Property & Farmland in Bali
Who can buy, how ownership works, and the taxes and duties for buying property in Bali.
Who can buy in Bali
Indonesian land law reserves Hak Milik (freehold) for Indonesian citizens. Foreigners can hold Hak Pakai (right to use, up to 80 years residential), Hak Sewa (lease, 20-25 years), or Hak Guna Bangunan via a PT PMA company (80 years). Commonly applies in Bali and other provinces.
| Buyer | Permitted | Tenure | Conditions |
|---|---|---|---|
| Indonesian Citizen | Yes | Freehold (Hak Milik) | UnrestrictedApproval: BPN registration |
| Foreign National (residential) | Conditional | Hak Pakai | Right to use: 30 + 20 + 30 years up to 80 totalApproval: BPN registration |
| Foreign National (lease) | Yes | Leasehold (Hak Sewa) | 20-25 years renewable by agreementApproval: Notary agreement |
| PT PMA Company | Yes | HGB (Right to Build) | Up to 80 years via foreign-owned companyApproval: BKPM + BPN |
Indonesia rule, applies in Bali.
Stamp duty and registration in Bali
Property transactions in Bali involve a transfer tax (BPHTB) paid by the buyer, calculated on the transaction value. Additionally, a Name Change Tax (BBN) is levied to update property certificates.
| Property value | Stamp duty | Registration |
|---|---|---|
| All | 5% (BPHTB) | Varies (BBN) |
Capital gains on a sale
In Indonesia, capital gains from the sale of land and buildings are subject to a final income tax.
| Holding period | Classification | Tax rate | Indexation |
|---|---|---|---|
| Any | Sale of Land and Buildings (Indonesian Taxpayers) | 2.5% of transaction value | No |
| Any | Sale of Land and Buildings (Foreigners without tax treaty) | 5% of gross proceeds | No |
Indonesia rule, applies in Bali.
Always consult a licensed real estate attorney before purchase. Rules change; verify current law. Always confirm with a qualified tax professional. Rules change; verify with a professional before you transact.
PT PMA: Setting Up a Foreign-Owned Company to Hold Property
The 2.5 billion rupiah PT PMA capital figure is real, but it is not the whole number. The total investment plan for the company's specific business activity still has to clear 10 billion rupiah, and for a property-holding PT PMA specifically, the land and buildings usually count toward that larger figure rather than sitting outside it.
Frequently asked questions about Bali
With conditions. Right to use: 30 + 20 + 30 years up to 80 total
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