Bali Property Tax and Buying Costs: Who Pays What

Bali property tax explained: who pays BPHTB, the seller’s 2.5% tax, notary fees, VAT and the 10% lease tax, with worked examples for 2026.

Bali property tax is not one tax but several, and which ones apply depends on what you buy. On a freehold or Hak Pakai (right of use) purchase, the buyer pays a regional transfer duty of up to 5% and the seller a 2.5% income tax; a leasehold has no transfer duty, but the owner owes 10% of the lease price. Here is each tax and fee as of October 2026, with worked examples.

Bali property tax at a glance: who pays what

Indonesia has no single property tax. A purchase triggers BPHTB (Bea Perolehan Hak atas Tanah dan Bangunan, the land and building acquisition duty) for the buyer, a final income tax (PPh) for the seller, and fees for the deed, drawn up by a PPAT (Pejabat Pembuat Akta Tanah, land deed official), and for registration at the land office (BPN). A lease triggers no BPHTB; the main tax is the owner’s 10% income tax, plus stamp duty on the signed contract.

A contract can shift who bears a cost, but not who owes a tax by law, and the PPAT and land office fees are split as agreed. Foreigners cannot hold Hak Milik: they buy a house on Hak Pakai, while companies such as a PT PMA (foreign-owned company) hold HGB. Our guide to buying property in Bali as a foreigner explains the options.

What you pay on a freehold or Hak Pakai purchase

BPHTB: the buyer’s transfer duty

BPHTB is Indonesia’s property transfer tax. Whoever acquires Hak Milik, HGB or Hak Pakai pays it, whether an existing right is transferred or a new one is granted, such as Hak Pakai over an Indonesian owner’s land. Law 1/2022 caps the rate at 5%, and each regency sets its own rate and deduction in a regional regulation (Perda). Badung’s is Perda 7/2023; Tabanan has its own.

The formula is BPHTB = rate × (taxable value − non-taxable amount). The taxable value is the actual price, or the NJOP (Nilai Jual Objek Pajak, the government-assessed value used for the yearly land tax) if that is higher or the price is unknown. So declaring a lower price than you pay is no legitimate saving. The non-taxable amount (NPOPTKP) is at least IDR 80 million for your first acquisition in that regency, and at least IDR 300 million for an inheritance or testamentary gift between parents, children and spouses.

For a sale, BPHTB becomes due by law when the binding sale agreement (PPJB, Perjanjian Pengikatan Jual Beli) is signed, not only at the final deed.

The seller’s 2.5% income tax

The seller pays a final income tax of 2.5% of the gross transfer value under Government Regulation (PP) 34/2016, whether the sale makes a profit or not. Exemptions cover inheritance, certain gifts within the direct family, and transfers under IDR 60 million by sellers with income below the tax-free threshold. The land office registers a transfer only with proof of this payment, and in practice the PPAT checks both the seller’s tax and the buyer’s BPHTB before the deed of sale (AJB, Akta Jual Beli) is signed. Selling instead? See our guide to selling property in Bali.

Notary, PPAT and land office fees

• PPAT fee for the deed of sale: at most 1% of the price (PP 24/2016). A 2021 land ministry regulation lowers the cap to 0.75% above IDR 500 million, 0.5% above IDR 1 billion and 0.25% above IDR 2.5 billion.
• Notary fee for a PPJB or notarial lease: at most 2.5% of the deed’s value up to IDR 100 million, 1.5% up to IDR 1 billion and 1% above that (Law 30/2004 on notaries, art. 36). The law sets no minimum (the notaries’ association sets regional minimum fees), and fees are often below the cap.
• Land office transfer fee: (1‰ × land value) + IDR 50,000, using the land office’s zone value or, where there is none, the NJOP.
• Certificate check at the land office: IDR 50,000. Stamp duty: IDR 10,000 per signed document.

These caps are maximums, not price lists. Compare two or three written quotes and ask what each includes.

How is a leasehold taxed in Bali?

A leasehold carries no BPHTB, because a lease (sewa) is not among the land rights whose acquisition Law 1/2022 (art. 44) makes subject to BPHTB. Instead, the owner owes a 10% final income tax on the full lease price under PP 34/2017. A designated withholder, such as an Indonesian company (including a PT PMA), withholds it; otherwise, for example with a private individual as lessee, the owner pays it directly.

On a lease paid upfront, the tax is owed when the payment is made or falls due, whichever comes first. The base is everything the lessee pays under any name, including maintenance, security or service charges, even under a separate contract.

Designated withholders include Indonesian companies (a PT PMA too), permanent establishments and government bodies: they deduct the tax, pay it and give the owner a withholding slip. A private individual, such as a foreigner leasing in his or her own name, does not withhold.

This leasehold tax in Bali is legally the owner’s, but the contract can say who carries the cost. Before you agree a price, ask whether it includes the owner’s 10%, write down who pays it and ask for the payment proof. A notarial deed is optional, but it gives stronger proof. If a lease is later converted into a Hak Pakai or HGB grant, BPHTB applies to that grant. More in our guide to leasehold vs freehold in Bali.

Buying a new villa from a developer: VAT and luxury tax

A VAT-registered seller (PKP, Pengusaha Kena Pajak), typically a developer selling a new villa, adds VAT (PPN). A private owner selling a second-hand home does not. BPHTB, the PPAT fee and the seller’s 2.5% tax apply as in any sale.

