Bali property glossary

Freehold

SHM, Sertifikat Hak Milik

The strongest land right in Indonesia, held with no end date and passed to heirs. The Basic Agrarian Law (5/1960) reserves it for Indonesian citizens, so a foreigner can't hold it, directly or through someone else. Sellers often call it SHM, after the certificate. A foreign buyer leases this land or takes Hak Pakai over it.

Right-to-use title (Hak Pakai)

The only registered land right a foreign resident can hold in their own name. On state land it runs up to 80 years in three stages, 30 + 20 + 30 (PP 18/2021). You need a stay permit first, and in Bali a house must cost at least Rp 5 bn (Ministerial Decree 1241/2022).

Right to build (HGB)

Hak Guna Bangunan

A registered right to own buildings on land that belongs to someone else. On state land it lasts up to 80 years as 30 + 20 + 30 under PP 18/2021, and 30 years on an Indonesian's freehold. Indonesians and Indonesian companies hold it, including a PT PMA owned by foreigners. Unlike a lease, it can secure a bank loan.

Leasehold (Hak Sewa)

A contract to occupy another person's land, usually with a villa standing on it, for a set term. A notary certifies it, yet the land register never records it. First terms tend to run 25–30 years. At expiry, plot and building return to the landowner unless your contract grants more time.

Lease extension

Your right to keep a leasehold after the first term. Indonesian law grants no automatic extension, so it lives only in the contract: how many extra years, at what price and by which notice date. Roughly 60% of the leasehold listings we carry state one (September 2026). "The parties may discuss" is not a right.

Lease assignment

Transfer of lease

Selling the years left on your leasehold to a new tenant. The buyer steps into the original contract, so its rent, permitted use and extension clause carry over unchanged. Read whether the landowner has to consent and get that consent on paper. The tax office often treats the proceeds as lease income, taxed at 10% or 20%.

Strata title

Hak Milik atas Satuan Rumah Susun

Ownership of a single apartment unit plus a share of the common areas and the land beneath. A foreigner may register one under PP 18/2021, provided the building sits on HGB or Hak Pakai land, and the unit goes in their own name. For a foreign buyer in Bali, the unit has to cost at least Rp 2 bn.

Foreign-owned company (PT PMA)

An Indonesian company with foreign shareholders, registered through OSS. It can hold HGB and run a licensed rental business, never freehold. Shareholders now pay in at least Rp 2.5 bn, a floor BKPM Regulation 5/2025 set in October 2025. Planned investment still has to top Rp 10 bn per business code. Land and buildings don't count toward it.

Nominee arrangement

A setup where an Indonesian citizen holds freehold or company shares on paper while a foreigner pays for and controls them. The Basic Agrarian Law, in Article 26(2), cancels any such transfer, and the buyer can't recover the money. Shareholdings held for someone else fall under Law 25/2007. Bali added its own ban in Provincial Regulation 4/2026.

Girik and Letter C

Old village tax records that once served as informal evidence of who held a plot. Under PP 18/2021, Article 96, they stopped counting as proof of title on February 2, 2026. Land held only on girik has to be registered before anyone can sell it as a certified right, so treat such an offer as unfinished.

Customary village land

Tanah adat

Land tied to a Balinese customary village, the desa adat. Think shared village fields, temple grounds and family house plots inside the village. Whoever takes the plot inherits its obligations to the community, and some villages refuse any sale to outsiders. A certificate can look spotless while the village still has a say.

Land certificate

Sertifikat

The document the land agency issues for a registered right. It shows the type of right, the holder, the plot area and map, and the expiry date. It proves who holds the land, not what you may build on it. Once a title has been registered for five years in good faith, third-party challenges mostly close (PP 24/1997).

Mortgage charge (Hak Tanggungan)

The security a bank registers against a land title when it lends. Law 4/1996 lets it attach to freehold, HGB, HGU and a transferable Hak Pakai. A lease isn't on that list, so a leasehold villa can't carry an Indonesian mortgage. Most foreign buyers pay cash or use the developer's payment schedule instead.

Booking fee

Tanda jadi

A small first payment, usually 1–5% of the price, that takes a unit off the market while you check documents. Whether it comes back when a check fails depends entirely on what you sign. Get a refund clause tied to due diligence before you wire anything. Sellers sometimes call three different payments "the deposit".

Presale agreement (PPJB)

The binding sale contract signed before the final deed, common on off-plan projects and on deals still waiting for taxes or paperwork. For housing projects, PP 12/2021 requires a land title, a building approval and at least 20% construction before the developer may sign one. It fixes the price, schedule, handover date and penalties.

