts and witnesses the deed of transfer. For registered land rights (Hak Pakai, HGB), the PPAT drafts the AJB (Akta Jual Beli — deed of sale and purchase). For leasehold, a notary drafts the lease agreement.
Practitioners report typical PPAT/notary fees of 1%–2.5% of the transaction value. On a IDR 5 billion property, this translates to IDR 50–125 million (approximately USD 3,100–7,800). Fees are negotiable, particularly on higher-value transactions, and vary between practitioners.
Independent Legal Counsel
Engaging your own lawyer — separate from the transaction notary — is strongly recommended for all foreign buyers. An independent lawyer reviews contracts, advises on the appropriate ownership structure, identifies risks, and ensures compliance with Indonesian law.
Practitioners report fees of:
- Simple leasehold review: USD 1,000–3,000
- Hak Pakai transaction: USD 1,000–5,000
- PT PMA setup and property acquisition: USD 3,000–8,000 (often includes company formation)
Practical Note: Never use the same notary/PPAT recommended by the seller without independent verification. Engage your own legal counsel to review all documents before signing. The cost of independent advice is small compared to the risk of an unfavorable contract.
Due Diligence Costs
Before completing any property transaction, thorough due diligence is essential. This includes land title verification at BPN, survey and measurement checks, zoning compliance, and building permit verification. Practitioners report due diligence costs of USD 500–2,000 depending on scope and complexity. See our due diligence checklist for the full 20-step process.
Title Conversion Fees
If a property is currently held under Hak Milik (freehold, only available to Indonesian citizens), it must be converted to Hak Pakai or HGB before a foreigner or PT PMA can acquire it. This conversion involves BPN administrative fees that vary by region and property value. Your PPAT or lawyer can advise on the expected cost for a specific property.
Stamp Duty
Stamp duty (Bea Meterai) of IDR 10,000 per document applies to legal documents. This is a nominal cost and does not materially affect transaction budgets.
What Does It Cost to Set Up a PT PMA for Property?
Setting up a PT PMA requires a minimum paid-up capital of IDR 2.5 billion (~USD 155,000) under current regulations, plus setup costs that practitioners report typically range from USD 3,000–8,000. This is a structural cost — it applies only if you choose the PT PMA pathway to hold property under HGB.
A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a foreign-owned Indonesian limited liability company. Under Permen Investasi/BKPM 5/2025, the minimum paid-up capital was reduced to IDR 2.5 billion (from IDR 10 billion previously). For full details on the PT PMA setup process, capital structure, and compliance requirements, see our PT PMA property guide.
Setup Cost Breakdown
Practitioners report the following typical costs for establishing a PT PMA for property purposes:
| Cost Item | Typical Range | Notes |
|---|---|---|
| Minimum paid-up capital | IDR 2.5 billion (~USD 155,000) | Required under Permen Investasi/BKPM 5/2025 |
| Company registration, legal, and OSS licensing | USD 3,000–8,000 | Includes notary deed, NIB registration, KBLI research |
| Director’s KITAS (if required) | Varies | Additional cost if a foreign director needs a work permit |
| Annual compliance (bookkeeping, tax filings) | USD 2,000–5,000/year | Ongoing obligation — corporate reporting, tax returns |
The paid-up capital is not a fee — it is your company’s working capital that can be used for property acquisition and business operations. However, it must be deposited and documented. The setup fees (USD 3,000–8,000) cover the legal and administrative work of establishing the company.
Verify current KBLI activity codes with your consultant, as the applicable codes for property-related activities are updated periodically. Your legal advisor will identify the correct codes for your intended business activities during the setup process.
What Are the Annual Costs of Owning Property in Bali?
The main annual cost is PBB (land and building tax), typically 0.1%–0.5% of the government-assessed value (NJOP). Property management, maintenance, and insurance add significantly depending on whether you operate the property commercially. PT PMA owners face additional annual compliance costs.
PBB (Land and Building Tax)
PBB (Pajak Bumi dan Bangunan) is an annual tax levied on all land and buildings in Indonesia, governed by UU 12/1994 and subsequent amendments. The rate is typically 0.1%–0.5% of the NJOP (Nilai Jual Objek Pajak — government-assessed value), which is usually well below market value.
For leasehold properties, the PBB obligation falls on the registered landowner (the Indonesian freeholder). However, lease contracts commonly pass this obligation to the lessee — check your lease agreement carefully.
