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Andi Refandi
Andi serves as a Senior Account Executive on Emerhub’s global team.
If you’re looking at property in Bali, the listing prices you see online rarely tell the full story. A villa listed at USD 200,000 might cost you over USD 240,000 once you add mandatory acquisition taxes, notary fees, and transfer costs.
The actual cost also depends heavily on where you buy, whether you’re purchasing completed property or building from scratch, and how you structure ownership.
A three-bedroom villa in Mengwi costs significantly more than the same size property in North Badung. On the other hand, building your own villa can deliver better value per square meter, but requires managing an 8 to 12-month construction cycle.
In this article, we break down what you’ll actually spend on property in Bali today. We’ll look into regional price gaps, hidden transaction fees, build-versus-buy trade-offs, and why most foreign investors use a PT PMA (foreign-owned company).
Property Prices Across Main Regions in Bali
Property prices in Bali now vary sharply by location, villa size, and even commercial potential. According to REID’s 2025 market report, three-bedroom villas are the most stable and liquid category island-wide. Prices generally range between USD 250,000 and USD 600,000 across the main regions. This reflects a strong supply of mid-sized villas that are easier for you to manage, rent, and eventually resell.
Below is a quick overview of how the main regions compare in their price ranges across different villa sizes.
| Bedrooms /Locations | 1 Bed | 2 Bed | 3 Bed | 4 Bed | 5 Bed | 6 Bed |
|---|---|---|---|---|---|---|
| Central Badung | $161k | $228k | $326k | $391k | $703k | $648k |
| Denpasar | $98k | $171k | $327k | $569k | – | – |
| Gianyar | $163k | $268k | $329k | $563k | $601k | $526k |
| Mengwi | $159k | $235k | $375k | $537k | $903k | $1.246M |
| North Badung | $170k | $245k | $337k | $500k | $742k | $700k |
| South Badung | $148k | $273k | $375k | $622k | $632k | $1.8M |
| Tabadan | $145k | $235k | $297k | $384k | $701k | $1.3M |
Source: REID Report, Regional median villa prices in Bali from Q1, 2025.
Mengwi records some of the most consistent price increases across property sizes. Located immediately north of Bali’s most mature areas (Canggu and Pererenan), it captures tourism spillover while still offering space for new, compliant developments.
- As crucial infrastructure like new access roads, cafes, co-working spaces, and commercial hubs, Mengwi offers modern convenience just minutes from the busy tourist hubs.
North Badung is further back in that progression. It sits more inland, offering larger, more rural land plots that were historically overlooked. But as Central Badung becomes saturated, demand is extending into these pockets.
- The appeal lies in lower entry prices, more spacious land for your investment, and room for long-term growth. The trade-off, however, is predictability. Prices here are uneven because infrastructure and amenities are still catching up. If you’re buying in North Badung, you may be taking an early position in capital appreciation.
Note that you’ll definitely find listings that fall outside these ranges. The medians above act as a baseline for your general reference. Real-world market prices fluctuate based on the villa’s condition, land zoning, and the current pace of regional development.
If you are looking to buy property in Bali but aren’t sure which area might offer the best value, schedule a free consultation with our property experts for tailored insights.
Understanding the Total Cost of Acquiring a Villa in Bali
To understand what you’ll actually spend on an average villa, let’s look beyond the listing price. A property listed at around USD 400,000 typically represents a mid-range, three-bedroom villa in developing parts of Canggu, Uluwatu, or Ubud.
However, once you factor in the “closing costs” below, your actual purchase price becomes 10% to 20% higher. For a USD 400,000 villa, this means your real investment starts closer to USD 440,000 – USD 480,000.
| Cost Component | Estimated Cost (USD) | Applicability |
|---|---|---|
| Buyer’s Acquisition Tax (BPHTB) | 5% of Transaction Value (Above non-taxable base) | Mandatory |
| Seller’s Tax (PPh Final) | 2.5% of Transaction Value | Indirectly affects price |
| Notary and Land Transfer Fees | 0.5% – 2% of Transaction Value | Mandatory |
| PPN (VAT on the property) | 11% of Transaction Value | Only on new properties from a developer |
| PBG/SLF Building Permits | Varies based on property size and age | Mandatory (to verify legal occupancy) |
| Professional Due Diligence | Varies based on property size and age | Highly Recommended |
| Annual / Ongoing Fees | ||
| Annual Property Tax (PBB) | 0.5%, depending on the land and building value. | Mandatory (for all long-term occupants) |
| Banjar and Community Fees | $120 – $300/year | Mandatory (for all long-term occupants) |
A tip on First-Year Costs:
- If you are planning an investment, we strongly suggest budgeting for your total first-year capital requirement, rather than just the purchase price.
- When you factor in “Day 1” expenses such as insurance, initial repairs, permit regularisation, and community (Banjar) fees, your first-year running costs can reach 12% to 25% above the advertised price.
The Cost Difference Between Buying and Building a Villa in Bali
Most foreign buyers start with a choice between convenience and control. Do you buy a property off-plan, opt for a ready-to-move-in villa, or build entirely from scratch? Each path has its own cost structure and, more importantly, a different level of personal involvement from you as the investor.