Deed of sale (AJB)

Akta Jual Beli

The deed that transfers a registered right to land and building, signed before a PPAT. Both taxes are paid first: the seller's 2.5% and the buyer's BPHTB. The PPAT then has seven working days to lodge the deed at the land office, which updates the certificate. A leasehold deal never uses an AJB.

Notary (Notaris)

A state-appointed official who drafts and certifies private deeds under Law 30/2004: leases, powers of attorney, company deeds and contracts. On many Bali deals the notary also holds the deposit. Fees are capped by deed value, from 2.5% down to 1%. Any appointment can be confirmed in the AHU Online register run by the Ministry of Law.

Land deed official (PPAT)

Pejabat Pembuat Akta Tanah

The official who signs deeds that alter the land register: a sale, a new Hak Pakai or HGB, a mortgage. Many Bali notaries hold both appointments. The fee ceiling set in PP 24/2016 is 1% of the price written in the deed, with lower caps as deals grow. A plain lease doesn't need one.

Land agency (ATR/BPN)

Kantor Pertanahan

Indonesia's Ministry of Agrarian Affairs and Spatial Planning together with its National Land Agency. It keeps the land register, issues certificates and publishes the zoning maps. Every regency has a land office. The official certificate check there is a Rp 50,000 fee set by PP 128/2015, and you'll need the original certificate.

Sentuh Tanahku

The land agency's free public app. Enter a certificate number and it returns the kind of right, the registered area, when the right ends, a plot map and any application in progress. It takes minutes and tests the seller's story before you order the paid official check. A mismatch in area or expiry needs an answer immediately.

Due diligence

The checks a buyer runs before paying more than a booking fee. In Bali that covers the land certificate and any mortgage or block on it, the plot's zone, the PBG and SLF, the seller's company records and duties to the customary village. Each has its own source. A clean title says nothing about the rest.

Off-plan

Buying a villa or apartment before it's built, paying in stages as construction advances. About two in three listings in our catalog are still being built (September 2026). You pay less than for a finished home. In return, you carry the build risk. The permits, the contract and the developer's finished projects matter most.

Construction-linked payment schedule

A payment plan tied to stages you can see on site: foundation, structure, roof, handover. The common Bali split is 30/30/40, usually interest-free. Interest-free isn't free: Anteyac's 2026 review found these plans priced 5–15% above a cash deal. Keep the final payment until the certificate of occupancy is issued.

Handover

The day the developer gives you the keys and you sign the acceptance record. Walk the villa with a defect list first: roof, drains, electrics, air conditioning, joinery, and the furniture package against the specification. Anything you accept in writing is hard to claim afterward, so collect the SLF and the full document set on the same visit.

Turnkey

Sold ready to use: built, finished, furnished and equipped for guests. What the furniture package covers still varies by project, from linen and kitchenware to pool equipment and a booking setup. Ask for the inventory in writing. "Fully furnished" on one price list and on another rarely mean the same thing.

Completed villa

Ready to move in

A house already built and handed over, usually sold by its owner rather than a developer. You see exactly what you buy, can read its SLF and booking history, and can move in or start renting straight away. Roughly a third of the homes we list are finished ones (September 2026).

Spatial plan (RTRW)

Rencana Tata Ruang Wilayah

The general land-use plan for a province or regency, too coarse to settle a single plot. Bali's provincial plan covers 2023–2043 under Perda 2/2023 and sets island-wide limits such as the 15-meter building height. To know what a particular plot allows, you need the detailed plan, the RDTR.

Detailed spatial plan (RDTR)

Rencana Detail Tata Ruang

The zoning map for a district, drawn block by block. It decides what you may build on a plot and how densely, which the land certificate doesn't tell you. Tarubali counted 31.49% of the island under detailed plans on February 12, 2026. Badung, Gianyar and Denpasar are covered in full. Search a plot on GISTARU.

Pink zone

Tourism zone

Local shorthand for land zoned for tourism and accommodation, named after its color on the maps. A rental villa needs a zone like this to get its permits and a rental license. Provincial rules cap buildings there at 50% plot coverage and 15 meters. It's the first link in a chain that continues with PBG, SLF and the rental license.

Green zone (LP2B)

Protected farmland

Farmland protected for food production, including working rice fields, under Law 41/2009. Villas next door don't make it buildable. Illegal conversion carries a prison term of up to five years, and Bali's Perda 4/2026 now limits building villas on productive fields. Land here looks cheap for exactly that reason.

