What you owe at purchase depends on what actually changes hands. If a title moves into your name, as with <a href="/glossary/#hak-pakai">Hak Pakai</a> (a right-to-use title) or <a href="/glossary/#hgb">HGB</a> held by your company, you owe BPHTB. Law 1/2022 caps it at 5%, and both Badung and Denpasar charge the full 5% under their 2023 regional regulations.

The duty is charged on the price minus an allowance of Rp 80,000,000. In Badung that allowance applies only to your first acquisition in the regency, so a second villa there gets none. The seller, meanwhile, pays a final 2.5% income tax on the gross price under PP 34/2016.

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Rent from a Bali villa carries two separate taxes. Jakarta levies income tax on what the owner earns. The regency levies PBJT, a tax on accommodation that the guest pays on top of the nightly rate. One doesn't replace the other, and on a nightly let you face both.

PBJT is what used to be called PHR, the hotel and restaurant tax. Law 1/2022 folded PHR into a broader tax on specific goods and services and capped the accommodation rate at 10%. Badung charges the full 10% under Perda 7/2023, and the list explicitly covers villas and private homes used as hotels. Because a nightly stay carries PBJT, VAT doesn't apply to it.

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Holding a lease on a villa doesn't require a tax number. You need one once Indonesia has a reason to tax you: you earn rent here, you become a tax resident, you let out a home you hold on <a href="/glossary/#hak-pakai">Hak Pakai</a>, or you sit on the board of an Indonesian company, including your own <a href="/glossary/#pt-pma">PT PMA</a>.

Since the 2024 reform, the number has 16 digits. Indonesians use their national ID number, while foreigners get a separate one. Beyond tax returns, you'll be asked for it by banks, by a management company paying out your rent, and by a developer if you claim the 2026 VAT relief on a new home.

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Bank Indonesia regulation 17/3/PBI/2015 requires rupiah for every cash and non-cash payment inside the country and for every price quote. So does any contract between two parties in Indonesia. A price list in another currency is a reference, and the <a href="/glossary/#ppjb">PPJB</a> and the deed carry a rupiah figure.

Settle in another currency and the fine is 1% of the transaction, up to Rp 1,000,000,000. Law 7/2011 adds up to a year's detention and a Rp 200,000,000 fine for refusing rupiah. So agree the rupiah price before you sign, and decide who carries the exchange-rate risk between stages.

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An Indonesian mortgage is secured by Hak Tanggungan, a charge registered against a land title. Law 4/1996 lists what it can attach to: freehold (<a href="/glossary/#hak-milik">Hak Milik</a>), HGU, the right to build (<a href="/glossary/#hgb">HGB</a>), and a registered <a href="/glossary/#hak-pakai">Hak Pakai</a> that can be transferred. PP 18/2021 confirms a fixed-term Hak Pakai can be pledged.

A lease isn't on that list. It's a contract between you and the landowner, signed at a notary and never entered in the land register. The villa built on leased land can at most back a loan through a fiducia, a pledge over movable assets, which no bank uses to fund a home purchase.

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It's a set of visa indexes, not a separate law. The program runs under Justice and Human Rights Ministry Regulation 22/2023 as amended by 11/2024, and it opened on July 25, 2024. Every index gives a residence permit for five or ten years in one go.

The practical difference from an ordinary investor <a href="/glossary/#kitas">KITAS</a> is the sponsor. A standard <a href="/glossary/#e28a">E28A</a> needs a sponsoring Indonesian company in which you own shares worth Rp 10 billion or more, and it lasts one or two years. Golden Visa applicants file directly on the immigration portal, evisa.imigrasi.go.id, with no sponsor at all.

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A visa on arrival costs Rp 500,000 and gives 30 days. You can extend it once, for another 30 days at the same price, so 60 days is the ceiling. The electronic version, the e-VOA, costs the same. Buy it online at least two days before you fly and you skip the payment counter at arrivals.

The extension is now fully online, with no trip to an immigration office. The Yogyakarta immigration office puts the window at no earlier than 14 days after arrival and no later than seven days before the permit runs out. Every foreign visitor to Bali also pays a Rp 150,000 tourist levy once per entry, through the Love Bali system.

