Example figures: an Indonesian buyer acquires a freehold villa for IDR 5,000,000,000. BPHTB is 5% of the acquisition value minus the NPOPTKP; assume the national minimum NPOPTKP of IDR 80,000,000 for a first acquisition. How much BPHTB is due (in IDR)?
IDR (5,000,000,000 - 80,000,000) x 5% = IDR 246,000,000. UU HKPD caps BPHTB at 5% and sets the NPOPTKP at no less than IDR 80 million for a first acquisition. Each regency (Badung, Gianyar, Tabanan) sets its own amount, so confirm the local figure with the PPAT.
DDTCNews, UU HKPD rules on NPOPTKP and BPHTB (2021-12-24) Example figures: the same buyer later acquires a second property in the same regency for IDR 3,000,000,000. The NPOPTKP cannot be used again on a second acquisition. How much BPHTB is due (in IDR)?
IDR 3,000,000,000 x 5% = IDR 150,000,000. The NPOPTKP deduction applies only to the first acquisition in the region, so later purchases pay the full 5%.
DDTCNews, UU HKPD rules on NPOPTKP and BPHTB (2021-12-24) Example figures: a seller transfers a freehold villa for IDR 6,200,000,000. The final income tax on transfers of land and buildings is 2.5% of the gross value. How much does the seller owe (in IDR)?
IDR 6,200,000,000 x 2.5% = IDR 155,000,000. Under PP 34/2016 the 2.5% is final and based on the gross transfer value, not on the profit. It must be paid before the PPAT signs the deed.
Setkab RI, PP 34/2016: 2.5% final income tax on land and building transfers (2016-08-08) On a freehold sale between two Indonesians in Bali, who legally pays which transfer tax?
- The buyer pays both
- The seller pays the 2.5% final income tax and the buyer pays the 5% BPHTB
- The notary pays both from his fee
- Both taxes are split 50/50 by law
The 2.5% final income tax is the seller's tax (PP 34/2016) and BPHTB is the buyer's acquisition duty. In practice the seller's tax is sometimes shifted to the buyer in negotiation, so put any such deal in writing.
Setkab RI, PP 34/2016: 2.5% final income tax on land and building transfers (2016-08-08) Example figures: a developer hands over a new landed house in December 2026 for IDR 4,500,000,000 (VAT excluded). VAT is effectively 11% (12% on a base of 11/12 of the price). Under PMK 90/2025 the government bears 100% of the VAT on the first IDR 2 billion for homes priced up to IDR 5 billion. How much VAT does the buyer still pay (in IDR)?
IDR Total VAT = 4,500,000,000 x 11% = 495,000,000. Government share = 2,000,000,000 x 11% = 220,000,000. Buyer pays 495,000,000 - 220,000,000 = IDR 275,000,000. The incentive covers handovers from January to December 2026; check eligibility of the buyer and unit with the developer's tax adviser.
Antara, Finance Minister issues PMK 90/2025 on 100% VAT borne by government for homes in 2026 (2026-01-05) A new villa is priced at IDR 5,600,000,000 with handover in November 2026. Does the 2026 VAT incentive (PPN DTP) apply?
- Yes, on the first IDR 2 billion
- Yes, on the full price
- No, because the price is above the IDR 5 billion cap, so full VAT applies
- Only if the buyer is a foreigner
PMK 90/2025 limits the incentive to homes priced up to IDR 5 billion, with 100% relief on the portion up to IDR 2 billion. Above the cap there is no relief, which can change the buyer's total cost by more than IDR 200 million.
Antara, Finance Minister issues PMK 90/2025 on 100% VAT borne by government for homes in 2026 (2026-01-05) Example figures: an Indonesian tax resident landowner leases land to a foreign buyer for 25 years for a total of IDR 2,000,000,000. The final income tax on land and building rental is 10% of the gross amount. How much tax is due (in IDR)?
IDR 2,000,000,000 x 10% = IDR 200,000,000. Under PP 34/2017 the tax is final and calculated on the gross rent. The tenant withholds it only when it is a designated withholder (for example a company); otherwise the landowner pays it. Agree in the contract who bears it.
DDTCNews, 10% final income tax on land and building rental (PP 34/2017) (2024-05-06) Example figures: an Indonesian resident owner rents out a villa on a yearly contract for USD 24,000. Convert at IDR 17,900 per USD, then apply the 10% final tax on rental income. How much tax is due (in IDR)?
IDR 24,000 x 17,900 = IDR 429,600,000. 10% = IDR 42,960,000. The 10% final rate applies to the gross rent, including service charges billed with it.
DDTCNews, 10% final income tax on land and building rental (PP 34/2017) (2024-05-06) Example figures: a non-resident foreigner sells the remaining years of his leasehold villa for USD 200,000. Lease assignments are taxed as rental income: 10% for tax residents, 20% for non-residents (reducible under a tax treaty). Before any treaty relief, how much tax is due (in USD)?
USD 200,000 x 20% = USD 40,000. The tax is on the gross price, even if he sells at a loss. A tax resident would pay USD 20,000. This is why leasehold sellers often net only about 74% to 85% of the price.
Rumavi, selling a leasehold villa in Bali (2026-09-11) Example figures: a PPAT notary charges 0.75% on a transaction of IDR 3,580,000,000 (the legal maximum is 1%). What is the fee (in IDR)?
IDR 3,580,000,000 x 0.75% = IDR 26,850,000. PPAT fees are capped at 1% of the transaction value and 0.5% to 0.75% is common. Budget separately for legal due diligence (about IDR 5 to 20 million) and BPN registration fees.
