Investing in Ubud: Yields, Appreciation & Ownership
Who can buy, how ownership works, and the taxes and duties for buying property in Ubud.
Who can buy in Ubud
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 Ubud.
Stamp duty and registration in Bali
Property transactions in Bali involve stamp duty (Bea Perolehan Hak atas Tanah dan Bangunan - BPHTB) paid by the buyer.
| Property value | Stamp duty | Registration |
|---|---|---|
| All | 5% (BPHTB) of transaction value | Varies (nominal) |
Bali rule, applies in Ubud.
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 calculated on the gross selling price, not just the profit margin, and applies to both.
| 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 Land and Buildings (Non-Resident) | 5% of gross proceeds (final tax) | No |
Indonesia rule, applies in Ubud.
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.
Where to Eat in Bali: A Considered List
Bali's food scene is not one list, it is at least four genuinely different ones happening across Canggu, Ubud, Seminyak and Jimbaran at once, and the better trip picks one honest standout from each rather than chasing a single top-ten ranking.
Frequently asked questions about Ubud
With conditions. Right to use: 30 + 20 + 30 years up to 80 total
Buying or selling in Ubud?
Tell us once. Our team connects you with the right homes, or the right buyers.