Taxes and fees when buying property in Bali (2026)

Who pays what

The fee caps don't include taxes, certificate checks or land office fees.

Two things decide which rows apply to you.

First, the kind of deal. BPHTB and the seller's 2.5% are taxes on acquiring or transferring a land right, such as Hak Milik, HGB or Hak Pakai. A lease isn't on that list (Badung Perda 7/2023 Art. 10(3)). A lease is taxed as rent: a final 10% on the gross lease price (PP 34/2017). Rent paid to a non-resident owner is subject to 20% withholding, or a lower treaty rate (UU PPh Art. 26). Taking over someone else's lease is generally treated as the outgoing tenant letting it on, with the 10% due on what you pay them. We found no official ruling on that point, so confirm it with a tax consultant.

Second, who sells. VAT applies only when the seller is a VAT-registered developer. A private owner selling a resale villa doesn't charge it.

Example 1: a 2-bedroom leasehold villa in Canggu

The sums below use a fixed price of IDR 4,000,000,000, the rounded median asking price of a 2-bedroom leasehold villa in Canggu on 1 October 2026. Today's live median is IDR 4B ($222,850), across 824 listings. Half of them ask between IDR 3.2B and IDR 4.9B, and the median lease has 25 years left.

It's an asking price, not an agreed one. Here is what a lease at that price triggers.

What the sums show:

• The one tax on this lease is the 10% on the lease price, IDR 400,000,000. By law it sits with the landowner, unless a company tenant withholds it. Settle in the contract who carries it and whether the asking price already includes it.
• A leasehold price buys the years left. At today's medians, a 2-bedroom lease in Canggu has 25 years left and costs IDR 162M per year of lease left. The 10% tax is, in effect, charged on those years.

Example 2: a 2-bedroom freehold in Canggu, bought on Hak Pakai

The sums below use a fixed price of IDR 5,300,000,000, the rounded median asking price of a 2-bedroom freehold in Canggu on 1 October 2026. Today's live median is IDR 5.3B ($294,023), across 92 listings.

A foreigner can't take over the seller's Hak Milik, so the route is Hak Pakai. In Bali the house must cost at least IDR 5 billion, and this price clears that. Over the seller's Hak Milik, Hak Pakai runs up to 30 years, renewable by a new deed, and a PPAT deed creates it (PP 18/2021; Kepmen ATR/BPN 1241/2022). Our guide to leasehold vs freehold in Bali explains the titles.

We don't know this plot's NJOP. BPHTB is charged on the price or the NJOP, whichever is higher, so the sums below use the price and assume the NJOP is lower. If the NJOP is higher, the BPHTB is higher too.

What the sums show:

• On a resale, the transfer taxes on this price come to IDR 393,500,000: IDR 261,000,000 from the buyer and IDR 132,500,000 from the seller. Add up to IDR 53,000,000 for the PPAT.
• Buying new from a developer, VAT is the largest item, and at this price none of it is waived.
• 41 of today's 92 Canggu 2-bedroom freeholds ask under IDR 5 billion. Below that price, a foreigner's house in Bali doesn't qualify for Hak Pakai at all.

USD at 17,949 IDR to the dollar, the rate on the listing page.

The 2026 VAT waiver: who qualifies

The government pays the VAT on the first IDR 2 billion of the price when all of these hold (PMK 90/2025):

• It's a new landed house or apartment unit, priced at IDR 5 billion or less.
• It's the developer's first sale of the unit, it's ready to occupy, and it has a house identity code.
• You claim it for one unit only.
• You're an Indonesian with an NPWP or NIK, or a foreigner with an NPWP who meets the foreign-ownership rules. A non-resident can register for an NPWP with a passport (PER-7/PJ/2025).
• The deed (or a fully paid PPJB) and the handover both fall between 1 January and 31 December 2026.

VAT on the rest of the price is due as normal. An off-plan villa that won't be handed over in 2026 doesn't qualify, and neither does a leasehold.

For a foreign buyer of a house in Bali the two limits meet at one point: the waiver stops at IDR 5 billion, and the Bali minimum for a foreigner's house is IDR 5 billion. An apartment leaves more room, because its Bali minimum is IDR 2 billion.

What the price and the tax base don't tell you

• NJOP is set by the regency, not by the market. BPHTB uses whichever is higher, the price or the NJOP (Badung Perda 7/2023 Art. 12), so a low price in the deed doesn't lower the tax below the NJOP. PBB uses the NJOP alone. We don't have NJOP values for listed villas, so we can't show a PBB figure without guessing.
• The seller's tax can end up in the price. By law the 2.5% is the seller's. Read which party pays which tax in the deed, and ask your notary before you agree to carry any of the seller's.
• The waiver has a hard end date. A VAT-free first IDR 2 billion in December 2026 is not the same deal in January 2027 unless the government extends it.

Tax on a villa you rent out

Owning is taxed every year, and renting out adds more. Guests pay a 10% regional tax on accommodation (PBJT) in Badung, Denpasar and Gianyar, and the villa operator must collect it and pay it to the regency (UU 1/2022 Art. 58; Badung Perda 7/2023, amended by Perda 8/2025).

Income tax depends on how you let it. Rent from a long-term lease of land or a building is taxed at a final 10% of the gross rent (PP 34/2017). Nightly villa rentals are treated as accommodation services, not rent, so ask a tax adviser which regime applies to you.

Short-term letting also needs a business licence, and a foreigner can't hold the one for a small villa. Our leasehold vs freehold guide explains why.

Costs people forget

These have no fixed tax rate, so we give no numbers. Ask for a written quote for each.

1. Checking the notary. Notaries must by law be impartial (UU 2/2014 Art. 16(1)(a)), and you can choose your own. Check a notary on AHU Online (ahu.go.id) and a PPAT on the land agency's (ATR/BPN) list for the regency. Only a PPAT can make the sale deed for registered land (PP 37/1998 jo. PP 24/2016).
2. Due diligence on the title. A lease is only as good as the landlord's Hak Milik certificate. Before a sale deed, the PPAT must check the original certificate at the land office. For a lease, ask the notary to run the same check and to make sure every co-owner or heir signs. The fee caps don't cover the check or land office fees.
3. Zoning check. What counts is the zone code in the regency plan (RDTR or RTRW), confirmed through a KKPR in the OSS licensing system for the exact plot (PP 28/2025; Permen ATR/BPN 14/2021). The colour on an informal map is not the test.
4. Building permits. Since 2021 the permit is a PBG, and a finished building needs an SLF (PP 16/2021). A villa built earlier may still rely on its old IMB if it wasn't extended or changed.
5. Translation. An agreement with an Indonesian party must be in Indonesian, alongside the foreign party's language or English (UU 24/2009 Art. 31), and the parties can choose which version prevails (Perpres 63/2019 Art. 26). Notarial deeds are in Indonesian, and the notary must translate for you if you don't understand it (UU 2/2014 Art. 43). Sign a bilingual lease or deed and say which language prevails. A missing Indonesian version isn't by itself grounds to cancel a contract without bad faith (SEMA 3/2023), but there's no reason to take the risk.
6. Paying cash. A lease isn't a registered land right, so it can't carry a mortgage (Hak Tanggungan). A Hak Pakai home can be mortgaged by law, but only a few banks lend to foreigners. Most leasehold buyers pay in cash or in developer instalments.
7. A company, if you use one. A PT PMA needs at least IDR 2.5 billion paid-up capital, quarterly LKPM reports and monthly and annual tax filings (Peraturan BKPM 5/2025; UU KUP), so it comes with an accountant every year.

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