The real estate market in Bali offers various advantages compared to the Dutch market:

1. Climate and Location: Bali’s tropical climate and beautiful beaches make it an ideal location for vacation homes and tourist rentals.

2. Price: Generally, real estate prices in Bali are lower than in the Netherlands, making it an attractive option for investors.

3. Growth Potential: With a growing economy and increasing demand for real estate, Bali offers opportunities for appreciation of investments.

4. Rental Opportunities: The high demand for vacation homes and rental accommodations in Bali can provide a high yield for investors.

5. Yield on Investment: The high demand for vacation rentals can result in higher yields on real estate investments in Bali, compared to the Netherlands where high property prices and taxes can limit yields.

Yes, foreigners can buy property in Bali under a ‘Right to Use’ (Hak Pakai) title or lease landed properties. And foreigners can establish a foreign-owned company (PMA) in Indonesia and purchase the property through the company.

When starting a property investment in Bali, location is a key factor to consider. Here are some locations in Bali that you can consider for property investment and their target market profiles:

  1. Canggu:
  • Target market: digital nomads, foreign tourists, and lovers of hippie/Ibiza culture.
  • Property options: villas with several rooms or guesthouse concept.
  • Rental price range: IDR 10-15 million/month per room.
  • Advantages: foreign market, high occupancy.
  • Disadvantages: expensive land, many foreign developers, and already dense area.
  1. Seminyak:
  • Target market: foreign tourists, local tourists, and upper-middle class.
  • Land price range: IDR 1.5-1.8 billion/are for small land and IDR 1 billion/are for large land.
  • Advantages: strategic location and luxury market.
  • Disadvantages: more expensive land.
  1. Uluwatu:
  • Target market: international, surfers, and those seeking tranquility.
  • Land price range: IDR 350 million-600 million/are.
  • Advantages: potential growth and significant land price increase.
  • Disadvantages: water issues and still-developing land.
  1. Ubud:
  • Target market: locals and foreigners seeking tranquility and nature.
  • Land price range: varies, more expensive in central Ubud.
  • Advantages: stable market and likes boutique villa concept.
  • Disadvantages: high cost of living and limited nightlife.
  1. Kintamani:
  • Target market: locals.
  • Land rental price range: IDR 2.5-3 million/are/year.
  • Advantages: always busy and potential for viral glamping or resort business.
  • Disadvantages: customary land and transactions based on customary law.

When purchasing property in Bali, Indonesia, there are several taxes and fees that need to be paid, including:

  1. Land and Building Acquisition Duty (BPHTB): This is a tax imposed on the acquisition of land and building rights, usually calculated as a percentage of the transaction value or the official land and building value, whichever is higher.
  1. Income Tax (PPh) on Property Sales: This is a tax imposed on the seller for the income gained from the property sale. However, it is common practice in Indonesia for this tax to be borne by the buyer.
  1. Notary Fee: This is a fee paid to the notary for the preparation of the sale and purchase agreement and other legal documents.
  1. Land and Building Tax (PBB): This is an annual tax imposed on the owner of the land and building, calculated based on the official land and building value.
  1. Transfer Fee: This is a fee for the transfer of land and building rights from the seller to the buyer.
  1. Registration Fee: This is a fee paid to the land office for the registration of the land and building rights transfer.

When renting out a property in Bali, Indonesia, the property owner is typically subject to the following taxes:

  1. Income Tax (PPh): This tax is levied on the rental income received by the property owner. The rate can vary depending on whether the owner is an individual or a corporate entity, and whether they are a resident or non-resident taxpayer.
  1. Value Added Tax (VAT): If the property owner is a VAT-registered entity, they may be required to charge VAT on the rental income and remit it to the tax authorities.
  1. Land and Building Tax (PBB): This is an annual tax imposed on property owners based on the value of the land and building.
  1. Tourism Tax: If the property is rented out on a short-term basis (such as a vacation rental), the owner may be required to collect and remit tourism tax.

The income tax rate for foreigners who do not reside in Indonesia, also known as non-resident taxpayers, is generally 20% of the taxable income. However, this rate may vary depending on the type of income and whether there is a tax treaty between Indonesia and the foreigner’s country of residence that provides for a different rate.

The income tax rate for Indonesian residents living in Indonesia is progressive and is determined based on the individual’s annual taxable income. The rates are as follows:

  • Up to IDR 60,000,000: 5%
  • IDR 60,000,001 to IDR 250,000,000: 15%
  • IDR 250,000,001 to IDR 500,000,000: 25%
  • IDR 500,000,001 to IDR 5,000,000,000: 30%
  • Over IDR 5,000,000,000: 35%

Our villa management company in Bali provides a comprehensive range of services to villa owners:

  1. Property Maintenance and Repair: We handle all aspects of property maintenance, including cleaning, landscaping, and repairs, ensuring your villa remains in top condition.
  1. Marketing and Advertising: We market your villa to potential renters through various channels such as online platforms, social media, and travel agencies, maximizing your property’s visibility.
  1. Booking and Reservations: We manage all bookings and reservations, handling inquiries, processing payments, and efficiently managing the rental calendar.
  1. Guest Services: Our team provides excellent guest services during their stay, from smooth check-in/check-out processes to concierge services and addressing any guest requests or issues promptly.
  1. Legal and Regulatory Compliance: We ensure your villa complies with local regulations, obtaining all necessary permits and licenses on your behalf.
  1. Financial Management: We handle all financial aspects of your property, from budgeting and invoicing to comprehensive financial reporting.
  1. Security: If required, we can provide security services to ensure the safety and security of your property and its guests.