Your ultimate 2026 guide to Bali real estate investment. Learn how to obtain an Investor KITAS (E28A), understand tax rates (VAT, BPHTB, Income Tax), and master legal property ownership via PT PMA and Leasehold.

Indonesia and the island of Bali remain in the focus of international investors. In 2026, the legislation has become more transparent and digitized, which requires investors to understand the legal nuances before starting a deal. Below is an overview of the key rules for those planning long-term investments in real estate.

1. Residency Pathways: Investor KITAS (E28A)

To reside on the island and manage your assets legally, the most relevant option is the Investor KITAS (E28A):

• Target Audience: Entrepreneurs and business owners operating through a PT PMA (foreign-owned company).
• Requirements: A company registration with an investment plan of at least 10 billion IDR (~$635,000) and a paid-up capital of at least 1 billion IDR (~$63,500) per shareholder.
• Benefits: Grants legal status as an investor, allowing you to manage your business activities and providing a foundation for long-term residency.

Alternative: Second Home Visa. Designed for passive investors. Requires a deposit of 2 billion IDR (~$127,000) in an Indonesian state bank or an equivalent property purchase. Issued for 5 or 10 years.

2. Taxes Upon Property Acquisition

• VAT (PPN): 11%. Applies only when purchasing new property from a developer that is a registered taxable entity (PKP).
• Acquisition Tax (BPHTB): 5%. Paid by the buyer upon transfer of title (Freehold/Hak Milik) or right to build (HGB). Not applicable to Leasehold.
• Notary Fees: Approximately 1% of the transaction value for official PPAT notary services.

3. Taxation of Rental Income, Assignments, and Sales

• Rental Income:
  • Non-residents: 20% Withholding Tax.
  • Residents (with NPWP): 10% final tax.
• Corporate Tax (PT PMA): Standard rate is 22% of net profit. Companies with an annual turnover up to 50 billion IDR (~$3.18M) receive a 50% discount on the standard rate for the portion of income corresponding to a turnover of up to 4.8 billion IDR (~$305,000), resulting in an effective rate of 11% on that portion.
• Property Sale (Freehold/HGB): The seller pays a final tax of 2.5% on the transaction value.
• Leasehold Assignment: If you transfer your Leasehold interest (Assignment of Lease) before the contract expires, the income is taxed similarly to rental income (10% for residents, 20% for non-residents).

FAQ

• Can I get a KITAS by buying property? Not automatically. You must register a PT PMA company and meet the mandatory investment capital requirements.
• What is the difference between Leasehold and HGB? Leasehold is a long-term rental (25–30 years). HGB (Right to Build) is a property right held by a company (PT PMA), essential for commercial use.
• Do I need an NPWP? Yes, an Indonesian tax ID is essential for tax optimization and legal financial activity.

Disclaimer: This information is for educational purposes and is current as of June 2026. Tax laws are subject to change. Always consult with qualified legal and tax professionals regarding your specific situation to ensure compliance and risk mitigation.