Four taxes decide what a foreign owner pays on a Bali villa. An acquisition duty of up to 5% (BPHTB) when a registered title changes hands. A 10% final tax on every lease payment (PPh 4(2)). The regency’s annual land and building tax (PBB-P2). And income tax on rent, which for a non-resident runs at 20% under Article 26. Which of them apply depends on the right being bought. The one most often misread is the 10% on a lease: by law it is the landowner’s income tax, in the market it is priced into what the buyer pays, and the guides describe only the second.
Rates below are the statutory ones, with the regency rules for Badung, Gianyar and Denpasar, where most of the Bali real estate that foreigners buy sits. For each tax, who owes it by law is given separately from who tends to end up paying it. The two are rarely the same person.
In short
- A leasehold purchase carries no acquisition duty. The 10% on the lease is the landowner’s income tax, unless the contract moves it.
- A Hak Pakai or HGB purchase carries BPHTB of up to 5%, and the IDR 80 million tax-free allowance (NPOPTKP) applies only to a buyer’s first acquisition in that regency.
- Annual PBB in Badung is 0.1% or 0.2% of assessed value. In Gianyar a villa run as a business can be taxed at 0.4% or 0.5%.
- Short stays carry a 10% regional hotel tax on top of income tax. A non-resident pays 20% of gross rent, and no tax treaty reduces it.
- Selling a title costs the seller 2.5%. Selling a leasehold is taxed as income, and the rate turns on residency, not on paperwork.
When you buy: taxes and fees at acquisition
Hak Pakai, or HGB held through a company, is a registered right, and transferring it carries the acquisition duty. A lease is a contract. None of the title taxes attach to it. That is the whole basis of the leasehold’s reputation for being cheap to buy, and the table shows how far the reputation holds.
| Cost | Rate and base | Who owes it by law | Applies to |
|---|---|---|---|
| BPHTB, acquisition duty | 5% in Badung, Gianyar and Denpasar, on the price or the assessed value (NJOP) if higher, after a tax-free allowance (NPOPTKP) of IDR 80 million on the buyer’s first acquisition in the regency; IDR 300 million where the acquisition is an inheritance or bequest within the family | Buyer, due when the binding sale agreement (PPJB) is signed, before the transfer deed (AJB) | Hak Milik, HGB, Hak Pakai, strata title. Not a lease |
| Final income tax on a transfer (PPh 4(2), Government Regulation 34 of 2016) | 2.5% of the gross transfer value | Seller, paid before the deed; the deed official may not sign without proof | Transfers of title |
| Final income tax on rent of land and buildings (PPh 4(2), Government Regulation 34 of 2017) | 10% of everything paid under the lease, including a 25-year term paid upfront | Landowner. A private buyer does not withhold; the landowner pays and reports it. A company that leases withholds the 10% and pays it over | Leasehold |
| VAT | 12% on 11/12 of the price, an effective 11% (Minister of Finance Regulation 131 of 2024); the full 12% only on property subject to luxury tax | Charged by a VAT-registered seller, which registration becomes compulsory above IDR 4.8 billion of turnover | New property from a developer. Not a resale between private individuals |
| PPnBM, luxury sales tax | 20% | Collected by the developer on first delivery | Houses and apartments priced at IDR 30 billion or more |
| PPh 22 on very luxury residences | 1% of the price, creditable against the buyer’s income tax | Collected by the corporate seller on first sale | Houses above IDR 30 billion or above 400 square metres of building; apartments above IDR 30 billion or 150 square metres |
| Land deed official (PPAT) fee | Capped by Minister of ATR/BPN Regulation 33 of 2021: 1% up to IDR 500 million, 0.75% to 1 billion, 0.5% to 2.5 billion, 0.25% above | As agreed | Deeds of transfer |
| Notary fee | Capped by the Notary Law (Article 36): 2.5% up to IDR 100 million, 1.5% to 1 billion, by agreement and at most 1% above | As agreed | Lease deeds and other notarial acts |
| Land office registration | 0.1% of the land value plus IDR 50,000 (Government Regulation 128 of 2015) | Buyer | Registration of a transfer |
| Stamp duty | IDR 10,000 per document | As agreed | Every deed |
Two details in the BPHTB row changed with Law 1 of 2022 on regional taxes, and the guides have yet to catch up. First, the IDR 80 million allowance is granted once, on a taxpayer’s first acquisition in a regency (Article 46). A second villa in Badung is taxed from the first rupiah. Second, the duty falls due on the day the binding sale agreement is signed (Article 49), before the transfer deed. The money is needed earlier than the closing date, and the deed official will want the receipt in hand, since under the 2023 implementing regulation signing without it costs the official IDR 10 million per deed. Officials do ask.
