# Taxes and Fees When Buying Property in Bali (BPHTB, PPh, VAT, PBB)

> Guide by FIRST — Bali Real Estate
> Canonical: https://firstproperty.id/en/guides/property-taxes-fees-buying-bali

When you buy property in Bali, the buyer pays BPHTB acquisition duty of up to 5% on the value above a regional allowance, and the seller pays a 2.5% final income tax (PPh). A new building bought from a VAT-registered developer also carries VAT. Add notary/PPAT fees, capped at 1% for the PPAT, and annual PBB land tax.

Those are the main lines. The detail matters, because the most common mistake in agency material is mixing up the buyer's tax and the seller's tax, and because the base for each one is not always the price you agreed. This guide walks through every item, then puts them together in an illustrative calculation.

## Key points

- **BPHTB (buyer):** up to 5% of the acquisition value minus a regional allowance, NPOPTKP (Law 1/2022, PP 35/2023).
- **PPh final (seller):** 2.5% of the gross transfer value for ordinary land and buildings (PP 34/2016), paid before the deed is signed.
- **VAT (PPN):** applies when a VAT-registered business, typically a developer, sells a new building; confirm the rate in force on your transaction.
- **PPAT fee:** capped at 1% of the deed value (PP 37/1998 as amended by PP 24/2016); other notarial and administrative costs sit outside the cap.
- **PBB-P2:** annual land and building tax, capped at 0.5% nationally and set by each regency, charged on the government-assessed value (NJOP).

## What is BPHTB and how is it calculated?

BPHTB (Bea Perolehan Hak atas Tanah dan Bangunan) is the duty on acquiring a right to land and buildings. It is paid by the buyer, and under Law 1/2022 on central-regional fiscal relations and PP 35/2023 the rate is up to 5%, set by each regency.

The base is not simply the price. It is the acquisition value (NPOP) — in practice usually the transaction value, or the NJOP if that is higher — minus NPOPTKP, a non-taxable allowance set by regional regulation. Law 1/2022 sets the national minimum NPOPTKP at IDR 80,000,000; the regency where the property sits (Badung, Gianyar, Denpasar, Tabanan…) may set a higher figure. Your notary or PPAT computes BPHTB on the actual deed value and confirms the local allowance.

BPHTB applies to acquisitions of registered rights such as Hak Milik, HGB and Hak Pakai. A lease (Hak Sewa) is a contract rather than a registered title and is taxed differently — see below.

## What tax does the seller pay?

The seller pays PPh PHTB, a final income tax on the transfer of land and buildings: 2.5% of the gross transfer value for ordinary transactions (PP 34/2016). It must be paid and validated before the PPAT signs the deed. It is the seller's tax, but because the deed cannot be signed without it, a buyer has every interest in seeing it settled.

Certain transfers carry different rates or exemptions, for example some subsidised housing. Your notary confirms the treatment for the specific sale.

## Is there VAT on a new villa in Bali?

VAT (PPN) applies when a VAT-registered business delivers a building — typically a developer selling a new villa or apartment, including off-plan. A resale between private individuals is generally not subject to VAT.

The VAT rate and the way its base is calculated were changed by Law 7/2021 and implementing rules in 2025, and the government has at times offered VAT incentives for certain new homes. Very high-value residences can also fall under luxury-goods sales tax (PPnBM). Because these rules move, ask the developer to show VAT separately on the price schedule, and ask your notary or tax adviser to confirm the rate applicable on the date of your transaction. If you are buying off-plan, read our guide to [buying off-plan in Bali](/en/guides/buying-off-plan-bali-risks-protections).

## What do notary and PPAT fees cost?

The PPAT (land deed official) fee is capped at 1% of the transaction value stated in the deed (PP 37/1998 as amended by PP 24/2016). That is a ceiling, not a fixed price, and it is negotiable. It covers the PPAT's honorarium, witnesses included — not everything. Notarial acts such as a PPJB or a lease deed, land office checks and registration charges, and due diligence are separate.

Ask the notary or PPAT for an itemised quote showing which items fall under the 1% cap and which do not. Quotes differ mainly because they bundle different things.

