What are the tax implications of buying a villa and leasing land in Bali?

When buying a villa and leasing land in Bali, there are several taxes and fees that you may need to pay, including:

• Value-Added Tax (VAT): This is a tax imposed on the sale of new properties and is typically around 10% of the purchase price. However, if the seller is not a taxpayer or does not have a VAT ID number, the tax rate is increased to 20%.Land and Building Acquisition Tax (BPHTB): This is a tax on the transfer of ownership of land and buildings and is typically calculated based on the sales price or the assessed value of the property, whichever is higher. The tax rate varies depending on the location and value of the property but can range from 1% to 5%.Notary and Land Deed Fees: You will need to pay fees to the notary for drafting and registering the land deed, which is typically around 1% of the sales price.Legal Fees: You will need to hire a lawyer to assist with due diligence, drafting contracts, and register the property, which can cost around 1-2% of the purchase price.Rental Income Tax: If you plan to rent out the villa, you will need to pay income tax on the rental income. The tax rate varies depending on your residency status and can range from 5% to 30%.
It is important to note that taxes and fees can change over time, and the above information is accurate as of 2023. We recommend consulting with a qualified tax advisor or lawyer to get up-to-date information on tax implications when buying a villa and leasing land. Please Contact Us for more information on this subject