Buying property in Bali can be a good investment, but it depends on several factors. The island’s growing tourism industry and increasing demand for both short-term and long-term rentals provide opportunities for rental income. In some areas, real estate prices in Bali have been increasing steadily, with potential for capital appreciation. Average rental yields for villas and apartments can range from 6% to 15% annually, depending on the type of property and location.
Foreigners cannot own land in freehold ownership (Hak Milik), which is available only to Indonesian citizens. Instead, options include leasehold (25–30 years with possible extensions) or setting up a PT PMA company to acquire building rights (HGB) or usage rights (HGU).
A resident visa (KITAS/KITAP or Second Home Visa) is required, along with company registration and notarial procedures. Tourists with a visa can lease or buy under leasehold, but full ownership requires a resident visa.
Property taxes in Bali include an annual land and building tax (PBB), which is 0.1%–0.3% of the assessed value (NJOP), determined by local authorities; a property transfer tax (BPHTB) of 5% of the transaction price for the buyer; and a capital gains tax (PPH) of 2.5% for the seller (or 10–20% for leasehold properties without an NPWP). Commercial property taxes are higher (0.3%–0.5%). Foreigners pay the same rates, but through a PT PMA company. Additionally, VAT (11%) may apply to new properties, as well as rental income tax (10–20%).
The best location depends on your goals. For long-term rental or permanent living, Ubud or Sanur are ideal. For short-term rental and beach holidays, Seminyak or Jimbaran are better options.
Leasehold (leasehold) is the right to use land for a fixed term (usually 25–30 years, with an option to extend up to 80–100 years). The land remains owned by the lessor (often an Indonesian), and the tenant can build, sublet, and enjoy the property.
For comfortable living, Seminyak, Canggu, Ubud, Sanur, and Uluwatu (rocky, with views) are suitable. These areas have everything you need, from schools to hospitals.
In Seminyak/Canggu, the average cost of property in Bali typically ranges from $350–950+ thousand. In Ubud and Uluwatu, prices are lower and range from $200–500 thousand for apartments or villas.
For investment, choose Canggu, Seminyak, and Pererenan, which offer high ROI (up to 10–15% from rental). Properties in Uluwatu and Tabanan show the most growth in the region, making them suitable for asset acquisition with expected further appreciation.