## How are leasehold purchases taxed?

When you lease land or a building, the landowner earns rent, and rent from land and buildings carries a final income tax of 10% of the gross amount (PP 34/2017). Depending on who the tenant is, the tenant may be required to withhold and pay it rather than the landlord. On a long lease paid upfront, the tax is calculated on the full rent paid.

BPHTB does not apply in the same way to a lease, because no registered land right is acquired. Who bears the 10% in practice is a negotiating point — make sure the lease states it clearly. Notary fees for drafting and signing the lease deed still apply.

## What is PBB and how much is it?

PBB-P2 is the annual land and building tax. Law 1/2022 caps it at 0.5% nationally, and each regency sets the actual rate by regional regulation. It is charged on NJOP, the government-assessed value, not on the market price, which is why bills often look small next to sale prices. Ask the seller for recent PBB receipts — unpaid PBB is one of the standard checks in our [due-diligence checklist](/en/guides/due-diligence-checklist-buying-bali).

## Illustrative calculation in IDR

The figures below are an illustrative calculation only, not a quote for any property. They assume a resale of a registered title between private parties (no VAT), a deed value of IDR 5,000,000,000, a BPHTB rate of 5%, and the national minimum NPOPTKP of IDR 80,000,000. Your regency's allowance, the NJOP and the actual fees may differ.

- **BPHTB (buyer):** (IDR 5,000,000,000 − IDR 80,000,000) × 5% = **IDR 246,000,000**.
- **PPh final (seller):** IDR 5,000,000,000 × 2.5% = **IDR 125,000,000**.
- **PPAT fee ceiling:** IDR 5,000,000,000 × 1% = **up to IDR 50,000,000**, negotiable, plus separately itemised notarial and administrative costs.

On this illustration, the buyer's acquisition duty is around 4.9% of the price, before notary costs. If the same property were a new build bought from a VAT-registered developer, VAT would be added to the price at the rate in force, so always ask whether a quoted price is VAT-inclusive.

## Who pays what? A quick checklist

- Buyer: BPHTB, the buyer's share of notary/PPAT costs, VAT on a new build (included in or added to the price), PBB from handover.
- Seller: PPh final on the transfer, the seller's share of notary costs, PBB up to handover.
- Lease: the landowner's 10% final tax on rent (who bears it is agreed in the lease), notary fees for the lease deed.

The split of notary costs and of any arrears is negotiable — write it into the offer.

## Where to look next

All prices on our site are in IDR, and every listing states its tenure, which tells you which of the taxes above applies. Browse [current listings](/en/listings) or explore by area — [Canggu](/en/area/canggu), [Seminyak](/en/area/seminyak), [Sanur](/en/area/sanur), [Ubud](/en/area/ubud) — and ask us to have the notary prepare a cost breakdown for a specific property before you commit.

This guide is general information, not tax advice. Rates and allowances change; your notary, PPAT or tax adviser confirms what applies to your transaction.

Last reviewed: October 2026

## FAQ

### How much is BPHTB in Bali?

Up to 5% of the acquisition value minus the non-taxable allowance (NPOPTKP) set by the regency, under Law 1/2022 and PP 35/2023. The national minimum allowance is IDR 80,000,000; your regency may set a higher figure. The notary or PPAT computes it on the deed value.

### Does the buyer or the seller pay the 2.5% tax?

The seller. The 2.5% is PPh final on the transfer of land and buildings (PP 34/2016), and it must be paid before the deed is signed. The buyer pays BPHTB.

### Is there VAT on property in Bali?

VAT applies when a VAT-registered business, usually a developer, sells a new building, including off-plan units. Resales between private individuals are generally not subject to VAT. Confirm the rate and any incentive in force on your transaction date with your notary or tax adviser.

### How much does a notary cost when buying in Bali?

The PPAT fee is capped at 1% of the deed value (PP 37/1998 as amended by PP 24/2016), and it is negotiable. Notarial acts, administrative and registration charges and due diligence are outside that cap, so ask for an itemised quote.

### Is there an annual property tax in Bali?

Yes, PBB-P2. It is capped at 0.5% nationally under Law 1/2022, each regency sets the actual rate, and it is calculated on the government-assessed value (NJOP), not the market price.