Bali Property Taxes: A Complete Guide for 2025

Understanding property taxes in Bali is crucial for anyone planning to buy, sell, or own real estate on the island. With a tax system that is both complex and subject to change, having accurate, up-to-date knowledge can help you avoid costly legal and financial pitfalls.

This article breaks down the main types of property taxes in Bali, how each is calculated, and your responsibilities as a taxpayer. Read on to discover what every informed property owner in Bali should know before making their next move.

Types of Property Taxes in Bali

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:

1. Land and Building Tax (PBB)

The Land and Building Tax (PBB) is an annual tax on property owners, calculated based on the government-assessed market value called Nilai Jual Objek Pajak (NJOP). 

NJOP is updated every 3 years but can be adjusted yearly if property prices rise significantly. It is determined by comparing similar properties, potential income, or construction costs.

To calculate NJOP, multiply the land and building areas by their respective NJOP per square meter, then add them together.

Example:

• Land: 80 m² × IDR 2,000,000 = IDR 160,000,000

• Building: 50 m² × IDR 3,000,000 = IDR 150,000,000

• Total NJOP = IDR 310,000,000

The PBB tax is then a percentage of this NJOP.

You can check NJOP at your local district office or through official government websites.

2. Acquisition Duty on Land and Buildings (BPHTB)

BPHTB is a one-time tax imposed when ownership rights over land or buildings are transferred, such as through purchase, inheritance, or grant. The tax rate can be up to 5% of the transaction value or the assessed property value (NPOP), whichever is higher. This tax is paid by the buyer and must be settled before the title transfer is registered with the National Land Agency (BPN). 

There is a 100% exemption from BPHTB under certain conditions: the acquisition must be the first-time transfer of rights (including sale, purchase, inheritance, or granting of new rights), the property must be a landed house, the transaction value or NPOP does not exceed IDR 2 billion, and the buyer must be an individual. This exemption can also apply when rights are acquired by multiple individuals, such as in cases of inheritance.

3. Final Income Tax (PPh Final)

Final Income Tax (PPh Final) is imposed on the seller of a property as a final settlement on the gain from that sale. For freehold properties, the rate is 2.5% of the gross selling price, and this payment discharges the seller’s income tax liability on the transaction. 

For leasehold properties, sellers with an Indonesian Tax Identification Number (NPWP) face a 10% rate, while those without NPWP are subject to 20%. Payment must be made (and proof of payment submitted) before the Sale and Purchase Deed (AJB) can be signed and registered at the National Land Agency (BPN).

Source: Pexels

4. Value-Added Tax (VAT/PPN)

VAT (PPN) applies when buying new property from developers or corporate entities, and is borne by the buyer. Effective 1 January 2025, the statutory rate increases from 11% to 12%, following PMK-131/2024 under the Harmonization of Tax Regulations Law.

5. Tax on Rental Income

Income from leasing property in Bali is taxable under PPh Pasal 4(2). Local residents pay a final 10% on gross rental income, withheld and remitted by the lessee or by the owner if the lessee is not a withholding agent. 

Non-resident individuals (foreign investors) are subject to a 20% withholding tax on gross rental income, although this rate may be reduced under an applicable Double Taxation Avoidance Agreement (DTAA). Payments must be made regularly, typically monthly or quarterly, and declared in the annual tax return.

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.

Source: Pexels

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.

For more practical advice on navigating Bali’s property market, check out Smart Tips for Buying Property in Bali. It’s a helpful resource to guide you through every step of your property journey.