Last reviewed: August 2026  |  Covers acquisition, annual holding costs, sale, VAT and professional fees, with verified Bali rates.

Property Taxes in Indonesia: What You Pay to Buy, Hold and Sell

There are four moments where tax lands on Indonesian property: when you buy it, every year you hold it, when you sell it, and sometimes on the construction itself. This page sets out each, with the rates that actually apply in Bali rather than the national ceilings that get quoted instead.

One correction up front, because it appears everywhere. The seller's tax on a property transfer is 2.5%, not 5%. It was reduced in 2016. The tax office's own English-language page still shows the old 5% figure, and a great many Bali property guides have copied it. If someone quotes you 5%, they are working from a stale source.

When you buy: acquisition duty (BPHTB)

5% of the acquisition value, paid by the buyer, before the deed is signed. Every Bali jurisdiction applies the full 5%, which is also the national maximum.

The base is the transaction price, but with an important anti-avoidance rule. If the declared price is unknown or lower than the government-assessed value used for the annual tax that year, the assessed value is used instead. In Bali, where declared prices are often well below market, this rule bites regularly.

A threshold is deducted before the rate applies:

So the calculation is: 5% × (transaction price or assessed value, whichever is higher, minus the threshold).

Inheritance in the direct line is charged at 0% in both Badung and Denpasar. More distant relatives pay a nominal 0.001% in Denpasar.

Every year you hold it: land and building tax (PBB)

The national maximum is 0.5%, and this is the figure that gets misquoted as "the Bali property tax". The actual rates are far lower:

A tax-free allowance is deducted first, Rp 26,000,000 per taxpayer in Badung, granted on only one property per year where you hold several in the same region.

The assessed value is reviewed every three years in Badung, and annually for some categories.

Who pays: the person or entity that actually holds a right over, or takes benefit from, the land or building. That wording is why foreign occupiers under leasehold or Hak Pakai receive and pay the annual bill in practice, even though they are not the freehold owner.

When: the statutory maximum is six months from receipt of the assessment. Bills generally start arriving in Bali around February, with regency due dates commonly falling between the end of July and the end of August. The exact date is set locally each year, so check with your regency revenue office rather than assuming.

Gianyar, Tabanan, Buleleng and Karangasem set their own rates. Do not assume they match Badung or Denpasar.

When you sell: 2.5% final income tax

2.5% of the gross transfer value, paid by the seller before the deed, decision or auction record is signed. It is final. It does not go into your annual return to be taxed again.

Two lower rates exist: 1% for simple houses and simple apartments transferred by a developer whose main business is that, and 0% for transfers to the government for public-interest development.

The base is the gross transfer value or the government-determined value if that is higher. The same anti-undervaluation logic as the acquisition duty.

There are exemptions, including transfers by inheritance, direct-line gifts within one degree, and individuals below the taxable income threshold transferring for less than Rp 60 million where the transaction has not been artificially split.

VAT, and when it does not apply

Indonesia's headline VAT rate is 12%, but the effective rate on most goods and services is 11%. This is not a contradiction. A regulation sets the tax base at eleven-twelfths of the price, so 12% applied to that base produces 11%.

The full 12% applies only to goods that also attract luxury sales tax, which includes high-value residences.

The point most buyers miss: VAT applies only where you buy from a VAT-registered seller, in practice a developer. A private secondary-market sale between individuals who are not VAT-registered carries no VAT at all, only the 5% acquisition duty for you and the 2.5% for the seller.

Luxury sales tax

20%, on residences priced at Rp 30 billion or above. That covers luxury houses, apartments, condominiums and town houses. Below that threshold it does not apply.

If you build rather than buy

Building for yourself without engaging a contractor attracts a self-build VAT charge of 2.2% of total construction cost, excluding the land, and only where the floor area is 200 m² or more. Payable by the 15th of the following month.

You may see 2.4% quoted. A rise was predicted in 2025 and did not happen. The operative figure is 2.2%.

A current incentive worth knowing about

Through December 2026, the government is bearing 100% of the VAT on new landed houses and apartments, applied to the VAT on the first Rp 2 billion of price, for properties priced up to Rp 5 billion. If you are buying new from a developer in that range, ask whether it is being applied.

