Bali Property Investment — 2026 Guide

Rental yields calculated from our own data, legal structures (leasehold and PT PMA), taxes for foreign owners, zoning and permits. Every figure on this page links to its source.

Updated: September 2026

≈10%
gross yield, median 2-bed villa at 65% occupancy
806
villas and apartments in the catalogue
27%
of villas have a PBG or SLF on record
6,305
villa rentals analysed

Why Foreign Investors Look at Bali

Bali is one of the few resort markets in Southeast Asia where a foreigner can legally control property despite Indonesia’s ban on foreign freehold — through a lease, a Right to Use (Hak Pakai) with a residence permit, or a foreign-owned company (PT PMA) holding a Right to Build.

Demand is strong: Bali received 6,948,754 foreign visitors in 2025, a record (BPS Bali). Star-hotel occupancy runs at roughly 57–65% and dips in the low months (BPS Bali). Balinsky tracks the short-term rental market daily — over 6,300 villas with their listed nightly rates, via estatemarket.io — and compares every villa for sale with its neighbours. BPS · estatemarket.io

The trade-offs are just as real: most villas are leasehold and lose value as the term runs down, developers are uneven, a third of villas for sale sit on residential land where nightly rental is not permitted, and only about a quarter have a building permit on record. Zoning and permits in numbers

Yields by Area — Our 2026 Calculation

Two-bedroom villas: median asking price in the Balinsky catalogue and median listed nightly rate of two-bedroom villas for rent in the same area, at 65% occupancy. Net = after 15% booking-platform commissions, 20% management, 6% running costs and 10% local accommodation tax (PBJT); before income tax; before leasehold amortisation. Full method: Bali villa rental yield by area.

  • Greater Canggu (Canggu, Berawa, Batu Bolong, Pererenan, Umalas, Seminyak)
    2-bed price, median
    $309,500 (44)
    Per night, median
    $132 (1,042)
    Gross / net
    10.1% / 5.0%
    browse
  • Bukit (Uluwatu, Melasti, Pandawa, Ungasan)
    2-bed price, median
    $359,900 (43)
    Per night, median
    $164 (400)
    Gross / net
    10.8% / 5.3%
    browse
  • Ubud*
    2-bed price, median
    $277,500 (14)
    Per night, median
    $121 (323)
    Gross / net
    10.3% / 5.1%
    browse
  • Nyanyi and Tabanan*
    2-bed price, median
    $253,000 (17)
    Per night, median
    $116 (17)
    Gross / net
    10.9% / 5.3%
    browse
  • Nusa Dua*
    2-bed price, median
    $327,500 (9)
    Per night, median
    $108 (34)
    Gross / net
    7.8% / 3.8%
    browse
  • All of Bali
    2-bed price, median
    $322,500 (150)
    Per night, median
    $135 (1,966)
    Gross / net
    9.9% / 4.9%
    browse

* fewer than 30 sale prices — indicative

Legal Structures — Leasehold vs PT PMA

Leasehold

A contractual lease from a local owner — usually 25–30 years; an extension exists only if it is written into the contract.

  • No company needed
  • Signed as a notarial deed
  • No annual corporate reporting
  • Fits a home or one or two rental villas
  • You do not own the land — only the right to use it, for a fixed term

PT PMA

An Indonesian company with foreign shareholders. It holds a Right to Build (HGB) — not freehold, which foreigners and foreign-owned companies cannot hold.

  • Right to Build (HGB): 30 + 20 + 30 years (PP 18/2021)
  • Suits a rental business or a portfolio
  • Paid-up capital of IDR 2.5 billion (Ministry of Investment Regulation 5/2025)
  • Annual tax and investment reporting
  • 22% corporate income tax

The full transaction process is on the «How to buy property in Bali».

Return Calculation — a Median Villa

2-bed villa at the catalogue median, $322,500, 30-year leasehold
  • Nightly rate: $135 (median of 1,966 two-bedroom villas for rent) × 65% occupancy × 365 = about $32,000 a year gross
  • Platform commissions 15%, management 20%, running costs 6%, local accommodation tax (PBJT) 10%: about −$16,300 (before income tax)
  • Net: about $15,700 a year — 4.9% of the price
  • Leasehold amortisation: $322,500 ÷ 30 years = $10,750 a year, so about $4,950 a year is return above getting your own money back

A villa in the top quarter of the market ($190 a night) at 75% occupancy: about $52,000 gross and $25,500 net — 7.9% of the same price.

Each villa page in the catalogue shows an estimate based on its own neighbours. Method: Bali villa rental yield by area.

