The Financial Side of Investing in Bali, Made Clear
From purchase costs to annual ROI, we help you understand the numbers — and plan for success.
Financials
Finance & Loans
While most property transactions in Bali are still cash-based, there are a few viable financing options:
- Indonesian Bank Loans (PT PMA only):
Some local banks offer loans to foreign-owned companies (PT PMAs) — usually with conservative loan-to-value (LTV) ratios and higher interest rates. - Developer Installment Plans (Off-Plan Projects):
Many developers allow buyers to spread payments over the construction period, typically 6–24 months. - Home-Country Financing:
Investors may secure funding in their country of residence using a clear investment pitch and down payment. We assist with creating professional decks for this purpose.
Taxes & Fees
The main taxes and fees you should expect during and after purchase include:
| Category | Rate/Note |
|---|---|
| Notary (PPAT) Fee | ~1% of transacted value |
| Transfer Tax (BPHTB) | 5% – legally paid by buyer, but often included or negotiated in deals |
| Income Tax (PPh) | 2.5% (paid by seller) |
| Annual Property Tax (PBB) | 0.1%–0.3% of assessed land + building value |
| Rental Income Tax (NPWPD) | 10% of gross revenue (if earning income from rentals) |
| VAT (PPN) | 10% (only applies to certain new/developer properties) |
Important Note for Foreign Buyers:
The tax structure can vary based on whether you buy under your personal name (leasehold) or via a PT PMA (foreign-owned company).
We’ll walk you through the best setup based on your investment goals and income plans.
Full breakdowns are provided in the 2025 Investment Deck.
ROI Scenarios
Example: $500,000 USD Villa | 3 Bedrooms | $300/night Base Rate
| Scenario | Occupancy | Gross Income | Net Income | ROI (Annual) |
|---|---|---|---|---|
| Average | 65% (~238 nights) | $71,400 | $51,120 | 10.2% |
| High | 80% (~292 nights) | $87,600 | $64,080 | 12.8% |
| Peak-Adjusted | 235 nts @ $300 + 30 nts @ $900 | $97,500 | $72,000 | 14.4% |
Assumptions:
- Management fee: 20% of gross revenue
- Operational costs & taxes: ~ $6,000/year
- Peak pricing used during ~30 nights/year (Christmas, New Year, August)
Why Work With Us
- We combine legal, financial, and property expertise under one roof
- Transparent forecasting and conservative ROI assumptions
- Ongoing performance tracking through our management team
- Support for local and offshore financing strategies
- Tax-aligned structuring for short-term and long-term use
Disclaimer:
All financial figures, ROI models, and tax summaries provided on this page are for illustrative purposes only and do not constitute financial or legal advice. Actual investment performance may vary based on location, villa type, management strategy, and market conditions. We recommend consulting with a licensed advisor or tax consultant before making any property investment decisions.