Bali Property Taxes and Buying Costs for Foreigners

Foreigners buying property in Bali meet Indonesian taxes at three moments: when the deal is signed, every year while they hold the property, and whenever the property earns rental income. Each tax has a named legal basis and a named payer, and the payer is not always the buyer. This guide maps them one by one, with the official source for each, so you can walk into a meeting with a tax adviser holding a checklist rather than a question mark. Rates are left to the regulations linked below, several of which are set by the regency.

Which taxes apply when you buy property in Bali?

The answer depends first on what you are buying. Many foreign buyers in Bali take a leasehold: a contractual right to use land and a building for a fixed term. Others acquire Hak Pakai title through residency, or hold property through a foreign-owned company (PT PMA). Indonesian tax law attaches different taxes to a transfer of a land right than to a lease, so settle the structure before you compare costs. The structures themselves are covered in our guide on how to buy property in Bali as a foreigner. Below are the taxes that can arise at the transaction, and who owes each one.

Seller: final income tax on the transfer (PP 34/2016)

Income a person or company receives from transferring rights to land or buildings is subject to a final income tax under Government Regulation (PP) No. 34 of 2016. The regulation also covers a binding sale and purchase agreement (PPJB) and its amendments, which matters for off-plan purchases. The tax is owed by the party receiving the income, the seller, and is calculated on the gross value received, according to the Cabinet Secretariat summary of the regulation. In practice it is settled before the deed is signed, so a buyer should ask to see proof that it has been paid.

Buyer: BPHTB, the land and building acquisition duty

BPHTB (Bea Perolehan Hak atas Tanah dan Bangunan) is a regional tax on acquiring rights to land or buildings. Under Law No. 1 of 2022 on central and regional government financial relations (UU HKPD), the taxpayer is the person or company that acquires the right. The law sets a ceiling on the rate and a minimum non-taxable acquisition value, and each regency sets its own figures by regional regulation (Perda), so the rate for a property in Badung or Gianyar is the one in that regency's Perda. BPHTB arises on an acquisition of a right, such as a sale or the grant of a new right like Hak Pakai. The law lists the rights it covers: ownership (Hak Milik), cultivation and building rights (HGU, HGB), Hak Pakai, strata title and management rights. A lease is not on that list, so whether your structure involves acquiring one of these rights is one of the first questions to put to your adviser.

Developer: VAT and, at the top of the market, luxury goods sales tax

When the seller or lessor is a VAT-registered business (PKP), VAT applies to the supply of a new building or a taxable service. Since 1 January 2025, Minister of Finance Regulation (PMK) No. 131 of 2024 calculates VAT on non-luxury goods and services on a reduced tax base, which the Directorate General of Taxes explains keeps the effective burden where it was before. Luxury goods are taxed on the full base, and the same explainer names luxury residences among the goods that also carry luxury goods sales tax (PPnBM) under Government Regulation No. 61 of 2020. VAT may be included in the contract figure or added on top, so ask the developer to state which and to issue a tax invoice.

What do notaries and PPATs charge in Indonesia?

Two kinds of officials appear in a Bali property deal. A notary prepares and certifies agreements such as a lease or a binding sale agreement. A PPAT (Pejabat Pembuat Akta Tanah, a land deed official) executes deeds that transfer or encumber land rights, which are then registered with the land office (BPN). Both have legal fee caps. Article 32 of PP No. 24 of 2016 caps the PPAT fee, including the witnesses' fee, by reference to the transaction value written in the deed. Article 36 of Law No. 30 of 2004 on the Office of Notary links notary fees to the economic and social value of each deed, with a sliding cap by deed value. Translation, due-diligence searches, registration and certified copies are often quoted separately, so ask for one itemised quote before you sign anything.

What taxes do you pay every year as an owner?

The main recurring property tax is PBB-P2 (Pajak Bumi dan Bangunan Perdesaan dan Perkotaan), the rural and urban land and building tax. Under Law No. 1 of 2022, the taxpayer is the person or company that actually holds a right to the land, or owns, controls or benefits from the building. The tax base is the official assessed value (NJOP), the law sets a ceiling on the rate, and the regency sets the actual rate by Perda and issues an annual tax notice (SPPT). In a leasehold, the agreement usually states whether the lessor or the lessee pays PBB during the term. Check that clause, and check that past notices on the plot were paid, as part of your due diligence checklist.

How is rental income from a Bali property taxed?

Income from renting out land or buildings, in whole or in part, is subject to a final income tax on the gross rental value under PP No. 34 of 2017. The Directorate General of Taxes withholding guide lists it under Article 4(2) withholding: when the tenant is a company or another appointed withholder, the tenant deducts it; otherwise the landlord pays it. From the landowner's side, granting a leasehold is renting out land and buildings, so ask your adviser how this tax applies to the lease payments in your agreement.