The 40% or 20% assessment ratio (NJKP) that older calculations multiply into the base went with the same law. If a worked example you are reading has “× 40%” in it, it predates 2022. One more item the listicles carry is a “BBN” or name-transfer fee of about 1%. No such charge exists on land; the term belongs to vehicle registration.
On VAT the statute says 12% and the invoice says 11%. Since January 2025 the base for non-luxury goods has been eleven twelfths of the price, which is how the headline rate went up without the bill going up. There is also a 2026 relief, under Minister of Finance Regulation 90 of 2025: the state bears the VAT on the first IDR 2 billion of a new house priced up to IDR 5 billion, one unit per person, on first handover. A foreigner with a tax number qualifies if the purchase meets the foreign-ownership rules.
In Bali that is a narrow door.
The foreign-ownership price floor for a house is also IDR 5 billion, so the relief and the floor meet only at the boundary, and a villa purchase will rarely fit inside. The finance minister said in October 2025 that the relief would run to the end of 2027, and the 2027 package announced on 1 October 2026 keeps it. The regulation for 2027 itself has not appeared.
The same IDR 5 billion villa, bought two ways
Take a villa at IDR 5 billion, about USD 280,000 and the floor for a foreign-held house under Hak Pakai in Bali. Bought as a registered title, as a first acquisition in the regency: BPHTB of 5% on IDR 4.92 billion, which is IDR 246 million. Add the deed official’s fee, capped at 0.25% or IDR 12.5 million, and registration at IDR 5.05 million. The buyer’s statutory outlay comes to about IDR 264 million, close to USD 14,700. The seller separately owes IDR 125 million at 2.5%.
Now the same villa on a 25-year lease. No duty, no registration, a notary fee capped at IDR 50 million, and stamp duty. What the lease does carry is IDR 500 million of final tax on the rent, which the law puts on the landowner. Priced “net of tax”, with the buyer agreeing to cover it, the buyer is out IDR 550 million, about USD 30,700. More than double the cost of buying the title.
That split of the 10% is the single largest item a lease buyer negotiates, and it belongs in the price discussion before any deposit.
Too many contracts settle it at the notary’s desk, with the deposit already paid.
While you own it: the annual land and building tax
PBB is a regency tax on the assessed value of land and building, the NJOP, which the regency sets and revalues itself. Law 1 of 2022 caps the rate at 0.5% and requires a revaluation at least every three years (Article 40); each regency sets its own tiers beneath the cap. Badung, Gianyar and Denpasar have each done it differently.
The 0.5% the guides quote is the ceiling. Of the three regencies only Gianyar’s commercial tier reaches it, and that is the one line in the table an Ubud owner should read twice.
| Regency | Rate on assessed value | Tax-free portion | Regulation |
|---|---|---|---|
| Badung (Canggu, Seminyak, Uluwatu, Jimbaran) | 0.1% up to IDR 1 billion; 0.2% above | IDR 26 million | Regional Regulation 7 of 2023, Articles 7 and 8 |
| Gianyar (Ubud) | Residential: 0.1% up to IDR 3 billion, 0.2% above. Commercial use: 0.4% up to IDR 3 billion, 0.5% above | IDR 10 million | Regional Regulation 7 of 2023, Articles 6 and 8 |
| Denpasar (Sanur) | 0.1% up to IDR 1 billion; 0.2% above | IDR 15 million | Regional Regulation 5 of 2023, Articles 6 and 8, in force since January 2024 |
On an assessed value of IDR 5 billion, Badung charges 0.2% of IDR 4.974 billion: IDR 9.9 million a year, about USD 555. The same villa in Gianyar, let to guests and classed as commercial, pays 0.5% on IDR 4.99 billion. IDR 25 million, about USD 1,390, two and a half times as much for the same house. Which tier applies is the regency’s decision, printed on the annual bill, the SPPT.