Let’s take a look at these in detail.
1. Buying an Off-Plan Villa
Off-plan villas are sold before construction is finished. This is becoming the most popular route for most foreign buyers because developers release projects with launch discounts and staggered payment plans, allowing you to enter the market with less cash upfront than buying a completed villa.
REID’s 2025 report prices current off-plan villas at around USD 1,925 per m², or roughly USD 380,000–390,000 for a 200 m² home before taxes. That is usually higher than older resale villas, but lower than what a brand-new completed villa in the same location would sell for.
The trade-off is time and taxes. Most off-plan projects take 12–18 months to finish, and an additional sales tax of 11% VAT (PPN) on top of developer margins. However, many still find this manageable because they can stage payments across the construction period, generally between 12–24 months.
It’s worth noting that buying off-plan means your timeline and outcome still depend on the developer. Construction schedules and finishing details can shift once the build is underway, even on well-run projects. Emerhub experts can verify if the purchase agreement is structured to protect your interests throughout.
2. Buying Ready-to-Move-in or Resale Villas
If you want a villa you can move into right away, resale is often the fastest and more affordable route. As noted earlier, developer units come with 11% VAT (PPN). Resale villas, however, do not. REID’s 2025 data places them at around USD 1,700 per m², which puts a 200 m² home closer to USD 330,000–350,000 before taxes, noticeably less than a comparable off-plan build.
The trade-off is that you inherit the villa’s compliance history, and many resale properties still run on approvals issued years ago. If past owners added rooms, pools, or extensions, permits such as the SLF (Certificate of Occupation) may no longer match what was initially allowed. Older villas also tend to require infrastructure upgrades, from drainage systems that can handle the monsoon season to electrical capacity that can support modern use.
Emerhub experts can conduct a full audit to validate the property’s structural and legal health before you commit. We can also secure all the necessary permits and handle the acquisition process on your behalf.
If you’re interested in the full buying process, check out our step-by-step guide: How to Buy a Villa in Bali as a Foreigner.
3. Securing Land and Building a Villa from Scratch
The first step for any custom build is securing a suitable plot of land. Since foreigners cannot hold freehold titles (Hak Milik), the most secure and standard approach is a leasehold arrangement (Hak Sewa). This allows you to lease land from an Indonesian owner for a long-term period, typically 25 to 30 years, with the option to extend. It also provides you with the legal right to build and renovate your custom villa.
Building gives you total control over the materials and finishes, and because you aren’t paying for a developer’s profit margin, it often offers the best value per square metre.
| Villa Type | Estimated Cost (USD per m²) | Estimated Cost for 200 m² (USD) |
|---|---|---|
| Standard Villa (Basic materials, functional design) | $350 – $500 | $70,000 – $100,000 |
| Luxury Villa (Premium materials, high-end finishes) | $700 – $850 | $140,000 – $170,000 |
| Ultra Luxury Villa (Bespoke designs with imported materials) | $950+ | $190,000+ |
Note: These figures reflect estimated construction cost ranges and exclude land acquisition and professional costs.
Most mid-sized builds generally land within the same range as a USD 400,000 pre-built villa, but the difference ultimately lies in where your money goes. With a custom build, every dollar is tied to visible choices: the structure, materials, and finishes that you choose.
Building your own villa relies heavily on an airtight land lease agreement and zoning validation. If you’ve found a property you’d like to develop, Emerhub experts can handle the due diligence to ensure the property is legally aligned with your goals.
Our guide walks you through every stage of the process: Building a Villa in Bali: Cost, Key Considerations, and Process
Key Market Trends Affecting Property Costs in Bali
Let’s take a closer look at how Bali’s property market is taking shape today. The island is rapidly evolving from a destination for holiday homes to a serious, regulated commercial sector. These are the shifts influencing where to buy, what to expect in returns, and how to plan your investment.
1. A more commercialized market is taking shape
Bali’s property sector is rapidly maturing beyond basic lifestyle purchases. Buyers today face clearer expectations around build quality, legal documentation, and operational compliance. At the same time, demand for professional property management has grown sharply (over 30% in 2025), driven by foreign owners who want reliable, hands-off operations.
2. Smaller assets are gaining traction
Properties with two to three bedrooms now account for a larger share of new supply and completed sales. They are easier to maintain, appeal to a broader range of renters, and offer stronger resale prospects. For many investors, mid-sized villas strike the right balance between capital entry, ongoing costs, and occupancy potential, especially in busy areas where larger estates struggle to stay fully booked.
3. Rental income face more competition
As more accommodation businesses enter the market each year, location alone no longer guarantees strong occupancy. If you plan for rental income, you should expect competition and budget for stronger operational and branding efforts, not just a good build in a good area.
4. Regulatory pressure on rental operations is increasing
Authorities are increasing oversight due to a rising “shadow economy” of unlicensed villas operating without tax registration or proper permits. This has led to proposals for stricter rules, including potential bans on short-term rentals. If you intend to rent out your property, even occasionally, you should factor in zoning checks, licensing, tax registration, and compliance costs from day one.
