New construction properties in Indonesia

Open floor designs, lots of windows, the use of regional materials, and ornamental details like wood and traditional carvings are commonplace in Bali houses. The architecture of the island is colorful, striking, and genuine. On the other hand, cutting-edge technologies are employed in building to guarantee sturdy, dependable, and earthquake-resistant qualities.

• Canggu; • Umalas; • Nusa Dua; • Sanur; • Seminyak; • Uluwatu; • Jimbaran; • Ubud.

Rather than renting real estate for a set amount of time, foreigners can only safely acquire property in Indonesia outright in one way: by establishing a PT PMA, a legal organization in Indonesia. Hak Guna Bangunan (HGB) is the property's ownership title. You have a solid legal foundation thanks to the titles of Right to Build and Right to Use (Hak Pakai). In Indonesia, land cannot be owned by a non-Indonesian national. On the other hand, a foreign national may get a leasehold title (Hak Sewa) to real estate and buildings for a predetermined amount of time. This title is entirely legitimate and safeguarded by Indonesian law, and it may be held in your own name.

The main difference between leasehold and freehold in Bali is the period of ownership of the property and the ownership rights. Leasehold means leasing a property for a fixed period of time, which is usually between 20 and 99 years. At the end of this term, the title reverts back to the landowner (freeholder). Leasehold is suitable for foreigners who wish to temporarily own property in Bali. Freehold, on the other hand, grants absolute and unlimited ownership of the property. Freeholders have full control over their property and can inherit or sell it without restriction. Freehold is suitable for locals and foreigners who are willing to invest in long-term property in Bali.

For a Freehold property transaction (Hak Milik) • The buyer: Land and building acquisition duty (BPHTB) = 5% of NJOP value (government assessment) • The seller: PPh income tax = 2.5% of NJOP (government assessment) For a Leasehold property transaction (Hak Sewa) • The buyer: no Tax implications • The seller: final income tax of 10% (Indonesian nationals or KITAS / KITAP holders) and 20% (foreigners without KITAS / KITAP)

Pondok Wisata is a license that allows you to rent out small properties or guesthouses in Bali. This license is required for commercial use and covers up to three or five bedrooms (depending on the age of the license). Properties with more rooms will require a full hotel license. The Pondok Wisata license has a five-year validity period that can be extended. Tax returns must be submitted using the property's local villa tax number (NPWPD). You must still complete the necessary taxation declaration even if the property is not a source of income.