balivillacareSelling a Bali villa: the taxes on the way out
Key takeaways
- The seller pays a final income tax of 2.5% of the gross transfer value — on the price, not on the gain.
- It is paid before the deed is signed. The official will not sign without proof.
- The buyer pays BPHTB: 5% in Badung, on the transaction price, or the NJOP if higher, less IDR 80,000,000 for a first acquisition there.
- On an IDR 10 billion sale, that is IDR 250 million from the seller and about IDR 496 million from the buyer.
- A lease is not on the list of rights BPHTB taxes. Leasehold transfers are a different question.
A villa's yield is only finished when it is sold. Two taxes sit between the price agreed and the money received, one on each side of the table, and both have to be paid before anyone signs. Neither is a tax on profit.
Seven words on a sale file
The terms a notary's checklist will use.
| Term | What it is | What it means for the sale |
|---|---|---|
| PPh final, 2.5% | The seller's final income tax on the transfer. | On the gross price, not the gain. |
| BPHTB | The acquisition tax on land and building rights. | Paid by the buyer, 5% in Badung. |
| NPOPTKP | The non-taxable acquisition value. | IDR 80,000,000 off the base, for a first acquisition in the regency. |
| NJOP | The official assessed value used for the land tax. | The floor for the BPHTB base. |
| PPJB | The binding sale agreement. | When BPHTB becomes owed, if there is one. |
| AJB | The sale deed, signed before a PPAT. | Both taxes must be paid before it is signed. |
| PPAT | The land deed official, usually a notary. | Signs only on proof of both payments. |
The seller's side: 2.5% of the gross
What is taxed
PP No. 34 Tahun 2016 charges a final income tax on income from transferring rights to land and/or buildings: by sale, exchange, release, gift, auction, inheritance or any other agreed means. For an ordinary villa sale the rate is 2.5% of the gross transfer value (Pasal 2(1)(a)), and the value is the price actually received in an arm's-length sale (Pasal 2(2)(d)). Between related parties it is the value that should have been received.
Final, and on the price
Final means the tax is not recalculated later against the villa's cost. A villa sold for less than it cost still carries 2.5% of the sale price. There is no separate capital gains tax on top.
When it is paid
The seller deposits the tax itself before the deed is signed, and the official signs only when shown proof of payment (Pasal 3(1) and (5)). The land office will not register the transfer without the payment slip either (Pasal 7).
What is excluded
Among the exclusions in Pasal 6: transfers by inheritance; gifts to first-degree blood relatives; and an individual with income below the non-taxable threshold selling for less than IDR 60,000,000. None of these describes an ordinary villa sale.
Planning an exit?
Tell us which part of Bali the villa is in. Five questions, and your details are the last step.
The buyer's side: BPHTB
Who pays and on what
BPHTB is the acquisition tax on obtaining rights to land or buildings, and the taxpayer is the buyer (UU No. 1 Tahun 2022, Pasal 45). For a sale the base is the transaction price — or, if that is unknown or below the NJOP used for the land tax that year, the NJOP (Pasal 46). The law caps the rate at 5% and leaves it to each regency (Pasal 47).
Badung's rule
Badung sets BPHTB at 5%, with IDR 80,000,000 deducted for a taxpayer's first acquisition in the regency (Perda 7/2023, Pasal 12-13). It is owed from the signing of the binding sale agreement, or of the deed if there is none, and must be paid by the signing of the sale deed at the latest. The PPAT signs, and the land office registers, only on proof of payment (Pasal 15-16). The 2025 amendment to the Perda leaves these articles as they were.
Which rights it covers
Pasal 44(3) lists the rights: ownership, HGU, HGB, hak pakai, strata title, management rights. A lease is not among them. What a foreign owner actually holds.
The same sale, both sides
An illustration of the arithmetic, not a price from any villa: a freehold villa in Badung sold at arm's length for IDR 10,000,000,000, to a buyer making a first acquisition in the regency.
| Amount | Rule | |
|---|---|---|
| Sale price | IDR 10,000,000,000 | Transaction price |
| Seller's final income tax, 2.5% | IDR 250,000,000 | PP 34/2016, Pasal 2 |
| Buyer's BPHTB base | IDR 9,920,000,000 | Price less IDR 80,000,000 |
| Buyer's BPHTB, 5% | IDR 496,000,000 | Perda Badung 7/2023, Pasal 13-14 |
| Both, before the deed | IDR 746,000,000 | Pasal 3 PP 34/2016; Pasal 16 Perda |
Deed fees, agent commission and any other costs of the sale sit on top and are not set by these regulations.
What it does to a yield
The seller's 2.5% comes straight off the exit price. A yield worked out from rent alone leaves it out. Why quoted yields differ, and the estimator for the running side.
What this page does not cover
- Leasehold assignments. How a transfer of a remaining lease term is taxed was not read.
- Selling the shares of a PT PMA. A company share sale is a different transaction.
- Gianyar and Denpasar BPHTB rates. Only Badung's Perda was read for BPHTB.
- Tax treaties for non-resident sellers. Not read.
Common questions
What tax do I pay when I sell a villa in Bali?
The seller pays a final income tax of 2.5% of the gross transfer value (PP No. 34 Tahun 2016, Pasal 2), before the deed is signed. The buyer pays BPHTB, at 5% in Badung on the price less IDR 80,000,000 for a first acquisition in the regency.
Is there capital gains tax on Bali property?
Not as a tax on the gain. The seller's tax is final and charged on the gross price: 2.5% whether the villa sold at a profit or a loss.
Who pays BPHTB, the buyer or the seller?
The buyer. The taxpayer is the person or body acquiring the right (UU No. 1 Tahun 2022, Pasal 45).
When are the taxes paid?
Both before the deed is signed. The seller pays the 2.5% itself before signing, and the official signs only when shown proof (PP 34/2016, Pasal 3). In Badung BPHTB is owed from the binding sale agreement and paid by the signing of the sale deed at the latest.
Does selling a leasehold carry the same taxes?
The BPHTB list of rights does not include a lease (UU 1/2022, Pasal 44(3)), and the 2.5% rule is written for transfers of rights to land and buildings. How a leasehold assignment is taxed was not read for this page.
What if the price in the deed is below the official value?
For BPHTB, if the transaction price is unknown or lower than the NJOP used for the land tax that year, the NJOP is the base (Pasal 46(3)).
Sources cited on this page
- PP No. 34 Tahun 2016 — final tax on transfers of land and buildings
- UU No. 1 Tahun 2022 — BPHTB, Pasal 44-49
- Perda Kab. Badung No. 7 Tahun 2023 — BPHTB, Pasal 11-17
Every figure above was read from the source it is attributed to on 20 September 2026. How we check this.