What taxes do you pay when buying property in Bali?

Around 5% for the buyer on a titled transfer — and zero on a leasehold, which is a bigger deal than it sounds.

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.