Zoning confirmation (KKPR)

PKKPR

Confirmation that the use you plan for a plot matches the spatial plan, required before any building approval. It replaced the old location permit. Where an RDTR sits inside OSS, the system issues it automatically, often in seconds. Elsewhere a manual assessment, PKKPR, can run 20 working days once the file is complete and the fee paid.

Building ratios (KDB, KLB, KDH)

The RDTR sizes a building with a few numbers. KDB caps how much of the plot the ground floor covers, and KLB caps total floor area as a multiple of the plot. KDH sets the green, unpaved share. Run all three before an architect draws a line, because together they decide how many bedrooms fit.

Building approval (PBG)

Persetujuan Bangunan Gedung

Indonesia's building approval, required before construction starts. PP 16/2021 introduced it in place of the IMB, and it checks the design against the zoning and technical standards. A villa built without one can't obtain a certificate of occupancy or a legal rental license. Ask for the PBG number before you sign an off-plan contract.

IMB

Old building permit

The building permit Indonesia issued until 2021, when PP 16/2021 replaced it with the PBG. New projects can't apply for an IMB anymore, while one issued before the change still covers the building it was granted for. A villa finished in 2024 with only an IMB in the file deserves a question.

Certificate of occupancy (SLF)

Sertifikat Laik Fungsi

Confirmation, after an inspection, that a finished building matches its approval and is safe to use. PP 16/2021 gives a single house 20 years before renewal, and any other building, commercial ones included, 5 years. The rental license depends on it, so hold back the last off-plan payment until it arrives.

GISTARU

The land agency's interactive RDTR map. Drop a GPS point taken on the plot and it shows the zone and the block's building ratios. Access is free and public. Since a land certificate never states the zone, this lookup belongs before the deposit, not after the notary has drafted anything.

OSS

Online Single Submission

Indonesia's government licensing portal for businesses. It registers companies, issues the business identification number with its activity codes, and handles zoning confirmation. A PT PMA gets set up through it. A rental villa with its papers in order typically receives its license within a few working days.

Rental license (NIB)

Nomor Induk Berusaha

The business identification number issued through OSS, which works as the license to rent. Nightly letting needs the correct activity code, plus a building holding PBG and SLF inside a zone where accommodation is allowed. The Tourism Ministry started delisting unlicensed villas and guesthouses from booking sites on August 1, 2026.

KBLI activity code

The five-digit code in Indonesia's business classification that tells OSS what a company does. A villa let by the night falls under KBLI 55193. The code on the license must match how the property actually earns. From June 2027, booking platforms plan to run that match against OSS themselves, listing by listing.

Hotel tax (PBJT)

Formerly PHR

The regional tax on accommodation services. Law 1/2022 folded the former hotel tax into it. It applies to villas, guesthouses and private homes let by the night, not only hotels. In Badung the rate is 10% of the guest's bill. The operator collects it from guests and pays it to the regency every month.

Plus-plus (++)

The pricing habit of adding tax and service on top of the quoted rate. In Bali that normally means a 10% PBJT and a 10% service charge, about 21% on top once one applies to the other. Guests compare villas on the final figure, so price yours against competitors on the same basis.

Tourist levy

A charge of Rp 150,000 per entry that Bali collects from foreign tourists, in force since February 14, 2024. Holders of a KITAS, KITAP or student visa are exempt. It sits outside the room rate and outside platform commission, so a villa's revenue doesn't move with it.

Property management agreement

The contract under which an operator markets, runs and maintains your villa for a share of revenue. Five clauses deserve a second reading: the fee and its base, owner's nights, who replaces the furniture package, whose license the villa rents under, and the exit terms. This document sets your net yield more than any brochure.

Management fee

The operator's cut of rental revenue, stated as a percentage. Mid-market Bali managers take 15–20%, budget operators 20–25%, premium ones 12–15%, and resort operators about 23%. Check whether the fee is charged on gross bookings or on revenue after platform commission. On the same villa, that choice moves the owner's income.

Rental guarantee

A promise to pay the owner a fixed share of the purchase price every year, typically for the first few years after handover. It's worth what the paying company can support. Ask who pays, from which revenue, and what happens to your income once the guaranteed years run out.

Owner's nights

The nights a year you may stay in your own managed villa free of charge. The agreement sets the number and often blocks July, August and the New Year, the weeks that earn the most. Every high-season night you take for yourself comes straight out of the year's rental revenue.

