What a Bali Villa Really Costs to Buy and Own: BPHTB, VAT, Notary Fees, PBB and Rental Tax
On a Bali purchase with a registered title, such as a Hak Pakai or a strata apartment, the buyer pays acquisition duty (BPHTB) of up to 5% and VAT if the seller is a VAT-registered developer (an effective 11% for most new homes in 2026), and the land deed official’s fee, which the law caps at 1% of the transaction value, comes on top. The seller pays a 2.5% final income tax. Once you own, the annual land and building tax (PBB) runs at up to 0.5% of the assessed value, and rental income carries its own tax plus a regional tax of up to 10% on accommodation.
Two caveats run through all of it. First, BPHTB and PBB are regional taxes. The national law sets ceilings and minimum allowances, and each regency (Badung, Gianyar, Tabanan, Denpasar) sets its own figures, so the rates below are “up to” figures. Second, most foreign buyers in Bali take a leasehold, and several leasehold questions are still open. We flag them where they apply.
Everything here reflects the rules as of mid-2026. It is a map for budgeting, not tax advice.
At purchase: the buyer’s acquisition duty (BPHTB)
BPHTB is paid by the person acquiring the property at up to 5% of the greater of the transaction value and the government-assessed value (NJOP), after deducting a non-taxable allowance. Under the 2022 regional-finance law (UU 1/2022, known as HKPD), that allowance is at least IDR 80 million for an ordinary acquisition and IDR 300 million for inheritance or a grant within the family. Regions may set it higher, and it applies to the first acquisition in that region.
The duty applies to acquisitions of Hak Milik, HGB, Hak Pakai, strata title (HMSRS) and HPL, whether by sale, grant, inheritance or the grant of a new right. A lease (Hak Sewa) is not on that list, but nothing expressly takes it outside BPHTB either. Do not treat that as a rule, and be wary of anyone selling you a leasehold who does.
To show the scale at the top rate: on a landed house at the Bali foreign-buyer floor of IDR 5 billion, assuming the transaction value is above the NJOP and the allowance is the national minimum, the duty would be 5% of IDR 4.92 billion, or IDR 246 million. That is arithmetic on the ceiling, not a quote. Your regency’s rate and allowance decide the real figure.
VAT on new builds, and the 2026 incentive
From 1 January 2025 Indonesia’s headline VAT rate is 12%, but for everything except luxury goods it is charged on a tax base of 11/12 of the price, so the effective rate is 11% (PMK 131/2024). The full 12% applies only to goods subject to luxury-goods sales tax, which includes homes priced at IDR 30 billion or more. Houses and apartments at or above IDR 30 billion also bear a 20% luxury-goods sales tax (PPnBM), a threshold in place since 2019. A separate 1% income tax applies to “very luxurious” homes above a floor-area threshold, so ask your adviser whether a large house is caught.
VAT is charged by VAT-registered sellers, which in practice means developers. A resale between two private individuals is not normally a VAT event.
The government-borne VAT incentive (PPN DTP)
For 2026, PMK 90/2025 has the government bear 100% of the VAT on the first IDR 2 billion of the price of a brand-new, ready-to-occupy landed house or apartment priced at no more than IDR 5 billion, delivered for the first time by the developer. The deed of sale or a fully paid PPJB, and the handover, must both fall between 1 January and 31 December 2026, and the incentive is limited to one unit per individual. Foreign nationals with an Indonesian tax number (NPWP) who meet the foreign-ownership rules were eligible under the 2025 version of the rule and remain eligible under PMK 90/2025.
In Bali the overlap is narrow. A foreigner’s minimum price for a landed house is IDR 5 billion, the same as the incentive’s ceiling, so a house qualifies only at exactly that price. Apartments, with an IDR 2 billion floor, can qualify. Leasehold villas are not the first delivery of a house with title, so do not budget on the incentive for a leasehold. The Finance Minister announced on 14 October 2025 that the incentive would run to the end of 2027. Treat 2027 as announced, not in force, until the implementing regulation is issued.
Notary and PPAT fees
The land deed official’s fee, including witnesses, may not exceed 1% of the transaction value stated in the deed (PP 24/2016 Art. 32(1)), with lower caps for larger tranches, for example 0.75% for the part between IDR 500 million and IDR 1 billion. Separate services such as certificate checks and registration are billed on top.
Notary fees on lease deeds and PPJBs have no fixed scale. They are negotiated, so ask for a written quote that lists every service before you instruct the notary.
The seller’s income tax, and what happens when you resell
The seller of land or buildings pays a 2.5% final income tax (PPh) on the greater of the gross transfer value and the government-assessed value, under PP 34/2016. The PPAT may sign the deed only after this tax and the buyer’s BPHTB have been paid. As a buyer, this protects you: a properly run transfer cannot close with the seller’s tax unpaid.
