Frequently Asked Questions

With professional management, the net yield of a suitable localized property moves in the range of 12–15% annually — after management fees, maintenance, insurance, and taxes, and these are scenarios under certain conditions, not a guarantee. Independent sources give more conservative figures: according to Global Property Guide (Q3 2026), the gross yield of a villa in Bali averages 4.24%, while the net is usually 1.5–2 percentage points lower — that is, in the range of 2–3%. The difference is explained by the type of property: a level around 12% is found with branded, professionally managed properties in strong locations, not with an ordinary villa. Yield is not a single number pulled out of thin air, but the result of a chain of assumptions — and if any of them does not hold for a specific property, the number falls too. The result depends mainly on the location, the achieved occupancy, the pricing, and the quality of the management company.

Average occupancy of tourist properties on the island ranges between 60–80%, but the exact number depends on whose occupancy is meant: brokerage reports for the upper hotel segment give around 75% on average for 2024 and 73.2% for 2025, while official statistics (BPS Bali) for all registered hotels report around 52–59% for 2024 and 52.3% through December 2025. For short-term rental villas, aggregators report average occupancy of around 64–66% for 2024, while in 2025 some analyses give around 53% and warn of a drop to the order of 30% in certain periods amid a growing number of unregulated villas. Peaks are in July – August and around the New Year holidays, and the weakest month is February: official statistics for star-rated hotels in 2025 show occupancy of 69.5% in August versus 46.6% in March — a difference of nearly 1.5 times. For vacation villas, the high season brings occupancy of 85–95% and prices 1.3–1.5 times above the base rate, while the low season brings occupancy of 45–65% and 0.7–0.85 of the base price. For a villa, hotel occupancy is not accepted as its own, and the calculation is done by months, not by annual average.

Pre-sale (off-plan) entry prices start at around $100,000–180,000, while apartments range from about $70,000–100,000 with proven developers; the median for island villas is ~$256,000–299,000, and most foreign buyers pay between $250,000 and $600,000 for a well-located property. Indicative average off-plan prices as of 2024 are: 1BR apartment ~$143,000, 1BR villa ~$212,000, 2BR villa ~$265,000 (the most actively traded segment), 3BR villa ~$465,000, and 4BR villa ~$537,000. We work mainly in the €200,000 – €500,000 segment — where we find the best balance between entry price, demand, and manageability. According to Global Property Guide (Q3 2026), the median price of a two-bedroom villa in Bali is $184,400, and for a one-bedroom it is $159,800, which is a leasehold price rather than a freehold land price. The real entry price in the foreigner-accessible market is more likely above $150,000 than below $100,000.

When buying off-plan (presale) properties in Bali, prices increase by 30–40% between the start of construction and completion, and the profit on resale is usually in the order of 20–30% in a favorable scenario. These values are indicative and depend on the reliability of the developer, compliance with deadlines and the market situation at the time of sale. However, the claim of 30–40% growth during construction is not confirmed by official data: Bank Indonesia's residential price index shows growth of 0.62% on an annual basis as of the first quarter of 2026, and for Denpasar — 0.87% annually. Therefore, presale makes sense only with a developer whose delivery and documents have been verified in advance.

Foreigners cannot own freehold land — Hak Milik (freehold) is reserved exclusively for Indonesian citizens under the Basic Agrarian Law (UUPA No. 5 of 1960, Article 21), and any transaction that directly or indirectly transfers it to a foreigner is void by law. Land rights are arranged in a hierarchy — Hak Milik, HGB, Hak Pakai, Hak Sewa — and a foreigner has access only to the latter three. The legal structures are: a long-term lease (Hak Sewa), which does not require a visa or a company; Hak Pakai, available to holders of KITAS, KITAP or a "Second Home" visa; a PT PMA — a foreign-owned company that holds land under HGB (30 + 20 + 30 years, up to 80 years), with a minimum paid-up capital of IDR 2.5 billion (around $150,000) following the change from October 2025; and strata title (SHM Sarusun) for apartments. For the private investor, leasehold is often the most practical choice because the payback is faster due to the lower entry cost, while the rights — sale, inheritance, lease — are retained.

Leasehold (Hak Sewa) is a notarized lease agreement with the landowner — the most affordable and most common route for a foreigner who does not require a residence permit. In the Bali market, the term is usually 25–30 years with an option to extend, written into the initial deed, and your rights are fully preserved — you can sell, inherit and sublease, and the plot is secured through a notary and registered in the state cadastre. Extension, however, is not automatic: if the price and conditions are not fixed already in the initial deed, upon expiry the property returns to the landowner without compensation — this is the most common costly mistake of foreign buyers. Under Hak Pakai and HGB, the term is 30 years, plus up to 20 years extension and up to 30 years renewal (total up to 80 years under Government Regulation No. 18 of 2021), but each subsequent action must be applied for and may be refused. That is why extensions are planned and submitted months, not weeks, before expiry.

The nominee scheme — an Indonesian citizen holds property formally in the name of a foreigner to circumvent the prohibition for Hak Milik — is not a form of ownership. It is void by force of the 1960 law, and Indonesian courts consistently recognise the Indonesian registered in the title as the owner, regardless of who paid — therefore nominee agreements also fail in court. Provincial Regulation (Perda) No. 4 of 2026, signed on 24 February 2026, adds criminal liability, covering both parties as well as the intermediaries and officials who facilitate the scheme. We therefore do not recommend them — instead, the lawful structures are used: leasehold, Hak Pakai or PT PMA/HGB.