Badung’s rate did not change for 2026, whatever the bills suggest. The amending regulation in force since 1 January 2026 (Regional Regulation 8 of 2025) touches definitions, one exemption clause and the service charges. The rate, the allowance and the BPHTB articles it leaves alone. So where did the jump in 2025 bills come from? A revaluation of assessed values in Kuta, Kuta Utara and Kuta Selatan under two regent’s regulations on NJOP (27 of 2024 and 11 of 2025), softened by an automatic reduction scheme in a third (28 of 2024). The regency said at the time that owner-occupied homes would see no increase. Villas let to guests were not the homes it meant.
Who is the taxpayer? On paper, whoever holds a right over the property, owns it, controls it or benefits from it, which on a lease describes both parties. The bill goes to the registered holder, on a leasehold villa the landowner, and the lease contract usually passes the amount to the lessee. The regency sets the due date, at most six months from the day the bill is sent. Keep the receipts: an unbroken record of payment is asked for at any later transfer.
When you rent it out: three layers
Letting a villa to guests brings in three separate charges, and none replaces another. A regional tax on the guest’s bill. National income tax on the owner’s receipts. And, where a company holds the property, corporate tax on its profit.
The regional one is the hotel-services tax, PBJT, successor to the hotel tax still widely called PHR: 10% of what the guest pays for a stay of a month or less. Villas, homestays and private residences used as hotels are on the list of taxable services in both Badung’s and Gianyar’s regulations, and the operator registers for it under a regional tax number, the NPWPD. Because the stay is taxed regionally it sits outside VAT. Bali’s IDR 150,000 tourist levy on foreign visitors (stay-permit holders exempt since July 2025) is a separate charge on the guest and has nothing to do with the operator’s tax, however often the two get added together in a listing’s small print.
| Owner | Income tax on rent | Notes |
|---|---|---|
| Non-resident individual | 20% of gross receipts (PPh 26), withheld at source | No deductions. Tax treaties leave Indonesia’s right to tax income from property intact and set no lower rate for it |
| Resident individual, long lets of a month or more without hotel services | 10% final on gross rent | The rent-of-land-and-buildings rule |
| Resident individual, short stays | Treated as business income: progressive rates of 5% to 35% on net (the 35% band starts at IDR 5 billion), or a 0.5% final tax on turnover for a small business under IDR 4.8 billion a year, which since April 2026 has no time limit for individuals and exempts the first IDR 500 million | The tax office’s published position; no binding circular settles it |
| Indonesian company (including a PT PMA) | 22% on net profit; half rate on the first IDR 4.8 billion where turnover is under IDR 50 billion | Plus 20% withholding on dividends paid abroad, which most treaties cut to 10 or 15% against a certificate of domicile |
Residency for tax starts after 183 days in Indonesia within any twelve months, or from the day of arrival if the person comes intending to reside, which is how a stay permit is usually read. Getting a tax number changes none of that. A non-resident with an NPWP is still a non-resident, withheld at 20%.
One step comes before the rate: whether the owner can lawfully receive the rent at all. A foreign individual on a personal lease has no route to the accommodation licence. In practice, then, guest income runs through a licensed operator or a company, and the tax follows whoever contracts with the guests. The licensing side is covered in Can foreigners buy property in Bali? On USD 40,000 of annual bookings the arithmetic is blunt: USD 4,000 of guest-side hotel tax, USD 8,000 of income tax for a non-resident owner, and the operator’s fee still to come.
When you sell: a title and a lease are taxed differently
Selling a registered title costs the seller 2.5% of the gross price, whatever the gain. Indonesia has no capital gains tax on property; this final tax stands in for it, and that cuts both ways. A sale at a loss pays the same 2.5%. The tax office validates the payment through Coretax, and since 21 May 2025 it issues the certificate within three working days of a complete application. Without that certificate the land office will not register the transfer.
A leasehold is sold by assigning the remaining term, and neither title tax applies. A lease is not one of the rights the acquisition duty covers, and no land right changes hands, so there is no 2.5% either. The assignment fee is the seller’s income. For a non-resident that means 20% withheld on the gross. For a resident it is either rent, taxed at the 10% final rate, or ordinary income at the progressive rates, and we found no published ruling that settles which. The treatment belongs with a tax consultant before the price is agreed, not after.
