What taxes do you pay when buying property in Bali?

On a titled transfer: freehold, HGB or Hak Pakai

BPHTB: 5%, paid by the buyer. Calculated on the transaction value or the assessed value, whichever is higher, less the NPOPTKP threshold of at least IDR 80 million.

PPh final: 2.5%, paid by the seller. Income tax on the transfer of land and building rights.

VAT applies only where the seller is a developer or VAT-registered business. 12% on luxury property since January 2025, with the threshold applied in practice around IDR 5 billion.

Notary and PPAT fees run roughly 1–2.5% and are negotiable. Budget separately for your own independent legal review: USD 1,000 to 5,000 depending on complexity, and the best money in the transaction.

Both BPHTB and the seller's PPh must be paid before the PPAT will execute the deed. Bali custom puts BPHTB and notary costs on the buyer and PPh on the seller, but this is convention, not law, and it gets negotiated.

On a leasehold

None of the above. Hak Sewa attracts no BPHTB and no transfer PPh.

This is a genuine structural advantage that rarely gets weighed properly. On a IDR 5 billion acquisition, the leasehold route saves around IDR 250 million in acquisition tax alone. Against a depreciating term, that changes the comparison, particularly on a shorter hold.

The landowner still owes income tax on the rent they receive, and it is worth confirming they are declaring it, because an owner with an undeclared income history is an owner with a future problem.

Annually

PBB, land and building tax, roughly 0.1% to 0.5% of assessed value. Small. Check the receipts are current before you buy, because arrears follow the land.

What people get wrong

Budgeting the purchase price and nothing else. On a titled purchase, closing costs land around 7–8% all in once tax, notary and legal review are counted. Discovering that after committing to the price is how deals collapse at the deed stage.

The second mistake is assuming assessed value is the tax base. Where the transaction price is higher, which it usually is, the transaction price governs.

The taxes across a property's life

Budget roughly 7 percent of the purchase price for total transaction costs, covering the transfer duty, notary and PPAT fees, and independent legal review.

Transfer duty on purchase

The buyer's duty is calculated on the transaction value or the assessed value, whichever the authorities apply, so a price stated below the assessed value does not reduce the tax. There is a threshold below which the duty does not apply, and it is set regionally.

Annual land and building tax

Assessed on the official valuation of the land and any structure on it. By European or American standards it is modest, but it should be paid and the receipts kept. Outstanding tax on a property is a matter that surfaces at sale, and it surfaces at the worst moment.

Ask a seller for the last several years of receipts as part of diligence. Gaps are worth understanding before you take the property on.

Sale

The seller normally bears a final transfer tax on the sale value. Who actually pays what is negotiable in practice and frequently negotiated, so it should be explicit in the deed rather than assumed.

Leasehold is treated differently

Lease payments do not attract the same transfer duty as a titled transfer. The treatment differs and it affects the total cost of the transaction meaningfully. Confirm the position with your notary before the payment schedule is fixed, not after money has moved.

Under-declaring is not a strategy

Stating a price below the real one to reduce duty is common enough that it will be suggested to you. It creates a documented purchase price lower than what you paid, which reduces your cost base on eventual sale and increases the tax then. It also creates exposure you carry, not the person who suggested it.