When purchasing, VAT (PPN) of 11% is charged only for a new property directly from a developer or registered company and does not apply to resale between private individuals. The buyer pays acquisition tax BPHTB 5% for freehold transactions (on the value above the non-taxable threshold) and notary/PPAT fee up to 1%; the agency fee is 0% when purchasing from a developer and from 5% on the secondary market. Total transaction costs are usually around 6% on top of the price, to which is added the annual property tax (PBB) of 0.1% to 0.3% of the tax assessment. In a leasehold transaction the buyer (lessee) does not pay acquisition tax, and for a new property from a builder PPN is charged — effectively 11%, with 12% applied only to luxury properties above a certain threshold. That is why each item is asked separately, not for "the whole".

The seller pays a final tax on the sale (PPh Final): 2.5% of the declared value for freehold and 10–20% for leasehold depending on whether they have an Indonesian tax number (NPWP); the tax is final and after payment the transaction is not taxed again. Rental income is subject to a 10% final tax on the gross rent for local individuals and owners with an NPWP, while foreign non-residents are generally subject to a 20% withholding tax, which can often be reduced to around 10% under a double taxation avoidance agreement. In addition, overnight stays are subject to a 10% tax on the provision of accommodation (PBJT) under Law UU HKPD No. 1/2022 and a typical service fee of 5–11%. The tax treatment of the two flows — rental and sale — is different and requires planning with a licensed tax advisor.

Yes. Indonesian law explicitly protects the right of foreign investors to transfer funds abroad — income, proceeds from sales, and capital gains — after paying applicable taxes, and does not restrict the amount of funds that can be repatriated. SWIFT transfers are available to virtually any country through major Indonesian banks, and where a double taxation avoidance treaty applies, taxes paid in Indonesia may be credited against your liabilities in your country of residence. Proof of tax payment and a valid tax number (NPWP) are required where applicable. Separately, a 10% withholding tax applies to dividends from profit distribution for resident shareholders and 20% for foreign ones (which may be reduced under a DTT), while loan repayments are not treated as dividends.

Before engaging funds, we verify the status and zoning of the land, the building permit (PBG or a valid IMB), the rental licenses (NIB), the absence of disputes and encumbrances on the land, paid prior taxes (PBB), and the developer's reputation and track record. The authenticity of the certificate is verified directly with the National Land Agency (BPN), not by a copy, along with the type of title (SHM, HGB or Hak Pakai), the chain of ownership, registered mortgages and accrued and unpaid annual taxes. Zoning is verified with an official certificate for the specific parcel (ITR/KKPR), not by color on a public map, and it is checked whether the land is not protected agricultural land (LP2B/LSD). The notary (PPAT) is responsible for the transfer, but their role is primarily procedural, therefore we recommend an independent legal review, separate from the notarial process.

The choice of developer is often more important than the choice of villa — a good location doesn't help if the project isn't completed or doesn't have proper ownership. We check realized and completed projects and met deadlines (can they be visited on-site or on video), proper ownership (valid building permits PBG/IMB and business license NIB), financial structure — whether payments are tied to verifiable stages of construction, and not large sums upfront with unclear deadlines — and the clarity of the title on the land without current disputes. We also look at feedback from previous buyers, and our local team can physically see the construction site and the completed properties. Not a single project is presented to the client before it has passed a legal review, and we work only with developers with whom we have direct contracts.

Remote purchase is standard practice when prepared — the difference is not in how good it looks in a video, but in what questions you asked and what documents you requested. Before an online conversation, prepare a paper copy of the land certificate with the type of right indicated, a sketch of the parcel, PBG and SLF, the zoning document, a draft of the deed and the notarial act (PPAT), and data on the annual tax (PBB) with no arrears; also request a live video of the entire parcel with its boundaries, access road, water supply, and neighbors. Title verification should be done by an independent notary or lawyer who does not work for the seller. For new construction (presale), the usual payment structure is a reservation deposit, an initial down payment of 20–25%, and installments tied to verifiable stages of construction, with the remainder on handover. Payments go through a notarial account (escrow), not a personal account — if the seller insists on large sums in advance and to a personal account, that is a signal to stop. According to market guides, construction usually takes between 9 and 18 months.

Property management encompasses everything that keeps a property in good condition and ready for tenants: technical maintenance and emergencies, staff, pool and garden, security, utilities, scheduled inspections, repairs and monthly reporting — with remote ownership, this is capital protection, not a comfort expense, because the tropical climate wears down property faster and a small problem without oversight turns into an expensive repair. Rental management determines how often the property is rented, at what price and through which channels the overnight stays are sold — it directly generates the cash flow. The usual model is a commission on gross revenue — most often 15–25%, with the full service package running around 15–20%. The fee is only one line item: the full list of expenses — staff, utilities, maintenance, commission to booking platforms, taxes and insurance — usually eats up 30–50% of gross revenue. That is why the percentage alone means nothing until it is clear what exactly goes into it. Letting also requires an NIB licence — without it there is a real risk of the property being delisted by Airbnb and Booking.

Liquidity depends on the type of ownership. Leasehold properties are less liquid on the secondary market — buyers factor in the remaining term, and with a remaining term under 15–20 years, selling at a good price is significantly harder, whereas with 25+ years remaining it is much easier. Freehold and Hak Pakai are resold more easily because they do not depend on an expiring term, although foreign buyers face structural restrictions when directly acquiring freehold land. The speed of sale also depends on location (established areas such as Canggu and Seminyak sell faster than new zones), the quality of documentation — clean documents speed up the next buyer's due diligence — and whether the property has a traceable rental income. That is why the exit strategy is defined before the purchase, and with a PT PMA structure, the company shares are sold rather than the title — so BPHTB is not owed a second time.