The summary that circulates, “10% with a tax number, 20% without”, gets the two outcomes right and the cause wrong. The rate turns on residency. A tax number proves nothing about that.
How much a buyer will pay for the remaining term, and what the extension clause does to that price, is a matter of contract and is covered in what happens when a Bali lease expires.
Tax numbers, Coretax and penalties
A foreigner who becomes a resident taxpayer registers for an NPWP and reports worldwide income on an annual return. A non-resident does not register. Tax on Indonesian income is handled by withholding, and since May 2025 the tax office has issued non-residents a separate identification number (NIP) for the Coretax procedures that need one. Will the land office or a regency’s BPHTB system nonetheless ask a foreign buyer for an NPWP? It varies from office to office, and we have not found a rule that settles it. Ask the notary before the deed date, not on it.
Coretax went live on 1 January 2025 and carries the monthly withholding returns and the transfer validation above. With it, under Minister of Finance Regulation 81 of 2024, a withholder’s deposit date for the 10% rent tax moved from the 10th to the 15th of the following month, the day a landowner who pays it himself already had; the return stays due on the 20th. The system is still being adjusted. On 1 October 2026 the procedure for correcting a filed return changed, and a corrected return now replaces the original in full, so a correction has to carry everything, not just the line that was wrong.
Late payment costs interest, and the rate is no longer the flat 2% a month that older pages still quote. That rule ended in 2020. Interest now runs monthly at the Ministry of Finance benchmark rate plus an uplift of up to five points, divided by twelve, for up to 24 months, and the ministry republishes the figures every month. For October 2026: 0.59% for a late payment of an assessed amount, 1.01% for a self-corrected under-payment, 2.26% for the heaviest audit finding. Law 1 of 2026, in force since 2 January 2026, converts stand-alone prison terms in the tax statutes into fine categories and leaves these interest figures alone.
Enforcement in 2026 has gone to registration, away from audit. Badung’s revenue office has been walking villa areas looking for operators without a regional tax number; in Subak Munggu in Mengwi, in September 2026, it found one registered villa. One. The national tax directorate’s Bali office, for its part, said in August 2026 that it runs no special programme against owners of rented houses and supervises by data, with the regencies sharing theirs. The figures for back taxes collected from villa owners that circulate in agent blogs have no official source behind them that we could find.
Bali property taxes: FAQ
Does Airbnb pay the taxes on my villa?
No. Airbnb pays out the price net of its own fee, and nothing has been settled out of it. The 10% hotel tax and the income tax are both the operator’s to register for and pay. The base is the gross, before the platform fee, which surprises owners who assumed the fee at least came off first.
Does my country’s tax treaty reduce the 20% on rent?
No. Every Indonesian treaty gives Indonesia the right to tax income from property located here, without a ceiling. The caps people remember apply to dividends, interest and royalties. That is where the “reduced rate” belief comes from. For rent, a treaty lets the home country credit the Indonesian tax, and that is all it does. Treaty relief inside Indonesia matters for dividends from a company and needs a certificate of domicile (the DGT form or SKD) under Minister of Finance Regulation 112 of 2025, in force since 30 December 2025. A certificate with no stated period is valid only in the month it was issued; none runs longer than twelve months.
Is there a tax on building the villa?
On the contractor, and the contract passes it on. Construction services carry their own final income tax under Government Regulation 9 of 2022: 1.75% for a certified small contractor, 2.65% for other certified contractors, 4% for one without a certificate. VAT at the effective 11% comes on top of the contract value where the contractor is VAT-registered. The scheme passed its three-year review point in 2025 and stays until the ministry decides otherwise. A build priced “all in” has these inside it. A build priced on materials and labour does not, and the difference is well over a tenth of the contract, which is worth asking about before admiring the renders.
Is the 10% due again when a lease is extended?
Yes. The final tax on rent covers every amount paid under any name for the use of land or a building, and an extension payment is rent for the added years. It falls on the landowner just as the original did. The extension deed should say who bears it, as the first one should have, and often did not.
