balivillacareInheriting a Bali villa as a foreigner: what passes, and what it costs
Key takeaways
- A house on hak pakai can be inherited; a foreign heir needs an immigration document (PP 18/2021, Pasal 69).
- Freehold inherited by a foreigner must be released within a year, or it lapses and the land falls to the State (UUPA Pasal 21(3)).
- A lease passes as its contract says. A nominee “freehold” was void to begin with.
- Inheritance is outside the seller's 2.5% transfer tax, but it is a BPHTB acquisition, owed when the heir registers the transfer at the land office.
- Family inheritance has a higher non-taxable value: IDR 300 million in Badung and Gianyar, IDR 700 million in Denpasar, and 0% for first-degree family.
Foreign owners plan the purchase in detail and the succession hardly at all. What a foreign heir receives depends entirely on which right the villa was held under — and one of the common arrangements leaves the heir nothing.
Seven words in a Bali succession
The terms the land and tax rules use.
| Term | What it is | What it means for an heir |
|---|---|---|
| Waris | Inheritance. | A BPHTB object, but outside the seller's 2.5%. |
| Ahli waris | Heir. | A foreign heir must meet the same rules as a foreign buyer. |
| Hibah wasiat | Bequest by will. | Treated with inheritance for BPHTB. |
| NPOPTKP | The non-taxable value. | Higher for family inheritance than for a purchase. |
| Pewarisan tanpa wasiat | Inheritance without a will. | The case UUPA Pasal 21(3) names. |
| Hapus karena hukum | Lapses by law. | What happens to freehold a foreigner keeps beyond a year. |
| Kantor Pertanahan | Land office. | Where the transfer is registered, and BPHTB becomes owed. |
What passes, right by right
| What happens to it | Rule | |
|---|---|---|
| Freehold (hak milik) | Must be released within a year if the heir is a foreigner | UUPA Pasal 21(3) |
| House on hak pakai | Can be inherited; a foreign heir needs an immigration document | PP 18/2021 Pasal 69(2)-(3) |
| Lease (hak sewa) | What the lease says about death and assignment | The contract; not set by the texts read |
| Shares in a PT PMA | Company law and the articles of association | Not read for this page |
| Nominee “freehold” | Void; nothing valid to inherit | UUPA Pasal 26(2) |
A house on hak pakai
PP 18/2021 Pasal 69(2): when a foreign owner dies, the house can be inherited by the heirs. If an heir is a foreigner, the heir must have an immigration document under the law (ayat (3)) — the same condition as for a foreign buyer. What counts as an immigration document now.
Freehold that reaches a foreigner
The Agrarian Law allows inheritance without a will to bring freehold to a foreigner, and then gives one year: the foreign heir must release it within a year of acquiring it, or the right lapses by law and the land falls to the State, with others' rights over it continuing (UUPA Pasal 21(3)). A dual citizen is treated the same (Pasal 21(4)). This is the case of a foreigner inheriting from an Indonesian parent or spouse.
A lease
The Agrarian Law defines the lease on land for a building (Pasal 44-45) but says nothing about death; the lease agreement does. Whether the term passes to heirs, and whether the landlord must consent, is a clause to read now.
A nominee arrangement
Any act meant to pass freehold to a foreigner indirectly is void, and payments made cannot be reclaimed (UUPA Pasal 26(2)). The heir of a foreigner who “owned” through a local name inherits a claim the law does not recognize.
Planning a Bali succession?
Tell us which part of Bali the villa is in. Five questions, and your details are the last step.
The taxes on an inheritance
Not the 2.5%
The seller's final tax on transfers does not apply to a transfer by inheritance (PP 34/2016, Pasal 6).
BPHTB, with a family allowance
Inheritance and bequests are BPHTB objects (UU 1/2022, Pasal 44(2)(a)), and the tax is owed when the heir registers the transfer at the land office (Pasal 49(c)). The base is market value, less a non-taxable value that is higher for close family than for a purchase:
| Family non-taxable value | Family rate | Rule | |
|---|---|---|---|
| Badung | IDR 300,000,000 | 0% within first-degree family | Perda 7/2023, Pasal 12-13 |
| Gianyar | IDR 300,000,000 | 0%, including adopted children and spouses | Perda 7/2023, Pasal 12-13 |
| Denpasar | IDR 700,000,000 | 0% for descendants; 0.001% for wider family | Perda 5/2023, Pasal 12-13 |
Outside these family cases the ordinary 5% rate applies, except that Denpasar charges 0.001% for wider family too. BPHTB on a purchase.
Taxes at home
The heir's own country may tax the inheritance; that is outside Indonesian law.
What this page does not cover
- Wills and probate procedure. Civil-law succession rules were not read. Lifetime gifts: hibah, BPHTB and income tax.
- Inheriting PT PMA shares. Company law and articles of association, not read here.
- Lease clauses. The Civil Code's lease provisions were not available in an official copy.
Common questions
Can a foreigner inherit a villa in Bali?
It depends on what was owned. A house on hak pakai can be inherited, and a foreign heir needs an immigration document (PP 18/2021, Pasal 69). Freehold inherited by a foreigner must be released within a year, or the right lapses and the land falls to the State (UUPA Pasal 21(3)). A lease follows its own terms.
Is there inheritance tax on Bali property?
The transfer by inheritance is excluded from the 2.5% final tax on transfers (PP 34/2016, Pasal 6). The heir's acquisition is a BPHTB object, owed when the heir registers the transfer, with a higher non-taxable value for close family: IDR 300 million in Badung and Gianyar, IDR 700 million in Denpasar, and a 0% rate for first-degree family.
What happens to a leasehold villa when the lessee dies?
The Agrarian Law defines the lease but does not say what happens on death; the lease agreement does. It is the clause to read before the question arises.
What about a villa held in an Indonesian friend's name?
Any act meant to transfer freehold to a foreigner indirectly is void, and payments made cannot be reclaimed (UUPA Pasal 26(2)). The heir of the foreigner inherits nothing valid in the land.
Who pays the BPHTB on an inheritance?
The heir, as the person acquiring the right (UU 1/2022, Pasal 45).
Sources cited on this page
- UU No. 5 Tahun 1960 (UUPA) — Pasal 21, 26
- PP No. 18 Tahun 2021 — Pasal 69
- PP No. 34 Tahun 2016 — Pasal 6, inheritance excluded
- UU No. 1 Tahun 2022 — Pasal 44, 49
- Perda Kab. Badung No. 7 Tahun 2023 — Pasal 12-13
- Perda Kota Denpasar No. 5 Tahun 2023 — Pasal 12-13
Every figure above links to the source it was read from. This page was last changed on 6 October 2026. How we check this.