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Indonesian land law still runs on a statute from 1960, the Basic Agrarian Law, known locally as UUPA. Under Article 21 only Indonesian citizens may hold <a href="/glossary/#hak-milik">Hak Milik</a>, the country's version of freehold. Article 26(2) shuts the obvious workaround: a deal that moves Hak Milik to a foreigner, directly or through someone else, is void, and the land goes to the state.

That restriction targets one title rather than property as a whole. The same law, fleshed out by Government Regulation 18 of 2021, lets foreigners hold other rights over land and buildings. They differ mostly in price and in how long they last.

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True freehold in Indonesia, Hak Milik, belongs to citizens only (Basic Agrarian Law 5/1960, Article 21). When a Bali agent says a villa is freehold, the land title is Hak Milik held by an Indonesian. For you, that villa can become one of two things.

One is <a href="/glossary/#hak-pakai">Hak Pakai</a>, a right-to-use title recorded in your own name, which requires a stay permit and a house priced at Rp 5 bn or more. The other is <a href="/glossary/#hgb">HGB</a>, a right to build that your own <a href="/glossary/#pt-pma">PT PMA</a> holds for you. On state land either can stretch to 80 years, granted as 30, extended by 20 and renewed for 30 under PP 18/2021.

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Indonesian land rights are listed in the Basic Agrarian Law (5/1960) and detailed in PP 18/2021. Four of them come up when you buy a villa, and only one lets a foreign individual appear on the certificate.

<a href="/glossary/#hak-milik">Hak Milik</a> (SHM) is freehold with no end date, open to Indonesian citizens only. <a href="/glossary/#hgb">HGB</a>, the right to build, is held by citizens and Indonesian companies, including a <a href="/glossary/#pt-pma">PT PMA</a> with foreign shareholders. Hak Pakai, the right to use, can be held personally by a foreigner who lives in Indonesia. <a href="/glossary/#hak-sewa">Hak Sewa</a> is a lease, a private contract rather than a registered land right.

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A leasehold (<a href="/glossary/#hak-sewa">Hak Sewa</a>) is a contract to use someone else's land and building for a set period. It isn't a registered land right. It lasts exactly as long as the contract says, on the terms the contract sets.

When the term ends, the plot and everything built on it go back to the landowner. There's no buyout by default, no automatic renewal and no statutory compensation for the villa you paid for. Anything you want at that point, from a right to extend to payment for the building, has to be in the agreement already.

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PT PMA stands for Perseroan Terbatas Penanaman Modal Asing, a limited company with foreign investment. For most business activities, including real estate and accommodation, foreigners can hold up to 100% of the shares. You register it through OSS, the government's single online licensing system run by the Ministry of Investment.

For property, the point of the company is the title it can hold. A PT PMA can't hold freehold (<a href="/glossary/#hak-milik">Hak Milik</a>), which the Basic Agrarian Law keeps for citizens. It can hold HGB, a right to build (Hak Guna Bangunan), for 30 years plus a 20-year extension and a 30-year renewal under PP 18/2021.

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An Indonesian citizen buys the land as freehold (<a href="/glossary/#hak-milik">Hak Milik</a>) in their own name, often a friend, a staff member or someone the seller suggests. The foreigner pays. To feel protected, the foreigner signs a stack of side documents with the nominee: a loan agreement, a power of attorney, a lease back to the foreigner, sometimes a pledge over the certificate.

On paper it looks like ownership without the time limit of a lease, and without the Rp 5 bn and Rp 2 bn floors that <a href="/glossary/#hak-pakai">Hak Pakai</a> sets for a Bali house and apartment. It's usually pitched as cheaper and faster. Neither claim survives a dispute.

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A Bali deal rests on one document: the land certificate issued by ATR/BPN, Indonesia's land agency. It names the holder, the type of right and the plot area, plus the expiry date for time-limited rights. Everything else in the file hangs off it.

The certificate won't tell you whether the plot can carry a villa, whether a bank holds a mortgage over it or whether the village has a claim. Those are separate checks, and each has its own source.

