Property taxes in Bali: PPh, PBB, BPHTB and the Meterai stamp
AB
Andrei Balinsky
Founder of Balinsky
Indonesia's tax system for a property owner works differently from Russia or Europe. Let's go through the four main taxes and duties you will face.
- PPh (Pajak Penghasilan) — income tax
If you sell property in Bali, the seller pays PPh of 2.5% of the deal value. It is withheld through the notary when the deal is registered.
If you rent out property, a final tax of 10% is paid on rent for land and buildings (Government Regulation No. 34/2017). For a non-resident, in practice the tax office also takes 10%, although some consultants believe it should be 20%. Short-term rental is a hotel business with its own taxes, see property taxes.
- BPHTB (Bea Perolehan Hak atas Tanah dan Bangunan) — tax on acquiring rights to land and buildings
The buyer pays it when the deal is registered. The rate is up to 5% of the property's value minus the tax-free threshold (NPOPTKP). Since 2022, it has been at least 80 million rupiah; the exact amount is set by the regency. The tax is withheld through the notary.
- PBB (Pajak Bumi dan Bangunan) — annual land and building tax
Paid every year by the owner. The rate is up to 0.5% (since 2022 the rate is set by the regency) of the NJOP (the state assessed value). The NJOP is usually 3–5 times lower than the market price, so actual payments are small. For a villa worth $200,000, PBB usually comes to $100–300 a year.
- Meterai — stamp duty
This is a small stamp on documents, governed by Regulation 134/PMK.03/2021 and Law No. 10 of 2020. It costs 10,000 rupiah per stamp (about $0.6). It is needed for all contracts worth more than 5 million rupiah, including lease agreements, sale and purchase agreements and powers of attorney. The electronic Meterai has been legal since 2021.
A beginner investor's mistake: thinking that PBB is all there is. In reality, the annual burden also includes the licence fee (if the property is rented out), the management company's fee, insurance and periodic legal services for renewing licences.
What to do at the start:
— Get an NPWP (tax number). Without it, many taxes are withheld at a higher rate.
— Open a separate bank account for rental income so you do not mix income with expenses.
— Find a local outsourced accountant. In Bali this costs 1.5–3 million rupiah a month and takes away 90% of the tax routine.
If you work through a PMA, the tax structure is different — on top of personal PPh there is the company's 22% corporate tax and mandatory annual reports.
Editorial note
Balinsky editorial team · 12 October 2026.
Update: we updated the tax-free threshold for the buyer's tax (BPHTB): at least 80 million rupiah instead of 60 million. We corrected the rental tax: it is a final 10%, not a progressive scale. We updated the annual land tax rate (up to 0.5%).
Source: DDTC on the tax-free threshold — https://news.ddtc.co.id/uu-hkpd-revisi-aturan-npoptkp-tanah-dan-atau-bangunan-ini-rinciannya-35545; Local Taxes Law No. 1/2022 — https://pasal.id/peraturan/uu/uu-no-1-tahun-2022