Notary and land deed official fees

These are capped by law, and the caps are widely misstated.

Land deed official (PPAT) fees follow a descending scale, not a flat 1%:

That cap is inclusive of witness fees, and overcharging carries suspension of up to six months. On a Rp 8 billion transaction, the difference between the lawful maximum and a quoted "typical 1%" is roughly Rp 60 million.

Notary fees are capped separately: 2.5% of deed value up to Rp 100 million, 1.5% from Rp 100 million to Rp 1 billion, and above Rp 1 billion by agreement but capped at 1%.

In practice Bali transactions tend to settle around 0.5%-1% of value for the combined package, with a floor on small deals and higher fees where leasehold or Hak Pakai drafting is involved. Treat that as commercial practice rather than a rule, but know the legal ceiling before you negotiate.

A worked example

A Rp 6 billion villa in Badung, bought privately from an individual, assessed value Rp 5 billion:

Illustrative only. Your assessed value, regency and structure will change the figures.

What changed recently

• Regional taxes consolidated. Every region now has a single combined local tax regulation. Bali's took effect from January 2024, replacing the older rules.
• VAT moved to 12% statutory / 11% effective from January 2025, with the full 12% on luxury-taxed goods from February 2025.
• The housing VAT incentive was extended through the end of 2026.
• Coretax, the new tax administration system, went live in January 2025 and now handles registration and filing.
• The 66% surcharge introduced under the regional tax law applies to vehicle taxes only, not to property. Some Bali guides imply otherwise.

Common questions

What is the property transfer tax in Indonesia?

Two separate taxes on the same transaction: the buyer pays 5% acquisition duty on the value above the threshold, and the seller pays 2.5% final income tax on the gross transfer value. The 5% seller's rate you may see quoted was superseded in 2016.

How much is annual property tax in Bali?

0.1% a year on assessed values up to Rp 1 billion and 0.2% above, in both Badung and Denpasar, after deducting a tax-free allowance of Rp 26 million in Badung. The 0.5% figure often quoted is the national maximum, not any actual Bali rate.

Do I pay VAT when buying property in Indonesia?

Only when buying from a VAT-registered seller, in practice a developer. A private sale between individuals who are not VAT-registered carries no VAT. Where it applies the effective rate is 11%, rising to 12% for residences also subject to luxury sales tax.

Who pays the annual land and building tax on a leased property?

The law places it on whoever holds a right over or takes benefit from the land or building, which is why foreign occupiers under leasehold or Hak Pakai commonly receive and pay the bill. Who bears it commercially is usually set by the lease, check yours.

What is the real cap on notary fees?

Land deed official fees are capped on a descending scale from 1% below Rp 500 million down to 0.25% above Rp 2.5 billion, inclusive of witness fees. Notary fees are capped separately, at 1% above Rp 1 billion of deed value.

Getting the numbers right before you commit

The assessed value drives both the acquisition duty and the annual tax, and it is frequently different from what a seller or agent assumes. Checking it before you agree a price is a short piece of work that changes the real cost of the deal.

We advise foreign buyers and sellers in Bali on transaction costs, title checks and the tax consequences of how a purchase is structured. For the ongoing tax on letting the property, see our guide to rental income tax in Indonesia. To decide how to hold it in the first place, see leasehold vs freehold in Bali.

General information on Indonesian tax law as at August 2026, not tax or legal advice. Rates are set regionally and change; the Badung and Denpasar figures here are taken from the current local regulations and other regencies differ. Confirm your position before committing funds.

Sources

• UU No. 1/2022 on Financial Relations between Central and Regional Government: Articles 38-47
• Perda Badung No. 7/2023. Articles 7-9 (annual tax), 12-14 (acquisition duty)
• Perda Kota Denpasar No. 5/2023: Articles 6, 8, 12, 13
• PP No. 34/2016: Article 2(1), seller's 2.5% final tax
• PMK No. 131/2024, VAT base and effective rate
• PMK No. 15/2023, luxury sales tax threshold for residences
• PMK No. 61/2022 and PMK No. 11/2025, self-build VAT
• PMK No. 90/2025, government-borne VAT on housing through 2026
• Permen ATR/BPN No. 33/2021, land deed official fee scale
• UU No. 30/2004: Article 36(3), notary honorarium caps