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A project has a brand, and the contract has a legal entity. They're often different, and that's normal. What matters is that one company appears everywhere: on the land certificate or lease, on the building approval, in the draft <a href="/glossary/#ppjb">PPJB</a> and on the bank account you're asked to pay into.

If the seller is one PT and the invoice names another, stop and ask why in writing. There can be a clean answer, such as a land-holding company and a separate construction contractor. Get it on paper before the first transfer.

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Every regency in Bali prepares an RDTR, a detailed spatial plan that assigns each block a zone: housing, tourism, trade, agriculture, protected land. The zone decides whether a villa, a guesthouse or nothing at all can stand on the plot.

Above the RDTR sits the provincial frame. Provincial Regulation 2/2023 on Bali's spatial plan for 2023–2043 replaced Perda 16/2009 and its 2020 amendment. If a contract or pitch deck still cites the 2020 text, someone drafted it against rules that no longer apply.

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PBG, or Persetujuan Bangunan Gedung, is the approval of a building's design against local building standards. The regency issues it before construction starts, through SIMBG, the government's online building system. PP 16/2021, which implements the Buildings Law 28/2002, brought it in to replace the old IMB.

A PBG proves the authorities approved the project. It doesn't prove the building on site matches the drawings or passed an inspection. That's a different document.

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The rule didn't change much. Enforcement did. Indonesia's Ministry of Tourism started a program in March 2025 to bring private villas and homestays into the licensing system, and it recruited the booking platforms to check.

The first deadline for listings was March 31, 2026. The ministry then moved to a phased approach. From August 1, 2026, a verified group of about 1,600 unlicensed operators faces delisting. From June 2027, the platforms plan to check each listing's NIB, activity code and business activity number against OSS automatically.

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Freehold (<a href="/glossary/#hak-milik">Hak Milik</a>) is for Indonesian citizens only. A foreign buyer holds Bali property in one of three ways, and that choice sets your paperwork and your taxes before you've seen a single villa.

Leasehold (<a href="/glossary/#hak-sewa">Hak Sewa</a>) is the most common route for villas. You lease land and building for a fixed term from the owner, with no visa requirement. A right-to-use title (<a href="/glossary/#hak-pakai">Hak Pakai</a>) is registered in your own name, but you need an Indonesian residence permit to hold it. A foreign-owned company (<a href="/glossary/#pt-pma">PT PMA</a>) can hold a right to build (<a href="/glossary/#hgb">HGB</a>) and is the usual structure for someone running a rental business at scale.

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A notary works under Law 30/2004 on the notary's office, amended by Law 2/2014, and answers to the Ministry of Law. Notaries draft and certify contracts, powers of attorney, wills, company deeds for a <a href="/glossary/#pt-pma">PT PMA</a> and, the one that matters most to foreign buyers, long-term lease agreements.

A PPAT (Pejabat Pembuat Akta Tanah) is a land deed official under PP 37/1998 as amended by PP 24/2016, supervised by the land ministry (ATR/BPN). A PPAT signs only deeds that change an entry in the land register: a sale, a grant of <a href="/glossary/#hgb">HGB</a> or <a href="/glossary/#hak-pakai">Hak Pakai</a>, a mortgage.

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Good completed stock is thin. About one listing in three in our catalog is a finished home, and the rest are still under construction. Developers fund construction with buyers' payments, so they price the early stages lower and spread the schedule across the build.

Here's the trade: you pay for a house that doesn't exist yet. So your homework moves from the floor plan to the paperwork and the contract.

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The base rate is simple. Transferring land and building rights costs the seller a final income tax (PPh final) equal to 2.5% of the transaction value, per PP 34/2016. It's charged on the price, not your profit, so a sale at a loss still pays it. You pay before signing, and the <a href="/glossary/#ppat">PPAT</a> won't sign until the tax office's system validates the payment.

Non-resident sellers pay the same 2.5% on land and buildings, not the 20% withholding rate that applies to other Indonesian income. Get an Indonesian tax number (<a href="/glossary/#npwp">NPWP</a>) before you list. Practitioners report that sellers without one run into higher withholding and slower validation.

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