The Real Cost of Buying a Villa in Bali: Taxes, Fees and Running Costs (2026)

Short answer: on top of the price, budget for VAT if you buy from a developer (effectively 11%, and often the biggest surprise), a notary fee of about 0.5–1%, legal due diligence, company costs if you buy through a PT PMA, and — once you own it — annual land tax, management (15–25% of rental revenue), running costs (about 5–8% of revenue) and rental income tax. Which items apply depends on the ownership structure. Here is the full list, and a worked example.

— The price itself — and what it includes. Ask directly whether the quoted price includes VAT, furniture, the pool, landscaping and utility connections. Off-plan prices in particular are often "shell and core" or exclude the furniture package. — VAT (PPN) when buying from a developer. New builds sold by a VAT-registered developer carry VAT. The headline rate is 12% from 2025, but for ordinary property the tax base is 11/12 of the price, so the effective rate stays 11%. On a $300,000 villa that is $33,000 — make sure you know whether it is inside or outside the quoted price. — Luxury sales tax (PPnBM) — 20%, but only on luxury homes priced from IDR 30 billion. Most villas are far below that threshold. — Acquisition duty (BPHTB) — up to 5% of the value above a local tax-free threshold. It applies when you acquire a registered land right, such as a Right to Build (HGB) through a PT PMA or a Right to Use (Hak Pakai). A leasehold is a contract rather than a land title; the landowner pays the final tax on the lease income, and it is normally built into the lease price. Confirm how your specific deal is taxed with the notary. — Notary (PPAT) fee — legally capped at 1% of the transaction; in practice 0.5–1%, and negotiable. — Independent legal due diligence — a lawyer or notary working for you, not the seller, to check the land certificate, zoning, permits and the contract. Ask for a fixed quote before you start. — Land registration fees at the land office (BPN) — small administrative amounts.

— Leasehold held personally: no company costs. The main hidden cost is time — the lease runs down every year (see Bali leasehold extension). — Hak Pakai: requires a residence permit (KITAS or KITAP) and its renewals. — PT PMA (foreign-owned company), the standard route for a rental business. Market prices in 2025: company set-up through a notary about IDR 16 million (≈$1,000), tax number about IDR 600,000, bank account about IDR 1 million. The paid-up capital requirement was reduced to IDR 2.5 billion in 2025 — this is capital the company holds and uses, not a fee. Annual compliance (tax reports, annual and investment reports, social insurance) runs to roughly IDR 7–8 million a year. An investor KITAS linked to the company costs about IDR 14 million for two years. Details in investor KITAS and a PMA company: process and real prices.

— Land and building tax (PBB) — up to 0.5% of the assessed tax base, which is derived from the official NJOP valuation rather than your purchase price. On leasehold the landowner usually pays it; check your lease. — Management — typically 15–25% of gross rental revenue if you rent the villa out. See Bali villa management: fees and how to choose. — Booking-platform commissions on each reservation. — Running costs — electricity, water, internet, pool, garden, cleaning supplies: about 5–8% of revenue. — Repairs and replacement — humidity, salt air and guest turnover wear things out quickly; keep an annual reserve. — Rental income tax — a 10% final tax on gross rent for Indonesian tax residents; non-residents are generally withheld at 20%, reducible under a tax treaty. — Local community (banjar) contributions and licence renewals for legal rental.

— Seller's final income tax — 2.5% of the gross price on a land and building transfer. Selling a leasehold (assigning the lease) is taxed differently — see tax on selling leasehold property in Bali for foreigners. — Agent commission, if you use one. — Notary fees for the transfer.

A $300,000 leasehold villa bought from a developer, 25 years remaining, rented out through a manager. Illustrative figures: — Price: $300,000. — VAT, if not included: up to $33,000. — Notary at 0.5–1%: $1,500–3,000. — Legal due diligence: a fixed fee — get a quote. — Furniture, if not included: ask the developer for the package price. Year one, assuming $45,000 gross rental revenue: — Management at 20%: −$9,000. — Running costs at 6%: −$2,700. — Platform commissions, repairs reserve: depends on the channel mix — model them explicitly. — Rental tax (10% of gross for a resident): −$4,500. — Lease amortisation — $300,000 over 25 years: $12,000 of the income is your own capital coming back. The point of the example is the structure, not the numbers: a villa quoted at "15% gross yield" can easily end up in single digits once every line is included. That is not a reason not to buy — it is a reason to put every line into your own spreadsheet before you do.

1. Is VAT included in the price? 2. What exactly is included: furniture, pool, landscaping, utility connections? 3. What ownership structure is offered, and whose name is on the documents? 4. On leasehold: how many years remain, and is an extension priced in the contract? 5. Who pays PBB and the tax on the lease? 6. What does the management contract cost, and what is excluded from the fee? Further reading: Bali property taxes: buying, owning, renting, selling · how much a villa on Bali costs by area. Browse listings: villas for sale in Bali. Sources: Indonesian Tax Authority (DJP); PMK 131/2024 on VAT; Laws UU HKPD No. 1/2022 and UU HPP No. 7/2021; PP No. 37/1998 on PPAT fees; Ministry of Investment Regulation No. 5/2025. Rates change — confirm current figures with an independent tax adviser before the deal.