Investing in Ungasan: Yields, Appreciation & Ownership
Who can buy, how ownership works, and the taxes and duties for buying property in Ungasan.
Who can buy in Ungasan
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 Ungasan.
Stamp duty and registration in Bali
Stamp duty and registration fees are applicable during property transactions in Bali, Indonesia. These charges are a percentage of the transaction value and are important considerations for buyers and sellers.
| Property value | Stamp duty | Registration |
|---|---|---|
| All | 0.5% of the transaction value (Bea Meterai) | 2% of the transaction value (BPHTB - Buyer's) |
Bali rule, applies in Ungasan.
Capital gains on a sale
In Indonesia, capital gains from real estate sales are subject to a final income tax. The tax rate and specific regulations can vary, and it's essential to understand these for accurate financial planning.
| Holding period | Classification | Tax rate | Indexation |
|---|---|---|---|
| Any | Sale of land and/or building | 2.5% of the gross sale value | Not applicable |
Indonesia rule, applies in Ungasan.
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 Ungasan
With conditions. Right to use: 30 + 20 + 30 years up to 80 total
Buying or selling in Ungasan?
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