• VAT: 12% by statute since January 2025, but charged on 11/12 of the price for everything except luxury goods, so effectively 11% on a normal home.
• Luxury homes: at IDR 30 billion or more, the full 12% VAT plus a 20% luxury-goods sales tax (PPnBM).
• 2026 incentive: under Finance Minister Regulation (PMK) 90/2025, the government pays the VAT on the first IDR 2 billion of new homes priced up to IDR 5 billion. The home must be new, ready to live in, handed over for the first time by a VAT-registered seller and carry a house identity code, with the deed (or a fully paid PPJB) and the handover both in 2026. Each person can use it for one home.

Whether the incentive continues in 2027 depends on a new regulation, so check before you plan around it. Also ask whether the developer’s price includes VAT.

Worked example: buying costs in Bali in numbers

Example 1: an IDR 5 billion villa from a private owner (freehold, or Hak Pakai for a foreign buyer). Our assumptions: the NJOP is below the price; BPHTB at the 5% maximum with the minimum IDR 80 million deduction; a land value of IDR 3 billion; the PPAT fee at its cap, reading the 0.25% top rate as applying to the whole price (confirm with your PPAT). Your regency’s real figures may differ.

If the buyer pays the PPAT and land office fees, the buyer’s taxes and fees total about IDR 261.6 million, or 5.2% of the price, plus legal checks and a notary fee if a PPJB comes first (at most 1%, so IDR 50 million). The seller’s IDR 125 million comes out of the sale proceeds. Bought new from a developer in 2026 with the VAT incentive, the villa would carry VAT only on the part above IDR 2 billion: 11% × IDR 3 billion = IDR 330 million, on top of a price quoted before VAT.

Example 2: a 25-year lease for IDR 3 billion, paid upfront by a private individual. No BPHTB applies.

Had the lessee been a company such as a PT PMA, it would have withheld the IDR 300 million and paid it to the tax office for the owner.

When is each tax paid?

BPHTB is due by law when the PPJB is signed, and in practice both BPHTB and the seller’s tax are paid before the deed of sale. Registration fees follow, the lease tax is owed when the rent is paid, and the land tax comes every year. Ask your PPAT when your regency expects the BPHTB.

Yearly costs of owning property in Bali

The yearly property tax is PBB-P2 (Pajak Bumi dan Bangunan Perdesaan dan Perkotaan, land and building tax), billed by the regency on an annual notice (SPPT). By law the rate is at most 0.5%, and lower for food-production land. It applies to the NJOP minus at least IDR 10 million, of which the regency taxes 20% to 100%. NJOPs are usually reset every three years.

As a ceiling, an NJOP of IDR 3 billion at the maximum settings gives 0.5% × (IDR 3 billion − IDR 10 million) = about IDR 15 million a year; your SPPT shows the real rate and base. In Badung, a 2024 regent’s regulation (Perbup 28/2024, which replaced earlier relief rules from 2019 and 2020) automatically deducts any increase over the previous year’s bill, so the bill normally stays at last year’s level unless, for example, the building has been enlarged or changed. Ask Bapenda Badung whether it applies to your property. In a leasehold, the lease should say who pays PBB.

Other running costs, such as maintenance, pool and garden care, staff, insurance, utilities and any banjar (village community) contributions, vary too much for one figure. Ask the seller for recent bills.

What taxes do you pay when you rent your property out?

Rent carries a 10% final income tax on the gross amount, and villas let as accommodation can also owe a regional tax of up to 10%. Where monthly and yearly villa rentals fall is not fully settled, so get advice before you start.

• Rent tax: PP 34/2017 sets no minimum term, so monthly and yearly leases are covered, service charges included. A designated withholder, such as an Indonesian company tenant, withholds it; with a private tenant, you pay it yourself through the tax office’s Coretax system. A yearly rent of IDR 300 million means IDR 30 million of tax. Income from providing lodging services is excluded and taxed under the normal income tax rules.
• PBJT (regional tax on certain goods and services): it covers hotel services and expressly lists villas and private homes used as hotels, at up to 10%, with no minimum stay in the law. Whether monthly and yearly villa rentals count is not settled, and Badung has registered villas run as businesses behind a “private home” label as regional taxpayers. Ask Bapenda or a tax consultant.
• Licensing and use: a Hak Pakai house is meant for living in, and renting out raises licensing questions. See our guide to renting out a villa in Bali.
• Tax number: foreigners must register for an NPWP once they are tax-resident (more than 183 days in Indonesia within 12 months, or living here with the intention to stay) and earn income such as rent. If you are not tax-resident, ask a registered tax consultant how rent tax applies to you.

Foreign tourists pay Bali’s tourist levy themselves (IDR 150,000 each time they enter Bali, unchanged as of October 2026 as far as we could find; KITAS and KITAP holders are exempt). It is not a tax on owners.

How to avoid surprises

1. Get a written cost estimate first. Ask the notary/PPAT to list every tax and fee, who pays it and when, at your regency’s actual rate. When you buy through us, we ask the notary for this full estimate before you commit.
2. Check the land tax. Ask for the latest SPPT and proof of payment for recent years, and have the notary confirm there are no arrears.
3. Put the split in writing. The PPJB or lease should say who pays BPHTB, the seller’s tax, the 10% lease tax, each fee and any PBB arrears.
4. Check the value. Compare the price with the NJOP, and confirm you get the deduction for a first acquisition in that regency.
5. Keep the proofs: BPHTB and income tax payment slips, and any withholding slip for lease tax.
6. Plan rentals before you buy: get advice on rent tax, PBJT and licensing first.

Taxes are only one part of the checks; our guide to due diligence on Bali property covers the rest. When you are ready, browse our villas for sale and land for sale.