For a foreign owner, the route the income takes matters. The Directorate General of Taxes page on Article 26 lists rent among the payments to non-residents that are subject to Article 26 withholding, with a treaty rate available only when the treaty conditions and the certificate-of-domicile rules are met. How Article 26, the final rental tax and your home country's treaty fit together for rent from Indonesian property is a question for your adviser; do not assume a treaty lowers the tax. Income distributed by a hotel operator from a rental pool, or earned through a PT PMA, can be treated differently from rent paid directly to an individual. This is the line in your plan where an adviser earns their fee.

Short stays: PBJT on hotel services

Short-stay accommodation is also subject to a regional consumption tax. Law No. 1 of 2022 replaced the old hotel tax with PBJT (Pajak Barang dan Jasa Tertentu), a tax on specified goods and services, and lists villas and tourist lodges among the hotel services it covers. The list also covers private homes, apartments and condominiums offered as hotel-style accommodation, but not long-term rentals of more than one month. The guest bears the tax and the provider collects it; the regency sets the rate by Perda within a national ceiling. The official explanatory notes to the law address accommodation marketed through third parties: when a residence functions as a hotel, the taxpayer is the owner or the party controlling it, not the digital platform or the marketing agent.

Licensing sits next to tax. Since 2026, listing a property for short-term rental on platforms such as Airbnb or Booking requires a registered NIB (business identification number) and other mandatory permits. HQC's hotel and villa projects come with PBG (the building approval), the appropriate tourism zoning and the legal infrastructure for compliant short-term rental. Aravita is the exception: it is designed for long-term living only. How management and rental licensing work in practice is covered in our guide to villa management and rental licences in Bali.

Bali property taxes at a glance: who pays what

The table summarises the taxes and fees above. Rates are deliberately left out: confirm each one in the cited regulation and, for regional taxes, in the Perda of the regency where the property sits.

What documents should a buyer keep for tax purposes?

Every tax question later in ownership, from a tax audit to a resale or a residency application, is answered with paper. With HQC, the buyer receives the leasehold agreement registered with an Indonesian notary, the construction agreement with the developer, the agreement with the management company or hotel operator, and the invoices and receipts confirming each scheduled payment. Every contract is signed with a registered PT entity, so the counterparty on each invoice can be identified and checked. Keep alongside them:

• Proof that the seller or lessor paid any final tax due on the transaction.
• Your BPHTB payment receipt, where BPHTB applies to your structure.
• Tax invoices for VAT, if the developer is VAT-registered.
• The itemised notary and PPAT invoices.
• Annual PBB-P2 notices and receipts, or written confirmation of who pays them under the lease.
• Statements from the management company or operator showing rental income and any tax withheld.

Frequently asked questions

Do foreigners pay property tax in Bali?

Yes. The annual land and building tax, PBB-P2, is owed by whoever holds or uses the land or building, regardless of nationality. In a leasehold, the agreement usually states whether the lessor or the lessee pays it during the term.

Who pays BPHTB, the buyer or the seller?

Under Law No. 1 of 2022, BPHTB is owed by the party that acquires the right to land or a building, which in a sale is the buyer. The seller separately owes the final income tax on the transfer under PP 34/2016.

Is VAT charged on a new villa in Bali?

When a VAT-registered developer supplies a new building or a taxable service, VAT applies, calculated under PMK 131/2024 since 1 January 2025. Residences classed as luxury goods can also carry the luxury goods sales tax (PPnBM). Ask whether VAT is included in the contract figure, and ask for a tax invoice.

What do notaries and PPATs charge in Bali?

Both fees are capped by law. Article 32 of PP 24/2016 caps the PPAT fee by reference to the transaction value written in the deed, and Article 36 of Law 30/2004 links notary fees to the value of each deed. Translation, searches, registration and certified copies are often quoted separately, so ask for one itemised quote.

Is there a capital gains tax on selling Bali property?

Indonesia taxes the transfer of land and building rights with a final income tax on the gross transfer value under PP 34/2016, rather than a separate tax on the gain. Selling or assigning a leasehold before its term ends follows different rules, so ask your adviser how your agreement is treated.

How is rental income from a Bali villa taxed?

Rent from land and buildings is subject to a final tax on the gross rental value under PP 34/2017, and short stays also fall under the regional PBJT tax on hotel services. Rent paid to a non-resident also raises Article 26 withholding questions, so confirm with an adviser how your income is routed and whether a tax treaty changes anything.

Taxes are one part of the cost of owning property in Bali; the other is the market you are buying into. Read why investors choose Bali, or talk to the HQC team and ask for the full document set of the project you are considering, so your adviser can review the structure before you commit.