What the regency decided
PBB-P2, the rural and urban land and building tax, no longer applies in Gianyar from 2026 to homes, rice paddies (sawah) and dry farmland (tegal). Regent I Made Mahayastra announced the policy.
The tax remains in place only for property used for business.
Why
The regent said the measure supports household economies and protects farmland from being converted. He described green space as part of what draws tourists to Bali.
The policy builds on Gianyar Perda No. 1/2020 on protected food farmland (LP2B, lahan pertanian pangan berkelanjutan) and Perda No. 1/2025, which provides subsidies and tax relief for such land.
Local council response
The chair of Commission IV of the Gianyar DPRD called the move strategic for protecting farmers. He described it as a strong barrier against land conversion.
Gianyar includes Ubud, where many villas sit next to rice fields.
What LP2B means
LP2B, sustainable food farmland, is land the regency has locked into agricultural use. Homes or villas cannot be built on it.
The PBB-P2 exemption makes owning a rice field cheaper for farmers. The idea is to give owners fewer reasons to sell land for development.
For buyers, it means a plot among rice fields may be unbuildable even if the seller says otherwise.
You can check a plot's status in the regency's zoning documents and through a notary. Do this before paying a deposit, not after.