Why Most Foreign Investors Use a PT PMA to Own and Operate Property in Bali
As a foreigner, your closest options to private property rights are the Right to Lease (Hak Sewa) and Right to Use (Hak Pakai) a property. Both allow residential use, but they don’t permit commercial activities. Once you intend to rent or operate a villa beyond private use, that limitation becomes the main constraint.
This is where a PT PMA (foreign-owned company) significantly benefits you. It provides a legally recognised structure to manage your property over the long term (up to 80 years via a Right to Build title) and addresses gaps that private ownership cannot fulfil:
- Private ownership cannot legally run rentals. A PT PMA turns your property into a lawful hospitality business. It allows you to hold a hotel-class licence directly or work with licensed Indonesian partners for villa, Pondok Wisata, and other short-term accommodation categories. When your zoning clearance, KBLI codes, and building approvals align, your villa becomes a regulated hospitality asset rather than an informal rental.
- It aligns you with Bali’s tightening rental enforcement. As mentioned earlier, local authorities are calling for enforcement over unlicensed rental villas. A PT PMA aligns your operations with the current regulatory direction, reducing risks of penalties or disruptions once enforcement takes place.
- Your villa costs become a business expense. Under a PT PMA, a wide range of costs becomes deductible, including lease payments, maintenance, staffing, utilities, and management fees. This creates significant annual tax savings that individuals cannot access, as private ownership does not allow tax deductions.
- Your project expenses satisfy minimum capital requirements. Many foreign owners assume they have to set aside additional funds to meet Indonesia’s new minimum capital requirements. In reality, project expenses, such as land lease, construction, consultants, and interior works, can account for the capital realisation requirement.
How Emerhub Supports Foreign Property Investors in Bali
We’ve dedicated over a decade to helping foreign investors structure compliant property ownership and rental operations in Bali. If you’re exploring your first development or rental project, we offer end-to-end support that includes:
- PT PMA setup for property ownership and rentals: Ensuring your company setup, capitalisation, KBLI codes, and licensing align with your goals.
- Professional property due diligence: Verifying whether a plot is legally suitable for your intended villa or rental use.
- Coordination with notaries, contractors, and local authorities: We bridge language and regulatory gaps so that all documents, permits, and agreements are handled correctly, end-to-end.
- Compliance management once operations begin: From tax registration to manpower rules and reporting. We ensure you avoid the most common administrative pitfalls foreign owners face.
To discuss your plans and goals with our team, fill out the form below. One of our local experts will get back to you within 24 hours.
Frequently Asked Questions About Property Costs and Acquisition in Bali
While foreigners cannot own freehold land (Hak Milik), they can lease it through a long-term Hak Sewa agreement with the Indonesian owner, usually for 25–30 years with extension rights. The owner keeps the title, while you gain the right to use, build on, and operate the property, as long as zoning and permits allow it.
If you hold the property through a PT PMA, the company can also obtain a Right to Build (HGB) title, which offers a much longer and more secure tenure when renewed (up to 80 years). What you cannot do is transfer the freehold title into your name or use a nominee to hide ownership. Nominee structures violate Indonesia’s Agrarian Law (UU No. 5/1960) and offer no legal protection.
Beyond the purchase price, you’ll need to budget for mandatory upfront taxes and fees, as well as ongoing expenses tied to ownership and villa operations. Upfront acquisition costs include:
- Buyer’s acquisition tax (BPHTB): 5% of the transaction value above the non-taxable threshold.
- Seller’s tax (PPh Final): 2.5% of the transaction value, usually factored into pricing but still an economic cost.
- Notary and land transfer fees: roughly 0.5%–2% for drafting and registering the transaction.
- Due diligence: legal checks on land status, zoning, access rights, and permit completeness.
- PPN (11% VAT): applicable on many new properties sold by developers.
- Permit regularisation (PBG/SLF): additional costs if the property lacks updated building or occupancy permits.
Owning or leasing property in Bali does not give you the right to live in Indonesia. Property ownership and immigration status fall under different laws, so one does not grant the other.
You’ll need to apply for a visa that fits your situation. For instance, an Investor KITAS if you set up a PT PMA, a Retirement KITAS if you meet the age and income criteria, or other stay permits, depending on your plans.
Nominee arrangements are illegal under Indonesian Agrarian Law (UU No. 5/1960) and leave you with no real ownership. The property is legally in the nominee’s name, and any side agreements giving you control are not enforceable in court.
That means you can lose the villa if the nominee sells it, faces legal trouble, or simply walks away, with little legal recourse. Authorities also actively investigate these arrangements, and penalties can include forced sales, fines, visa issues, or company closures.
Yes, but leasehold villas are valued based on how many years remain on the lease. A property with 25–30 years left will usually sell for far more than the same villa with only 5–12 years remaining.
This is why Emerhub experts advise negotiating extension rights upfront or renewing your leases early. Without that, your property’s resale value and marketability erode even if it’s well-maintained.
