Extra Cost in Bali Real Estate Purchase
February 27, 2023 •
2 min read
Extra costs in Bali real estate purchase

There are a number of extra, often seemingly hidden costs or extra costs in Bali real estate purchase that buyers need to be aware of, which aren’t necessarily spelled out in glossy real estate advertisements.

If you are buying a property, let’s say for USD 300K. It is likely that you will spend more than that in the process. Same goes to property owner who sold the property; most likely they will get less than the value of the sale. It is because of these extra costs that go to both property seller and buyer.

First: Notary Fee

In order to get the property ownership or right transfer, you will need notary to do the due diligence, drafting the agreement, checking legality etc.

In exchange, they get 0,5-1% of the value that you are dealing with. This percentage will be based on negotiation with the notary. Usually, this will be the responsibility of the buyer to pay.

Second: Taxes

The taxes that will be applied are different depending on the sales type and certain conditions.

For leasehold sale, the taxes that usually applied is income tax. The percentage depends on whether or not the property seller has Tax Identification Number (TIN) or commonly known as NPWP. If they have it will be 10% from the sales value. With no NPWP, it will be 20%.

In this case, this percentage is actually the responsibility of the seller but sometimes they can include it into the deal so the buyer can help to split the cost.

For freehold, it is a little bit different. We have income tax for the transfer of ownership at 2,5% of government property value or the sales value. Usually paid by the seller.

We also have BPHTB tax or land and building acquisition tax at 5% of government property value or the sales value. Usually paid by the buyer.

For freehold case, after the ownership of the property has been transferred. The new owner will have to pay land and building tax every single year. The rate is 0,5% of the assessed value of the property by the government that is changing periodically.

That’s extra costs on property sale, what do you think? Is it too much or it is fair?

To help you more with your real estate purchase, you can access our article “Negotiation Tips on Your Next Real Estate Purchases“.

If you are more comfortable to learn this article in video explanation, you can access the video mode here.

Contact us now to get more information!

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Type of property ownership dedicated for local investors or foreigners under legal cooperation in Indonesia. The freeholder of a property owns it outright, including the land it is built on. If you buy freehold, you’re responsible for maintaining your property and land, so you’ll need to budget for these costs and taxes.


Surat Hak Milik (SHM) / Surat Hak Guna Bangunan (SHGB)


Lifetime, or until it’s sold to a new owner

owner status

Indonesian individual only or foreigner who has a company in Indonesia (PMA) to buy the property under that company’s name



Type of property ownership for foreign investors who are willing to purchase the property as an individual. With leasehold, you own the property (subject to the terms of the leasehold) for the length of your lease agreement with the freeholder. When the lease ends, ownership returns to the freeholder, unless the contract states guaranteed lease extension at future market price.


Akta Sewa / Right to use – Right to rent


Average 20-30 years, with possible extension. Maximum 99 years

owner status

All people including Indonesian and foreigner with KITAS-Visa status