INDONESIA. BALI

Residency / Citizenship by Real Estate Purchase

• No direct connection between real estate purchase and residency.
• Residency can be obtained by opening a business (PT PMA) or via Second Home visa — with an investment of ≈123,000–130,000 USD in real estate or a deposit.
• Residency through real estate is possible indirectly: if the property is registered under a registered company.
• Obtaining citizenship through investment is not possible — naturalization is possible after 5–10 years of residence.

Language
Official — Indonesian. English is widely used in tourist and investment zones.
Russian — limited, in real estate and service sectors.

Visa Regime
Most foreign citizens need a visa to enter Indonesia, which can often be obtained through a Visa on Arrival (VOA) or an e-Visa for short-term stays like tourism, and must have a passport valid for at least six months, with a return or onward ticket. For longer stays or different purposes, more specific visas and in-person applications at Indonesian diplomatic missions are required. 

Standard of Living (2025)
Developed infrastructure for expats: medicine, private schools, coworking spaces. Cost of living is higher than in mainland Indonesia. Security is high, but infrastructure outside top locations is unstable. Popular among digital nomads and entrepreneurs.

Economy. Currency

1. Currency — Indonesian Rupiah (IDR). The exchange rate in 2025 is stable: 15,600–16,300 IDR per 1 USD. The currency is moderately stable, controlled by the Central Bank. Currency risks — low.
2. Inflation:
• 2023 — 3.7%
• 2024 — 2.9%
• 2025 Forecast — 2.5–3.0%. Growth in construction material and rental prices — gradual.
3. GDP Growth:
• 2023 — +5.1%
• 2024 — +5.2%
• 2025 Forecast — +5–5.5%. Main drivers — industry, agro-export, tourism.
4. Bali Economy: Tourism — over 50% of GRP. In 2024 — 7.1 million tourists, over 8 million expected in 2025. Short-term rental, construction, and service markets are actively growing. Private investments support development.
5. Price growth in USD from 2021 to 2024 — 30–50% in Canggu, Seminyak, Uluwatu.
   In 2025, growth rates are slowing, but demand for villas, apartments, and land plots remains high. Projects with management, guaranteed income, and installment plans are popular.

Purchase, Ownership, Rental, and Sale of Real Estate in Bali: Taxes and Fees

Freehold:

Ownership rights: freehold is not available for foreigners

• Leasehold for 25–30 years with extension
• Hak Pakai via KITAS or legal entity
• PT PMA (foreign company) — through business structure

VAT:

• 11% — when purchasing from a developer (usually included in the price)
• 0% — in private transactions

Tax upon Purchase:
5% (Transfer Tax, paid by the buyer)

Legal and Administrative Expenses:
1,500–3,000 USD (lawyer, registration, contract)

Rental Income Tax:

• 20% — for non-residents
• 10% — for residents (KITAS / legal entity), with deductions
• Nomor Induk Berusaha (NIB) and SIUP/TOP required, as well as AKTA license and tourism licenses for AL-commerce

Tax upon Sale:
2.5% (Income Tax, paid by the seller)

Annual Property Tax:
Land and Building Tax (PBB): 50–150 USD per year

Bali. Summary
Bali is a high-yield, flexible, but legally non-standardized market where most properties are registered under the leasehold model.
The platform for the investor is simple: affordable entry, high tourist demand, rental in dollars.
However, high yield is accompanied by legal and management risks.

ROI:

• 10–15% short-term rental of villas and apartments
• 6–8% long-term rental with good location and management

Risk:

Medium-High:

• No ownership rights (leasehold), no cadastre, many small developers
• Tourism dependence, climate, rental regulation, oral practice instead of laws

Taxes

• Upon Purchase: 5% — transfer of rights tax, paid by buyer + up to 11% — VAT (if purchased from developer) + 0.5% — stamp duty
• On Ownership: 0.1-0.5% or approximately 50–150 USD per year (land tax)
• On Rental: 10% — for residents | 20% — for non-residents
• Upon Sale: 2.5% (depending on transaction scheme, paid by seller)

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