- Rental income tax for non-residents: a flat ~10% on gross rental revenue.
- Annual land & building tax (PBB) is small — usually tens of dollars.
- Transfer taxes apply on purchase and resale; budget them into the model.
- Taxes here are simple and low compared to most home jurisdictions.
Tax is the pleasant surprise of Bali villa economics: the system is flat, low and predictable. Here is the complete list of what an owner actually pays — no more, no less.
Rental income tax
Non-resident rental income is taxed at a flat ~10% of gross rental revenue, typically withheld and remitted by the management company. It is already inside our worked P&L and the ROI calculator — the 12.8% net figure is after tax.
Annual and transactional taxes
PBB (land & building tax) — a symbolic annual amount, usually under $100 for a villa. On purchase: transfer duties and notary costs, usually built into the deal structure and disclosed upfront. On resale: a seller's tax on the transaction value — factor it into exit planning (how resale works).
FAQ
Who files and pays the rental tax?
In practice the management company withholds and remits it monthly; owners receive net payouts with reporting.
Do I need an Indonesian tax number?
For a standard leasehold + management setup usually not; structures via a PMA company have their own accounting — see the PMA vs leasehold guide.
Are there taxes on owning through the years?
Only the small annual PBB; there is no wealth tax on a leasehold villa.