Long-term rental in Bali as an investment: yearly and monthly leases

It's a steady one, not a high one. On a Rp 4,000,000,000 Canggu villa let for a year at a time, we model about 8% gross and 5–6.5% net for a tax resident. A tenant who signs for twelve months usually pays the year up front, so the villa rarely sits empty.

Published figures run both higher and lower. Global Property Guide put the average gross yield on Bali villas at 4.24% in the third quarter of 2026, using asking rents and list prices. Bali Villa Realty, an agency, quotes 7–11% net on monthly rentals in August 2026. Our model falls between the two. The gap comes from which villas get averaged and which costs get counted.

All three sources use asking prices, not signed leases.

Source: Global Property Guide, gross rental yields in Indonesia, Q3 2026, updated August 2026 (Lamudi listing data); Bali Villa Realty, Bali rental yield 2026, August 25, 2026; Rise Real Bali model

Month to month, two-bedroom asking rents sit at a median of Rp 36.0 million in Canggu, with Pererenan at Rp 37.2 million. We took them from 480 listings we collected on September 7, 2026. Signing for a full year cut the asking rent by a median 22%. In Canggu that leaves roughly Rp 28 million monthly, Rp 337 million over the year.

Other sources give wider ranges. The rental platform Inivie puts 12-month contracts across the island at Rp 15–35 million a month, with Canggu and Seminyak at the top. The table sets its monthly rents beside the net yields one agency publishes.

Industry reviews put the year-contract discount lower, at 10–17% (Propertia and Knowmads Bali, 2026). Model your villa at 10–22% and ask for a real quote.

Source: Our September 2026 survey of 480 long-term asking listings, not signed leases; Inivie, Monthly villa rental in Bali, September 25, 2026; Bali Villa Realty, Bali rental yield 2026, August 25, 2026; Propertia and Knowmads Bali, 2026

On a Rp 4 billion villa rented at Rp 28 million a month, a resident owner keeps about Rp 231 million a year. That's a 5.8% net yield, assuming one empty month between tenants. Gross rent comes to Rp 308 million, or 7.7%.

We took three costs off. Final income tax is 10% of gross rent. Pool and garden care runs about Rp 1.5 million a month, our estimate. Repairs, replacements and property tax add Rp 28 million a year. The tenant pays electricity, water and internet, so running costs stay far lighter than on a nightly villa.

A non-resident owner pays 20% instead of 10%, and net yield falls by about 0.8 points.

Source: Rise Real Bali calculation, inputs illustrative; our running costs guide, 2026

Nightly lets pay more in a good year and ask for far more work. Our short-term model on the same Rp 4 bn Canggu villa, at 60% occupancy, nets 8.2% for a tax resident. A yearly lease nets 5–6.5%. That two- to three-point gap pays for fewer guests, less cleaning and a predictable income.

Occupancy decides it. At 50% the nightly model drops to 6.8%, close to a long lease. AirROI measured 36.2% occupancy across Canggu listings in the 12 months to July 2026. In our practice, a well-run villa holds 60–75%, but a new one needs six to nine months to get there. A yearly tenant removes that gap.

One agency's worked example puts both formats within 0.1 point of each other, at about 8.8–8.9% net (Bali Villa Realty, August 2026). Our model shows a wider gap. The full nightly maths sits in our rental yield guide, and Airbnb vs direct bookings shows what platform fees take.

Nightly rental also needs a tourism license, which our license guide covers. The ministry's delisting drive, which began August 1, 2026, targets accommodation sold on booking platforms. A year-long lease to one household isn't sold there, though you should confirm your plan with a lawyer.

Source: Rise Real Bali yield model; AirROI, Canggu, 12 months to July 2026; Bali Villa Realty, August 25, 2026; Indonesian Ministry of Tourism, Permenpar 6/2025

A tax-resident owner pays a flat final 10% on gross rent (Government Regulation 34/2017), and a non-resident pays 20% under Article 26 of the Income Tax Law. Neither rate allows deductions. Maintenance, security and service charges count toward the gross even when the lease bills them on a separate line.

A company tenant withholds the tax and remits it on your behalf. A private tenant won't, so you pay it yourself. Payment is due by the 15th of the month after the rent, and reporting by the 20th in Coretax's e-Bupot. The tax office said in August 2026 that it isn't a new tax for 2027.

Residency sets the rate. You count as resident once you spend over 183 days here in a 12-month span, as our tax residency guide explains. Tax treaties usually leave rent from property to the country where the property sits, so they won't lower the rate. On Rp 336 million of rent, that's Rp 33.6 million against Rp 67.2 million. Nightly lets and the regional tax sit in our rental tax guide.

Source: Government Regulation 34/2017 and Income Tax Law 7/1983 (Article 26(1)(c)); Ortax, final tax on rented land and buildings; DDTC, DGT clarification, August 18, 2026; DDTC, service charge in the rental tax base, May 16, 2024; PwC Worldwide Tax Summaries, Indonesia, reviewed June 11, 2026

Fix six things in writing: the term, the payment schedule, the deposit, who pays utilities, what happens on early exit and what happens if you sell.

Deposits run one month's rent, sometimes two for a new or heavily furnished villa. Yearly tenants usually pay six to twelve months up front, and that prepayment is rent, not deposit. Write that the unused part comes back pro rata if either side ends the lease early, and keep the deposit on its own line.

Selling a rented villa leaves the tenancy in place. Article 1576 of the Civil Code carries over the old rule that a sale breaks no lease, unless the contract provides otherwise (Hukumonline, December 14, 2025). A buyer of a tenanted villa inherits the tenant. If you may sell during the term, put an exit clause in at signing.

Add the tenant's passport and valid stay permit, and a ban on subletting and nightly use. Electricity is billed by meter and sits outside the rent. PLN charges Rp 1,699.53 per kWh above 3,500 VA this quarter, and industry estimates put a monthly bill at Rp 2–4 million on a villa running air conditioning and a pool. Our running costs guide breaks the bill down, and the handover checklist gives you an inventory to attach at move-in.

Source: Rise Real Bali lease practice, September 2026; Bali Management Villas, annual rental agreement glossary; Hukumonline, koop breekt geen huur, December 14, 2025; PLN tariff, July–September 2026; Kompas, June 4, 2026

In our practice, tenants are remote workers, expats and families who want a base for a year or two. They cluster where the rents above are highest. Canggu and Pererenan are the deepest markets, with two-bedroom medians of Rp 36.0 and Rp 37.2 million. Our Canggu vs Pererenan guide compares the two, and the area pages for Canggu, Pererenan, Seminyak, Ubud and Sanur show current prices.

On a leasehold villa, rent isn't the whole return, because the land right runs down every year. A villa with 25 years left earns the same rent in year one and year ten, but resale value shrinks. See leasehold vs freehold and extensions before comparing yields.

A manager who handles tenants and repairs is cheaper than one running nightly stays, but still a cost; our fee guide has the ranges. Test a specific villa in the yield calculator, or browse the catalog. The price is the developer's or seller's price, and they pay our commission, so the search costs you nothing.

Source: Rise Real Bali practice, 2023–2026; Our September 2026 rental survey

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