When you later sell a registered title, the roles reverse: you pay the 2.5%, your buyer pays BPHTB, and VAT applies only if the seller is a VAT-registered business.
Selling a leasehold is less clear. How an assignment of a lease is taxed is not settled, including whether the 2.5% under PP 34/2016 applies to it at all. Ask a tax adviser before you buy, because the answer shapes your exit.
The annual cost of owning: PBB
The land and building tax (PBB-P2) is a regional tax charged at up to 0.5% of the assessed value (NJOP), after a non-taxable NJOP of at least IDR 10 million, under UU 1/2022. The yearly bill is called the SPPT PBB, and checking that past bills have been paid is part of due diligence on any plot.
Under a lease, who pays PBB is a matter for the contract, with no statutory rule to fall back on, so make sure the deed says it.
Other running costs, such as maintenance, management or insurance, depend on the property and the operator.
Tax on rental income
For resident landlords, individual or corporate, rent from land and buildings is taxed at 10% final on the gross rent under PP 34/2017, and companies, permanent establishments and appointed payers must withhold it.
For a non-resident individual without a permanent establishment in Indonesia, villa rent falls under Article 26, which withholds 20% of the gross rather than the 10% final rate. Treaties can reduce Article 26 withholding in general, but their property article leaves Indonesia’s domestic rate in place for rent. Plan on 20% of gross unless your tax adviser confirms otherwise.
Short-term villa rental run as a business is a different category: accommodation business income, normally earned through a licensed operator or a PT PMA, not passive rent. On top of income tax, a regional tax on accommodation services (PBJT) of up to 10% applies to payments for villas, homestays, guest houses and private homes used as hotels, and rental operators collect it. Our article on renting out a villa in Bali legally covers the licences.
All the costs in one table, and the currency you pay them in
| Cost | Who pays | Rate (as of 2026) | Applies to |
|---|---|---|---|
| BPHTB acquisition duty | Buyer | Up to 5% of the greater of price and NJOP, less at least IDR 80 million | Registered rights (Hak Pakai, HGB, strata); leases not on the list, position unsettled |
| VAT on a new build | Buyer, charged by the developer | Effective 11%; 12% for homes of IDR 30 billion or more | Sales by VAT-registered sellers |
| PPnBM luxury tax | Charged on the sale | 20% | Homes of IDR 30 billion or more |
| PPN DTP incentive (2026) | Government bears the VAT | 100% of VAT on the first IDR 2 billion | New, ready homes up to IDR 5 billion with title |
| PPAT fee | Agree it in writing | Up to 1% of the deed value, lower on larger tranches | Deeds of sale and grant deeds |
| Notary fee on a lease or PPJB | Agree it in writing | No fixed scale; negotiated | Lease deeds, PPJBs |
| Seller’s final income tax | Seller | 2.5% of the greater of price and NJOP | Transfers of land and buildings; lease assignments unsettled |
| PBB land and building tax | Owner, or per the lease | Up to 0.5% a year of NJOP | All land and buildings |
| Rental income tax, resident | Landlord | 10% final on gross rent | Rent of land and buildings |
| Rental income tax, non-resident | Landlord, by withholding | 20% of gross (confirm with an adviser) | Non-residents without a permanent establishment |
| PBJT accommodation tax | Charged on accommodation payments, collected by the operator | Up to 10% | Villas and homes let as accommodation |
Paying in rupiah
Bank Indonesia’s regulation PBI 17/3/PBI/2015 requires the rupiah for cash and non-cash transactions in Indonesia and requires businesses to quote prices only in rupiah, with exceptions such as international trade and foreign-currency bank deposits. For non-cash breaches, sanctions include a fine of 1% of the transaction value, capped at IDR 1 billion. Bali villas aimed at foreign buyers are often marketed in US dollars, but the price in your contract, and the base on which the taxes above are calculated, should be in rupiah. Exchange-rate movements between reservation and completion are your risk to plan for.
What to check before you budget
- Which right you are buying, because BPHTB, the VAT incentive and the 1% PPAT cap attach to registered titles, and the leasehold position on several of them is unsettled.
- The regency’s BPHTB rate and allowance, and the NJOP of the plot, from the notary.
- Whether the developer is VAT-registered, whether the price includes VAT, and whether the unit genuinely qualifies for the 2026 incentive.
- A written fee quote from the notary or PPAT, listing every service.
- Who pays PBB under your lease, and proof that past PBB bills are paid.
- Your residence status for tax, and an adviser’s view on the 10% or 20% question before you count any rental income.
- How a future sale of your lease would be taxed.
For the structures behind these taxes, read what foreigners can own in Bali, and for the tax gaps specific to leases, see our leasehold guide. You can browse our Bali listings, and our Indonesia page explains how we work.
