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.

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.