Furniture package (FF&E)

Furniture, fixtures and equipment

Everything in a villa that isn't part of the structure: furniture, fittings, appliances, pool and kitchen equipment. At handover, check it piece by piece against the specification. On a rental, guests and humidity wear it out quickly, so the management agreement should name who pays for replacements.

Sinking fund

Replacement reserve

Money set aside from rental revenue each month for big replacements. It covers roof repairs, the pool pump, air conditioning and furniture. Relative humidity in Denpasar sits at 77–82% all year, which shortens the life of all of them. Without a reserve in the agreement, those costs reach you as one large bill.

Banjar

The neighborhood council inside a Balinese village. It organizes ceremonies and local rules, and in many areas it collects rubbish for about Rp 30,000–50,000 a month. Construction noise, parking and ceremony days all pass through it. Meet the banjar head before work starts.

Gross rental yield

Twelve months of rental revenue as a percentage of what you paid, with nothing deducted. Bali brochures often quote 15–20%. The figure ignores platform commission, management, running costs, empty nights and tax. It's fine for sorting listings quickly and useless for deciding whether to buy one.

Net yield

The owner's income for the year, once operating costs and tax are paid, as a share of the full amount invested. For a well-run Bali villa we consider 10–14% realistic before costs and about 8–12% after costs. On a leasehold, part of that return is your own capital coming back, not profit.

Net operating income (NOI)

Rental revenue minus operating expenses, before financing and income tax. For a villa that means platform commission, management fee, staff, power, repairs and the reserve. Divide NOI by the price and you get a yield before tax. Ask a seller for twelve months of it, month by month, not a single annual figure.

Operating expenses

The recurring costs of running a rental property. Alpha Partner Bali put a one- to three-bedroom villa with a pool at between Rp 10.5 and 18.2 million monthly in May 2026, management fees excluded. Staff make up the largest share, followed by electricity, pool and garden care, internet, repairs and yearly land tax.

Occupancy rate

The share of available nights that got booked. The average Bali short-term listing filled 36% of nights in the 12 months to September 2026 (AirROI). Professionally managed villas reach 60–75%. February and March run weakest, so a model that assumes peak occupancy all year overstates income.

Average daily rate (ADR)

Rental revenue divided by the nights sold. It measures price, not demand. Seminyak listings averaged about Rp 4.92 million a night over the year to September 2026, the island's highest (AirROI). A high ADR on a thin calendar can earn less than a modest rate with most nights booked.

RevPAR

Revenue per available room

Revenue per available night: ADR multiplied by occupancy. It folds price and demand into one number, the fairest basis for comparing villas across areas. A villa charging Rp 4 million a night at 50% occupancy has a RevPAR of Rp 2 million. One charging Rp 3 million at 70% beats it with Rp 2.1 million.

Cash-on-cash return

A year's pre-tax cash flow divided by the cash you actually put in. For a villa bought outright with no staged payments or loans, it lands close to net yield before tax. The two drift apart when you pay in stages, borrow at home or spend on furniture after purchase. Always ask which cash sits in the denominator.

Internal rate of return (IRR)

The yearly return that accounts for the timing of every payment in and out, including the sale at the end. Quote it with a horizon. Our 10-year model puts a Canggu leasehold villa bought for Rp 4 billion at an IRR of about 5%. Lose a few points of occupancy, or buy a short lease, and it drops fast.

Payback period

The number of years it takes income to return what you invested. Brochures often say six or seven, simply dividing price by gross annual takings. Measure the whole outlay against the owner's real take instead, and our base-case villa needs about 12 years. Ask which formula sits behind any figure you're shown.

Lease run-off

The value a leasehold loses each year as it moves toward expiry, since every year used is one fewer to sell. On a straight line, a Rp 5 billion villa on a 25-year lease gives up Rp 200 million a year (our calculation). Subtract it from rental income before you call what remains profit.

Freehold premium

How much more a freehold villa costs than a comparable leasehold. No island-wide ratio exists. Propertia's March 2026 data on finished villas ran from no premium at all in Nusa Dua to 10% in Jimbaran and 76% in Uluwatu. For a leasehold, the years remaining move the price more than any rule of thumb.

Are

The land unit Bali prices are quoted in: one are equals 100 m² (≈ 1,076 sq ft), and 100 ares make a hectare. An are of freehold in central Canggu was listed at Rp 1.2–2.5 billion in May 2026 (Magnum Estate). A lease on the same are runs Rp 25–45 million a year (Brighton, February 2026).

NJOP

Official tax valuation

The regency's official valuation of land and buildings, used as the base for the yearly PBB-P2 bill. For years it sat far below market value and the tax was small change. Badung has been revising it upward, and some owners saw their bills jump (NusaBali, August 2025). Check the NJOP on the latest notice.

