- Rental income tax for non-residents is 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, so 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 and 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, so the 12.8% net figure is after tax.
Annual and transactional taxes
PBB (land & building tax) is a symbolic annual amount, usually under $100 for a villa. On purchase you pay transfer duties and notary costs, usually built into the deal structure and disclosed upfront. On resale there is a seller's tax on the transaction value, so 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, and 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.