What are the taxes in Bali when investing in real estate?

When purchasing property in Bali, investors may sometimes be required to pay VAT (11%), which is similar to the Value Added Tax.

During property ownership, a land tax (PBB) must be paid annually. This tax depends on the assessed value of the land. The land tax rate ranges from 0.1% to 0.5% of the assessed land value per year. These costs are often accounted for in the financial models of projects.

When reselling property, taxes can vary depending on several factors, such as the readiness of the property, land lease agreements, the type of property, and the payment arrangements between the seller and the buyer. These aspects are discussed in more detail during a client consultation.