Tax number (NPWP)

Nomor Pokok Wajib Pajak

Indonesia's 16-digit taxpayer number, issued by the tax directorate. A foreigner holding a KITAS or KITAP can get one free through Coretax, usually within one to five working days. Banks, notaries and management companies ask for it on most property matters. A PT PMA gets its own number, separate from those of its shareholders.

Coretax

The tax directorate's online system, live since January 1, 2025. Registration, returns, withholding slips and payments all run through it. Under PMK 81/2024, tax withheld on rent must be paid by the 15th of the following month, with the report filed by the 20th. Individuals file annual returns by March 31.

Tax residency

You become an Indonesian tax resident after more than 183 days here within any 12-month period, or by showing intent to live here. Residents are taxed on worldwide income at 5–35% and pay a final 10% on Bali rent. Non-residents are taxed only on income from Indonesian sources.

Withholding tax (PPh 26)

The 20% tax on Indonesian income paid to a non-resident with no permanent establishment here. For an owner living abroad, it falls on gross rent with no deduction for costs. Treaties generally give the taxing right over real estate income to the state where the land lies, so they seldom reduce the rate.

Final tax on rent

PP 34/2017

A resident landlord's income tax on leasing land or buildings, set by PP 34/2017 at a flat 10% of the gross rent. Because it's final, costs aren't deducted and the income isn't taxed again in the annual return. When the tenant is a company, it usually withholds the tax. Nightly lets add the guest-paid PBJT on top.

Seller's income tax on a sale

PPh final 2.5%

The tax a seller pays when a registered land right changes hands: 2.5% of the gross price under PP 34/2016. It's final and must be paid before the PPAT signs the deed. Together with an agent's commission of about 5% and notary costs, it sets what a sale actually leaves you.

Transfer duty (BPHTB)

The buyer's duty on acquiring a registered land right such as Hak Pakai or HGB. Law 1/2022 caps it at 5% of the price after an untaxed allowance of at least Rp 80 million, and Badung charges the full rate. You pay it before the deed is signed, while an ordinary leasehold doesn't trigger it at all.

Land and building tax (PBB-P2)

The yearly regency tax on land and buildings, charged on the NJOP after a Rp 15 million allowance. Badung applies 0.2% to an NJOP under Rp 1 bn and 0.3% to a higher one. Denpasar applies 0.1% and 0.2%. On a leasehold, the contract decides whether you or the landowner pays the bill.

VAT (PPN)

Pajak Pertambahan Nilai

Indonesia's value-added tax. The headline rate rose to 12% in January 2025. PMK 131/2024 then set the tax base for anything outside the luxury category at eleven-twelfths of the price, which keeps the effective rate at 11%. Most Bali price lists state whether it's included. Ask when yours doesn't.

KITAS

Limited stay permit

A stay permit for one or two years, chosen by where your money comes from: work, investment, foreign income, family or retirement. It lets you live in Bali, open a local bank account and register for an NPWP. It's also what makes a foreigner eligible to hold Hak Pakai in their own name.

KITAP

Permanent stay permit

Indonesia's permanent stay permit, issued for five years and renewable. Foreigners usually reach it after several years on a KITAS or through marriage to an Indonesian citizen. Like KITAS holders, KITAP holders qualify for Hak Pakai, can register for an NPWP and don't pay Bali's tourist levy.

Remote worker KITAS (E33G)

A one-year stay permit for people whose employers or clients are outside Indonesia. Applicants prove foreign earnings of roughly Rp 1.07 billion a year and hold about Rp 35.8 million in savings over three months, at the September 2026 exchange rate. It isn't extended, so you apply again each year.

Investor KITAS (E28A)

A stay permit for foreigners who hold shares worth Rp 10 billion or more in an Indonesian company, usually their own PT PMA. It runs one or two years, and the company acts as sponsor. It fits an owner who holds a villa through a company and wants to live on the island.

Golden Visa

A five- or ten-year residence permit granted for investment, with no sponsor needed. The lowest entry point, index E28C, asks for roughly Rp 6.26 bn placed in Indonesian bonds, shares or funds for a five-year permit, and Rp 12.52 bn for ten years. It gives you residence, not land rights.

Visa on arrival (VoA)

A 30-day entry visa bought on arrival or online for Rp 500,000. You can extend it one time, for 30 more days and the same fee. Most buyers fly in on one to view property. It doesn't allow work of any kind, and overstaying costs Rp 1 million for every extra day.