What taxes will I pay if I want to own a villa and receive rental income?

You will be required to pay a 10% tax on operating profit and a 10% tax on dividends (net profit). All expenses and costs are included in the financial model under the "rental flow" section, which also provides a forecast of net profit.

Taxes are not included in the property management company’s financial model. The rental income is transferred by the management company via SWIFT transfer—either to a personal account or through PayPal.

The only annual expenses you need to consider are accounting services for your company, which cost 10.5 million rupiah per year (equivalent to $ 700), and the land tax PBB (around $ 200). A tax specialist will close the company with zero indicators, so no additional taxes will arise. This is how 99% of villa owners in Bali operate.

If you wish to manage the company officially, specify the company’s bank account in the contract with the property management company for the rental income transfer.

In this case, the taxes will be as follows:

10% of the rental revenue
Land tax PBB — around $ 200
From 10% to 20% for dividend withdrawal, the rate varies. If there is a Double Taxation Agreement between Indonesia and the investor’s country, such as Spain, the tax will be 10% instead of 20%. Additionally, for Indonesian tax residents, the tax will be 10%.

In this case, it’s up to you to decide which strategy to use.