Bali Property Taxes Explained: What Buyers, Owners, and Sellers Pay

Indonesian property taxes are straightforward once mapped clearly — and pricing them into your numbers from day one is basic honesty. Here is the full picture for a typical villa transaction. (Figures are current as of mid-2026; always confirm rates with your notary and tax advisor at transaction time.)

When you buy

• BPHTB (buyer's transfer tax): 5% of the taxable transaction value for freehold/HGB transfers.
• Notary/PPAT fees: typically around 1% of transaction value.
• Legal due diligence: fixed-fee, and worth every rupiah.
• Leasehold purchases: no BPHTB — lease tax is borne differently (see selling).

While you own

• PBB (annual land & building tax): a modest annual charge, usually a few million rupiah for a villa.
• Rental income tax: 10% final withholding on gross rental income for tax residents with an NPWP; 20% for non-residents. PT PMA companies are taxed under corporate rules instead.
• If operating short-term rental: local licences (PBG/SLF, tourism registration) and associated small fees.

When you sell

• PPh (seller's income tax): 2.5% of the gross transfer value on freehold/HGB sales.
• Leasehold assignments: 10% final tax on the lease value applies to the lessor (structure varies — get advice).
• Agent commission: customarily paid by the seller.

The practical takeaway

Budget roughly 6–7% on top of purchase price for a freehold acquisition (tax, notary, legal), and model rental income net of the 10–20% withholding. When a listing's numbers only work pre-tax, they don't work. We provide every client a full transaction-cost schedule before any offer is made.