Taxation and Financial Considerations for Bali Property Investors

Key Taxes on Property Ownership

All property owners must pay an annual PBB (land and building tax) of 0.5% of the government-assessed value (NJKP).

Buying and Selling Taxes

• HGB properties: 2.5% buying tax and 5% selling tax.
• Leasehold properties: 10% selling tax.

Corporate Tax for PT PMAs

For foreign investors operating under a PT PMA, a 0.5% revenue tax applies for companies under 4.8 billion IDR (~€280,000) annual revenue. Beyond this, a 10% corporate income tax is levied on net profit.

Dividend tax for non-residents is 20%, though treaties with some countries lower this to 10%.

Short-Term Rental Tax

Daily rentals are subject to a 10% local government hotel tax, collected from guests.

Financing Options

Foreigners face limited financing options, but PT PMA loans are available, typically with interest rates of 7–12% and maximum terms up to 25 years (depending on the bank).

Investor Viewpoint

Understanding Bali’s tax landscape is crucial for accurate ROI calculations. Partnering with advisory firms ensures all fiscal and legal obligations are met, protecting long-term profitability.