Global Investments, full buying costs breakdown in Bali (2026-06-13) Example figures: guests book a licensed villa for 5 nights at IDR 3,000,000 per night. The regional hotel tax (PBJT on accommodation, formerly PHR or PB1) is 10%. How much tax is collected (in IDR)?
IDR 5 x 3,000,000 = IDR 15,000,000. 10% = IDR 1,500,000. The tax is charged on the room price and paid to the regency, separate from income tax on the owner's profit.
Pajakku, PBJT rules and rates (UU HKPD) (2024-05-08) An owner assumes Airbnb handles all taxes on his Bali villa. What is the correct position?
- Airbnb collects and pays every Indonesian tax
- Short-term rentals are tax free in Bali
- Only guests pay tax, at the airport
- Airbnb does not always collect the 10% hotel tax in Indonesia, so the operator must register for an NPWPD and declare and pay it monthly
The 10% regional hotel tax must be declared and paid monthly by the operator using a regional tax number (NPWPD). Booking data is shared with tax authorities, so unpaid tax builds up as a liability that can follow the villa.
Villa Bali Sale, Bali villa rental compliance guide (2026-04-02) Example figures: a villa sells for IDR 7,160,000,000 with a 5% agency commission. What is the commission (in IDR)?
IDR 7,160,000,000 x 5% = IDR 358,000,000. Around 5% of the sale price is the usual figure for Bali villas, typically paid by the seller. Confirm whether VAT applies to the agency's invoice.
Global Investments, full buying costs breakdown in Bali (2026-06-13) Example figures: a leasehold villa sells for USD 400,000. The 5% commission is split 50/50 between the listing agency and the agency that brought the buyer. How much does each agency receive (in USD)?
USD 400,000 x 5% = USD 20,000, split in two = USD 10,000 each. Put co-broking splits in writing before the viewing, not after the deal.
Global Investments, full buying costs breakdown in Bali (2026-06-13) In a typical Bali villa sale, who pays the agent's 5% commission?
- Usually the seller; any buyer-side agent fee is separate and must be agreed in writing
- Always the buyer
- The landowner of the leasehold
- The notary, from the transfer taxes
Seller-paid 5% is the common practice. If you also charge the buyer (for search or due diligence), state it clearly in a signed agreement to avoid disputes.
Global Investments, full buying costs breakdown in Bali (2026-06-13) Example rate: IDR 17,900 per USD (the rupiah traded near IDR 17,901 on 6 October 2026). A client budgets USD 250,000. What is that in IDR?
IDR 250,000 x 17,900 = IDR 4,475,000,000. Prices in Bali are often quoted in USD but deeds and taxes are in IDR, so always state the rate and date you used.
Databoks (Katadata), rupiah at IDR 17,901 per US dollar (2026-10-06) Example rate: IDR 17,900 per USD. A villa is listed at IDR 3,222,000,000. What is the price in USD?
USD 3,222,000,000 / 17,900 = USD 180,000. Divide IDR by the rate to get USD; multiply USD by the rate to get IDR.
Databoks (Katadata), rupiah at IDR 17,901 per US dollar (2026-10-06) Example figures: an American buys a villa for IDR 4,475,000,000 when the rate is IDR 17,900 per USD. Years later he sells for the same IDR price, but the rupiah has strengthened to IDR 16,500 per USD. What is his currency gain (in USD, rounded)?
USD Purchase cost = 4,475,000,000 / 17,900 = USD 250,000. Sale = 4,475,000,000 / 16,500 = USD 271,212. Gain = USD 21,212 with zero price growth. The opposite happens if the rupiah weakens, so currency risk works both ways.
Databoks (Katadata), rupiah at IDR 17,901 per US dollar (2026-10-06) Example figures: a leasehold villa costs USD 300,000 for a 30 year term. What is the cost per year of lease (in USD)?
USD 300,000 / 30 = USD 10,000 per year. Comparing cost per remaining year is the fastest way to compare two leasehold villas with different terms.
Rumavi, selling a leasehold villa in Bali (2026-09-11) Example figures: a buyer leases 4 are of land (1 are = 100 m2) at IDR 6,000,000 per are per year for 25 years, paid upfront. What is the total lease price (in IDR)?
IDR 4 x 6,000,000 x 25 = IDR 600,000,000. Bali land leases are often priced per are per year. Remember the landowner's 10% final tax on this amount and agree who bears it.
DDTCNews, 10% final income tax on land and building rental (PP 34/2017) (2024-05-06) Example figures: a villa bought for USD 320,000 earns USD 48,000 gross per year. Management takes 20% of gross, platform fees 15% of gross, and maintenance and utilities USD 6,000. What is the net yield (in %, one decimal)?
% Management 9,600 + platform 7,200 + running costs 6,000 = 22,800. Net = 48,000 - 22,800 = USD 25,200. Net yield = 25,200 / 320,000 = 7.875%, so about 7.9%. Taxes and lease amortisation would reduce this further.
AirDNA, Bali short-term rental market overview (2026-10-13) Using the previous example (price USD 320,000, net income USD 25,200 per year), what is the simple payback period, and what should you compare it with?
- About 7.9 years, compared with nothing
- About 12.7 years, which must be compared with the remaining lease term (on a 25 year lease, only about 12 years of profit remain after payback)
- About 25 years, the length of the lease
- About 3.8 years, because rental income doubles over time
320,000 / 25,200 = 12.7 years. On a leasehold, payback must happen well before the lease ends, because the villa returns to the landowner. A payback longer than the remaining term means the client loses money.
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