Risks Sellers Rarely Mention

  • The lease runs down. A 25-year lease uses up about 4% of the price every year. Compare villas by price per remaining year.
  • No building permit or SLF. Without them, licensing a rental is difficult. Only about 27% of villas in our catalogue have a PBG or SLF on record.
  • Residential or agricultural land. A third of villas in our catalogue sit on residential (yellow) land where nightly rental is not permitted. Check the RDTR zone of the exact plot.
  • Projections above the market. At the median, a two-bedroom villa earns about 5% net. Projections of 10–15% assume top-of-market rates and occupancy.
  • Developer risk on off-plan. Pay by construction milestone, keep the largest payment for handover, and do not pay before the PBG exists.

What We Show for Each Listing

For every property we record the permit status (PBG, SLF), the land zone and the developer, and show them on the listing. Where a document has not been provided, the listing says so — in September 2026 that was 57% of villas. Always verify documents yourself or through your own lawyer before paying.

Documents

PBG, SLF and land status as recorded — ask for copies before paying.

Developer

Company, completed projects and other listings by the same developer.

Location

Map, land zone colour, nearby places and rental competition around the property.

More on the «About Balinsky».

Next Steps

Villa catalogue

Villas with photos, prices, permit status and an income estimate.

Apartment catalogue

Units in managed complexes — the lowest entry price.

Residential complexes

Off-plan and completed complexes with completion dates.

How to buy — step by step

Ownership structures, the transaction, real costs and pitfalls.

Frequently Asked Questions

What is the realistic rental yield for a Bali villa in 2026?

By Balinsky’s calculation (September 2026: 359 villas for sale, 6,305 villas listed for rent), a median two-bedroom villa earns about 10% a year gross and about 5% net at 65% occupancy; a one-bedroom villa about 14% gross and 7% net. Villas in the top quarter by nightly rate reach about 7–10% net. Net means after platform commissions, management, running costs and local accommodation tax, before income tax and leasehold amortisation. Star-hotel occupancy on Bali is roughly 57–65% (BPS Bali).

Leasehold or PT PMA — which structure should a foreign investor pick?

A leasehold (a contractual lease, usually 25–30 years) suits a home or one or two rental villas: no company and no annual reporting. A PT PMA holds a Right to Build (HGB, 30 + 20 + 30 years under PP 18/2021) — not freehold, which foreigners cannot hold. It suits a rental business; the paid-up capital requirement is IDR 2.5 billion (Ministry of Investment Regulation 5/2025), plus annual reporting and 22% corporate income tax.

What taxes does a foreigner pay when buying and owning property in Bali?

On purchase: VAT when buying from a developer (effectively 11%), acquisition duty (BPHTB) up to 5% when a registered land right is acquired, and a notary (PPAT) fee of 0.5–1%. On ownership: land and building tax (PBB) up to 0.5% of the assessed base. On rental income: a 10% final tax on gross rent for tax residents; non-residents are generally withheld at 20%, reducible under a tax treaty. On sale: a 2.5% final tax on the price of a land-and-building transfer. Sources: DJP, PwC Indonesia Tax Summaries.

How many years until a Bali villa pays back?

It depends on the net yield: at 5% net about 20 years, at 7% about 14 years, at 10% about 10 years. On a 25–30-year leasehold that leaves little margin at the median, which is why the price, the nightly rate a villa can really achieve and the lease term matter more than the brochure yield.

What are PBG and SLF, and why do they matter?

PBG (Persetujuan Bangunan Gedung) is the building permit, issued before construction. SLF (Sertifikat Laik Fungsi) is the certificate of functional feasibility, issued on completion. Without them, licensing a rental is difficult. In the Balinsky catalogue, 27% of villas have a PBG or SLF on record and 16% have an application in progress (September 2026) — ask for the documents before paying.

Can I get an Indonesian residence permit through property investment?

Buying a villa alone does not grant residency. Options include an investor KITAS linked to a PT PMA, the Second Home Visa (funds of IDR 2 billion placed in an Indonesian bank) and the Golden Visa for larger investments. Conditions change — check them with the Directorate General of Immigration.

Sources

  1. BPS Bali — foreign tourist arrivals 1969–2025
  2. BPS Bali — tourism statistics, hotel occupancy (November 2025 release)
  3. estatemarket.io — short-term rental listings (source of the rental database)
  4. Balinsky — Bali villa rental yield by area: method and data
  5. Balinsky — zoning and permits of villas for sale, in numbers
  6. PP No. 18/2021 on land rights (JDIH BPK)
  7. PwC Indonesia — Tax Summaries
  8. DJP — Indonesian Tax Authority
  9. Directorate General of Immigration