Investing in Candidasa: Yields, Appreciation & Ownership
Who can buy, how ownership works, and the taxes and duties for buying property in Candidasa.
Who can buy in Candidasa
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 Candidasa.
Stamp duty and registration in Bali
Real estate transactions in Bali involve several taxes, including the Property Transfer Tax (BPHTB) paid by the buyer. Understanding these costs is crucial for investors.
| Property value | Stamp duty | Registration |
|---|---|---|
| All | 5% (BPHTB - Buyer) | Varies |
| All | 0.3% to 1% of NJOP (Land and Building Tax - PBB, annual) | Varies |
Bali rule, applies in Candidasa.
Capital gains on a sale
In Indonesia, capital gains from the sale of land and buildings are subject to a final tax. This tax is applied to the gross selling price, not just the profit margin, and can vary based.
| Holding period | Classification | Tax rate | Indexation |
|---|---|---|---|
| Any | Sale of Land and Buildings (Resident) | 2.5% of gross selling price (final tax) | No |
| Any | Sale of Indonesian Assets (Non-Resident) | 5% of gross proceeds (final tax), unless reduced by tax treaty | No |
Indonesia rule, applies in Candidasa.
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.
Frequently asked questions about Candidasa
With conditions. Right to use: 30 + 20 + 30 years up to 80 total
Buying or selling in Candidasa?
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