Buying a villa in Bali is the easy part; understanding what you will pay Indonesia — and your home country — every year after is where owners get surprised. Here is how Bali property taxation actually works for foreigners holding via PT PMA or leasehold.
Taxes at each stage
- Purchase: transfer tax (BPHTB) of 5% for the buyer, seller pays 2.5% income tax; notary and due diligence costs on top;
- Holding: annual land and building tax (PBB) — modest, but must be filed and paid on time;
- Rental income: via PT PMA — corporate regime with deductible expenses; direct leasehold rentals by individuals face 20% withholding for non-residents;
- Sale: 2.5% of the transaction value for the seller; share deals in a PT PMA are taxed differently — often the smarter exit;
- Home country: rental income and gains usually must be reported where you are tax resident — CFC and CRS rules apply to PT PMA owners.
How we help
We structure Bali purchases (PT PMA vs leasehold), set up tax-efficient rental operations, handle Indonesian filings with local partners and align everything with your home-country reporting. Ask for a tax model of your specific villa deal before you sign anything.
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