What a foreign owner of a Bali villa should know about rental licences, the 10% accommodation tax, income tax on rent, management fees, occupancy and tax on sale.
Most foreign buyers of a Bali villa plan to rent it out when they are not there. That income is regulated more strictly than it was a few years ago: a licence, a tax number, an accommodation tax charged to guests, income tax in Indonesia and a separate duty to declare the income at home. This guide sets out the rules as we found them in October 2026 from law-firm, consultancy and platform summaries; the tax authority's own pages were not all opened, so treat numbers as reported and check them with an Indonesian tax adviser. For title types see Hak Pakai, leasehold and PT PMA.
Can you rent out the villa at all?
It depends on the title. Agents state that a Hak Pakai house is for residential use only, so a tourist rental needs another structure. A lease or a company-held title can be used commercially if the activity is licensed. Short-term rental in Bali requires registration in the national business system (OSS) with an NIB and an accommodation activity code, plus a tax number (NPWP). Agent summaries say a small homestay licence (pondok wisata) is not available to foreigners, and that a PT PMA must find an activity code that is currently open to foreign investment. Bali reportedly closed new foreign registrations in lower-risk categories in May 2026 (see Bali closes new foreign investment permits). Booking platforms were reported to remove unlicensed listings in 2026 (about 1,600 in August; some sources give a 31 March 2026 deadline), so an unlicensed villa can lose its bookings. Land use also matters: agricultural (green zone) land is generally not licensed for tourist stays, see where to buy in Bali.
Accommodation tax (PBJT, formerly hotel tax)
Regencies levy a tax on accommodation, which Indonesian law now groups under PBJT (a tax on certain goods and services). The rate for hotels and similar accommodation is capped at 10% and is reported at 10% in Bali. It is charged on the guest bill and paid over by the licensed operator; it is the guest's cost, but it affects your pricing and your admin. Older materials call it PB1. Check with the regency tax office how your villa is registered and whether the platform collects it.
Income tax on the rent
- Resident individuals: a final tax of 10% on gross rent from land and buildings (Government Regulation 34/2017), with no deduction of costs. A company pays corporate tax instead.
- Non-resident individuals: Article 26 withholding of 20% on the gross rent, reported as a default rate that a tax treaty may reduce. Under the Indonesia-Poland treaty text (Article 6) income from real estate located in Indonesia may be taxed in Indonesia, including income from letting, so a treaty does not remove Indonesian tax on rent from a villa there.
- Your status depends on days spent in Indonesia and residence rules; a person who lives in the EU and visits is usually a non-resident, but confirm it.
Tax at home and double tax treaties
Rent from Bali is also income at home. Under the 1992 Indonesia-Poland treaty, Article 22 says Poland exempts income that Indonesia may tax under the treaty, while still taking it into account for the rate (exemption with progression). Polish domestic rules on foreign income have changed in recent years, so a Polish adviser must confirm how it applies today. Indonesia has treaties with many EU countries; we verified only the Polish text, so for Germany, Czechia, the Baltic states or others check the treaty list on the Indonesian tax authority site, and see tax residency when relocating. The treaty also has an information-exchange article (Article 25), so tax authorities can share data. Declare the income; we do not advise structuring to avoid it.
Management fees and costs
A management company usually handles marketing, check-in, cleaning, staff and maintenance. Agent sources quote a share of rental revenue, often around 20% to 30%, plus separate costs for staff, pool, utilities, repairs, platform commissions and insurance. These are ranges, not tariffs. Ask for the contract term, what is billed on top, how funds are paid to you, and how you can end it. A management company must itself hold the right licences.
Occupancy: be realistic
AirDNA's Bali overview shows about USD 15,600 annual revenue at 48% occupancy and a daily rate near USD 169, while Airbtics shows about USD 22,700 at 66% and USD 93. Agency market notes report softer occupancy and higher discounts in 2025-26 as the number of listings rose. An illustration only, with round figures of ours: a villa that brings USD 20,000 gross, loses 25% to management (USD 5,000) and USD 4,000 to running costs keeps about USD 11,000 before income tax. Brochures promising double-digit net returns or guaranteed income should be treated with caution. See our Bali yield guide and short-term vs long-term rental.
Taxes when you sell
Reported ranges, not official tariffs: the seller pays income tax of 2.5% of the transfer value on land and building, the buyer pays acquisition duty (BPHTB) of 5% above a regional threshold, and notary costs are extra. Under the treaty (Article 13) gains from real estate in Indonesia may be taxed in Indonesia, and you may also have to report the sale at home. Lease transfers and company share sales are taxed differently, so ask before you buy how you could exit.
For Russian-speaking owners living in the EU
Your tax home is usually the EU country where you live, so the home declaration follows its rules. Keep contracts, invoices, tax receipts and bank statements for each payment. Bring rent home through your own bank account and keep the paper trail; banks may ask about the source of funds. See Russian-speaking EU residents buying abroad.
FAQ
Do guests pay the 10% tax or do I? It is charged on the guest bill by the licensed operator; check how your villa and platform handle it.
What is the tax on rent for a non-resident? Reported as 20% withholding on gross rent unless a treaty reduces it; the Polish treaty text lets Indonesia tax rent from property there.
Do I pay tax twice? The treaty is meant to prevent that; for Poland, Article 22 describes exemption in Poland. Confirm with a Polish adviser.
Is the management fee negotiable? Usually, but check what costs are billed on top.
Can I rent out without a licence? Unlicensed listings were reported delisted and can be fined, so no.
How we help
We are a trilingual platform (English, Russian, Polish) that finds properties and coordinates independent local lawyers and tax advisers. Browse the Indonesian listings and test the numbers in our calculators. This text is general information, not legal, tax or investment advice; rates and rules change, so verify the current ones with a tax adviser.