Bali Property Taxes: Newest Complete Guide

indonesian tax guide for foreigner
Bali Property Taxes: A Complete Guide for 2025

Understanding property taxes in Bali is essential for anyone involved in buying, selling, or owning real estate. Indonesia’s tax system, while structured, can be intricate and occasionally updated by new regulations. Having a solid grasp of how each tax works will help you remain compliant, make informed decisions, and protect your investment.

This enhanced 2025 guide provides an in-depth overview of all major property taxes in Bali, including applicable rates, calculation methods, and key obligations for both local and foreign investors.

Types of Property Taxes in Bali

NoTax TypeWho PaysRateWhen It AppliesExample
1Land and Building Tax (PBB)Property owner±0.1%AnnuallyA villa with an NJOP of IDR 310,000,000 results in an annual PBB of around IDR 310,000.
2Acquisition Duty on Land and Buildings (BPHTB)BuyerUp to 5%Upon ownership transferBuying a property for IDR 1.2 billion with an NPOPTKP of IDR 60 million results in BPHTB of IDR 57 million.
3Final Income Tax (PPh Final)Seller2.5% (freehold)Before AJB signingSelling a freehold villa for IDR 2 billion means the seller pays IDR 50 million in PPh Final.
4Value-Added Tax (VAT / PPN)Buyer12% (from 2025)Purchase from developerBuying a new villa with a building value of IDR 1 billion results in VAT of IDR 120 million.
5Tax on Rental IncomeProperty owner10% / 20%During rental periodA foreign owner earning IDR 300 million per year in rent pays up to IDR 60 million in withholding tax.
6Construction TaxContractor2–4%During constructionA construction contract worth IDR 1 billion results in a construction tax of IDR 20–40 million.
7Luxury Goods Sales Tax (PPnBM)Buyer (first sale)±20%First sale of luxury propertyA luxury villa sold by a developer for IDR 5 billion may incur PPnBM of around IDR 1 billion.
8Name Change Tax (BBN)Buyer±1%Title certificate updateTransferring ownership on a property valued at IDR 2 billion may cost around IDR 20 million in BBN.

There are several different kinds of property taxes in Bali. Each tax serves a specific purpose and comes with its own rates, calculation methods, and legal obligations. Being familiar with these taxes can help you plan your investment wisely, avoid unexpected costs, and ensure full compliance with Indonesian regulations.

Here are some of the most common property taxes you should be aware of:     

type of property taxes in bali

Tax Payment Obligations

To avoid penalties or legal issues, it is important to pay property taxes on time:

  • PBB is paid annually before the deadline set by the local government.

  • BPHTB and PPh Final must be paid before title transfer at the BPN office.

  • PPN and PPnBM are paid at the time of property purchase.

  • Rental income tax should be paid regularly and declared in your tax filings.

FAQ: Newest Property Bali Tax

NoQuestionAnswers
1What types of property taxes are there in Bali?Property taxes in Bali include Land and Building Tax (PBB), Acquisition Duty (BPHTB), Final Income Tax (PPh Final), VAT/PPN, Rental Income Tax, Construction Tax, Luxury Goods Sales Tax (PPnBM), and Name Change Tax (BBN).
2How is Land and Building Tax (PBB) calculated?PBB is calculated based on the government-assessed property value known as NJOP. The tax is generally calculated as (NJOP minus NJOPTKP) multiplied by the applicable rate, usually around 0.1%.
3Who pays BPHTB and when is it due?BPHTB is paid by the buyer and must be settled before the transfer of ownership is registered at the National Land Agency (BPN).
4What is Final Income Tax (PPh Final)?Final Income Tax is paid by the seller on property sales. The rate is 2.5% for freehold properties and 10% for leasehold properties with NPWP, or 20% without NPWP.
5When does VAT (PPN) apply to property purchases?VAT applies when purchasing property from a developer or corporate seller. Starting 1 January 2025, the VAT rate is 12% and applies to the building value only.
6Is rental income from property in Bali taxable?Yes. Rental income is subject to tax under PPh Pasal 4(2). Indonesian residents pay a final 10% on gross rental income, while foreign owners are generally subject to 20%, subject to tax treaty reductions.
7What is Construction Tax?Construction services are subject to a final income tax of around 2–4% of the contract value, applicable to both residential and commercial projects.
8What is Luxury Goods Sales Tax (PPnBM)?PPnBM is a tax of approximately 20% applied to luxury properties such as high-end villas when sold by developers to the first buyer.
9What is Name Change Tax (BBN)?Name Change Tax is charged when updating the property title certificate to the buyer’s name and is usually around 1% of the property value.
10When should property taxes be paid?PBB is paid annually. BPHTB and PPh Final must be paid before title transfer at BPN. VAT and PPnBM are paid at purchase, while rental income tax should be paid and reported regularly.
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Final Thoughts

A thorough understanding of Bali’s property tax system is crucial for anyone involved in real estate transactions on the island. With the right information, you can manage your finances effectively, stay legally compliant, and ensure your property investment runs smoothly. Always seek advice from a licensed tax consultant or notary to receive guidance tailored to your specific situation.

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