Typical Annual Costs for a Mid-Range Bali Villa
The following table shows typical annual holding costs practitioners report for a mid-range villa in Bali (market value approximately IDR 5–10 billion):
| Cost Item | Typical Annual Range | Notes |
|---|---|---|
| PBB (property tax) | IDR 2–10 million (~USD 125–625) | Based on NJOP, which is typically well below market value |
| Insurance | USD 500–2,000 | Depends on coverage type, building value, and location |
| Maintenance | USD 2,000–5,000 | Tropical climate is hard on buildings — roofing, pool, garden, pest control |
| Property management | 10%–20% of rental income | If using a management company for guest services, bookings, cleaning |
| PT PMA compliance (if applicable) | USD 2,000–5,000 | Annual tax filing, corporate bookkeeping, potential audits |
| Pondok Wisata license renewal | Varies | If operating commercially — requires landowner cooperation for leasehold |
Bali’s tropical climate — high humidity, intense UV, heavy rainfall, and active termite populations — is demanding on buildings. Regular preventive maintenance is essential to preserve property value. Neglecting maintenance for even a year or two can lead to costly repairs.
If you hold property through a PT PMA, annual compliance costs are unavoidable. The company must file corporate tax returns, maintain proper bookkeeping, and meet reporting obligations regardless of whether the property generates income. See our PT PMA guide for details on ongoing compliance requirements.
What Taxes Apply When Selling Property in Bali?
Sellers pay a 2.5% final income tax (PPh) on the transaction value under PP 34/2016. This is a final tax — no further income tax is owed on the gain. However, foreigners without an Indonesian tax number (NPWP) face a withholding rate that practitioners report at 20% — making tax registration essential well before you list the property for sale.
Seller’s PPh (Income Tax on Property Transfer)
The seller’s income tax is 2.5% of the transaction value. This is a final tax — meaning no further income tax is owed on any capital gain from the sale. Indonesia does not have a separate capital gains tax on property. The 2.5% PPh IS the final tax on the transfer, which is favorable compared to many countries where capital gains taxes can reach 15%–30% or more.
The NPWP Problem: 20% vs 2.5%
This is one of the most significant cost traps for foreign property sellers in Bali. Foreigners without an Indonesian tax number (NPWP) face a withholding rate that practitioners report at 20% — eight times the standard 2.5% rate. On a IDR 5 billion sale, the difference is stark:
- With NPWP: 2.5% × IDR 5 billion = IDR 125 million (~USD 7,800)
- Without NPWP: 20% × IDR 5 billion = IDR 1 billion (~USD 62,500)
Practical Note: If you plan to sell property in Bali as a foreigner, obtain an Indonesian NPWP (tax number) well before listing. Without it, you face a 20% withholding tax instead of 2.5%. This is one of the most common and costly mistakes foreign sellers make.
Leasehold Exit Costs
If a foreigner is selling or assigning a leasehold (transferring the remaining term to a new lessee), the tax treatment depends on how the transaction is structured. The lessor (landowner) continues to be liable for PPh on lease income. If the lessee assigns the lease to a third party, the tax treatment of any profit on the assignment is less clear-cut and varies by circumstance. Consult a qualified tax advisor before structuring a leasehold exit.
Round-Trip Tax Burden
When buying and later selling, the total tax exposure for freehold and HGB structures is approximately 7.5%:
- On purchase: BPHTB up to 5% (paid by buyer)
- On sale: PPh 2.5% (paid by seller)
- Total round-trip: approximately 7.5% in taxes alone
Leasehold has a lower round-trip tax burden because the lessee avoids BPHTB on acquisition. This is another reason leasehold is popular among foreign investors focused on short-to-medium-term holds.
How Do Costs Compare Across Ownership Structures?
Leasehold is the lowest-cost entry point at approximately 2%–4% above the lease price. Hak Pakai adds roughly 8%–12% in transaction costs. PT PMA structures cost 10%–15% or more when including company setup and capital requirements. The right structure depends on your investment scale, time horizon, and need for control.
The following master comparison table covers every major cost item across all three ownership structures available to foreigners in Bali:
| Cost Item | Leasehold (Hak Sewa) | Hak Pakai (Individual) | PT PMA + HGB |
|---|---|---|---|
| BPHTB (acquisition tax) | Not applicable | Up to 5% | Up to 5% |
| Seller’s PPh | N/A (lessor pays 10% on lease value) | 2.5% | 2.5% |
| VAT (new builds only) | 12% if from developer | 12% if from developer | 12% if from developer |
| Notary/PPAT fees | 1%–2.5% | 1%–2.5% | 1%–2.5% |
| Legal counsel | USD 1,000–3,000 | USD 1,000–5,000 | USD 3,000–8,000 (incl. setup) |
| Company setup | None | None | USD 3,000–8,000 |
| Minimum capital | None | None | IDR 2.5 billion paid-up |
| Title conversion | None | BPN fees for HM → HP | BPN fees for HM → HGB |
| Annual PBB | Passed to lessee via contract | Paid by owner | Paid by PT PMA |
| Annual compliance | None | Minimal | USD 2,000–5,000/year |
| Visa/residency | Not required | KITAS/KITAP required (cost varies) | Director KITAS may be required |
| Selling tax | Varies (see text) | 2.5% PPh | 2.5% PPh |
| Typical total buyer add-on | ~2%–4% | ~8%–12% | ~10%–15%+ |
When Each Structure Makes Sense
Leasehold (Hak Sewa) is the most cost-effective option for foreigners who want to use or rent out a villa for 15–30 years without the overhead of company formation or significant upfront tax. It is ideal for lifestyle buyers, short-to-medium-term investors, and those who want simplicity. For a complete guide, see our leasehold (Hak Sewa) guide.
Hak Pakai suits foreigners with Indonesian residency (KITAS/KITAP) who want a registered, transferable land right in their own name. The costs are higher due to BPHTB and title conversion, but the right is registered at BPN and provides stronger legal standing than leasehold. Hak Pakai is tied to your residency — see our guide on what happens if your visa expires for the implications.
PT PMA + HGB is the highest-cost option but offers the strongest long-term control. The company can outlive any individual owner, the HGB is renewable, and the structure supports commercial operations. It makes financial sense primarily for larger investments where the setup and compliance costs are proportionally small relative to the property value. See our PT PMA guide for full details.
Regardless of structure, never use a nominee arrangement to hold property in Bali. Nominee ownership is illegal under Indonesian law and carries severe penalties. See our nominee ownership risks guide for why this approach is dangerous.
Frequently Asked Questions
How much does it cost to buy a villa in Bali as a foreigner?
Total costs depend on the ownership structure. For leasehold, add approximately 2%–4% to the lease price for notary and legal fees. For Hak Pakai or PT PMA structures, add 8%–15%+ including acquisition tax, legal fees, and setup costs. The purchase price itself varies widely by location, size, and condition — but the transaction costs above are the add-ons every buyer should budget for.
Do foreigners pay BPHTB when buying leasehold in Bali?
Generally no. BPHTB applies to transfers of registered land rights (Hak Milik, HGB, Hak Pakai). Hak Sewa (leasehold) is a contractual arrangement, not a registered land right transfer, so BPHTB typically does not apply to the lessee. This is one of the key cost advantages of the leasehold structure for foreign buyers.
What is the annual property tax in Bali?
PBB (Pajak Bumi dan Bangunan) is the annual land and building tax. The rate is typically 0.1%–0.5% of the government-assessed value (NJOP), which is usually significantly below market value. For a mid-range villa, practitioners report annual PBB of approximately IDR 2–10 million (USD 125–625).
What tax do I pay when selling property in Bali as a foreigner?
Sellers pay a 2.5% final income tax (PPh) on the transaction value. However, foreigners without an Indonesian tax number (NPWP) face a withholding rate that practitioners report at 20% instead. Obtaining an NPWP before selling is essential to avoid this significantly higher rate.
Is VAT charged on all property purchases in Bali?
No. VAT (currently 12% as of 2025) applies only to new property purchased directly from developers. Secondary market transactions and resale purchases between individuals are not subject to VAT.
How much does a notary cost for a property transaction in Bali?
PPAT/notary fees are typically 1%–2.5% of the transaction value. This is negotiable for higher-value transactions. Always engage independent legal counsel in addition to the transaction notary — the additional cost of USD 1,000–5,000 is well worth the protection it provides.
What are the hidden costs of buying property in Bali?
Common overlooked costs include: title conversion fees (Hak Milik to Hak Pakai or HGB), ongoing PT PMA compliance costs (USD 2,000–5,000/year), building permit fees (PBG) that vary by building size and location, furnishing and fit-out for unfurnished properties, lease extension pricing at renewal, and the 20% withholding tax on sale if you lack an NPWP.
Is it cheaper to buy leasehold or freehold through PT PMA in Bali?
Leasehold is significantly cheaper in upfront costs — no BPHTB, no company setup, no capital requirement. PT PMA provides stronger long-term control but requires IDR 2.5 billion minimum paid-up capital plus setup and annual compliance costs. The right choice depends on your investment scale and time horizon — leasehold suits smaller investments and shorter holds, while PT PMA makes sense for larger-scale, long-term investments.
Sources and References
- UUPA No. 5/1960 — Legal basis for land rights including Hak Sewa, Hak Pakai, and HGB
- PP 34/2016 — Income tax on property transfers (seller’s 2.5% PPh)
- UU 1/2022 — Regional tax framework governing BPHTB and local property taxes
- PP 103/2015 — Foreign Hak Pakai ownership rules
- PP 28/2025 — Risk-based licensing and recent regulatory changes
- Permen Investasi/BKPM 5/2025 — PT PMA capital requirements
- PP 44/1994 — Hak Sewa for building purposes
- UU 7/2021 (Tax Harmonization Law) — VAT rate changes
- PP 34/2017 — Rental income tax provisions
Disclaimer: This guide is for informational purposes only and does not constitute legal or tax advice. Tax rates, thresholds, and regulations can change. Always consult a qualified Indonesian lawyer and tax advisor before making property investment decisions. See our Editorial Policy.
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