Ownership Options
Buying property in Indonesia is structured under two legally recognized ownership forms
Leasehold and Freehold, each governed by Indonesian law and carrying different legal and ownership implications for buyers.
Leasehold
Leasehold refers to a form of tenure under which the person acquires the right to lease the land and all buildings situated thereon for a fixed term, typically ranging from 30 to 40 years
Upon expiration of the lease term, the agreement may be extended for an additional term, subject to the conditions stipulated in the lease agreement
During the lease term, the lessee is entitled to full rights of use and enjoyment of the land and buildings, including the right to lease the villa to third parties and derive income therefrom, as well as the right to transfer the leasehold interest by way of sublease
Freehold
Freehold grants full ownership of both land and property, with an official title registered in the owner’s name. The owner has the right to use, rent, lease, sell, transfer, and bequeath the property.
Ownership is granted for 90 years, with the option to extend, provided all legal and tax obligations are met.
Freehold can only be registered to an Indonesian citizen or a locally incorporated legal entity. Foreign buyers must establish an Indonesian company (with at least two shareholders, who may be foreign nationals) to hold the property.
Visa Requirements
for Entry into Indonesia
Visa requirements for entry into Indonesia depend on the traveler’s country of origin.
Visitors are advised to check the applicable visa requirements in advance, as entry may be granted through a Visa on Arrival (VoA), an Electronic Visa on Arrival (e-VoA), or a visa obtained prior to arrival.
Short-Term Entry Visas
Visa on Arrival (VoA) — this visa can be obtained upon arrival at the airport or seaport.
Bali Easy Visa Electronic Visa on Arrival (e-VoA) — an electronic visa on arrival that can be conveniently applied for online prior to travel.
Bali Easy Visa A standard tourist Visa on Arrival (VoA / e-VoA) typically allows a stay of 30 days, with the option to extend once for an additional 30 days (for a maximum stay of up to 60 days).
Long-Term Residence Options
Citizens of any country may apply for long-term residence visas, subject to Indonesian immigration requirements. Eligibility depends on the applicable visa category and the legal structure of property ownership or shareholding in an Indonesian legal entity, in accordance with Indonesian immigration regulations.
Investor Visa (KITAS)
Where property is acquired under a freehold structure, the buyer becomes a shareholder of a company incorporated in Indonesia, which entitles the buyer to apply for an Investor KITAS. KITAS is a temporary residence permit that allows foreign nationals to legally reside in Indonesia for a period of up to two years, to enter and exit the country without numerical limitation, and to sponsor eligible family members under a Family KITAS.
Second Home Visa
Where property is acquired under a leasehold structure, the buyer may apply for a Second Home Visa, which grants the right to legally reside in Indonesia for a period of five (5) or ten (10) years. This visa is renewable, allows multiple entries, and requires either a minimum bank deposit of USD 130,000 or ownership of qualifying property. The Second Home Visa is intended for foreign nationals seeking long-term residence in Indonesia, does not confer the right to work, and allows the holder to sponsor their spouse and dependent children.
VILLA MANAGEMENT
All our villas are operated by a high-level professional property management company.
Scope of Services:
Advertising Services:
Property promotion and marketing
Booking management
Maintenance Services:
Repair and restoration work
Technical and engineering support
Operational Management:
Guest check-ins and check-outs
Cleaning and housekeeping services
Accounting and expense management
Regular monitoring of the villa’s technical and operational condition
Management Fees:
Management and advertising fee: 20%–25% of rental income, depending on the management company.
Maintenance fee: calculated based on the scope of required services.
Owner Reporting & Rental Management
The management company provides monthly financial reports and settles all rental related expenses and taxes before transferring the owner’s net income directly to their bank acount.
During rental periods, the owner must inform the management company in advance about personal use so the dates can be blocked.
If the villa is not rented out, advertising and booking services may be suspended, while management and maintenance services remain active.
TAX INFO
Property acquisition and ownership in Indonesia are subject to certain taxes, depending on whether the property is used for personal purposes or rental, and whether it qualifies as a luxury residential asset under Indonesian tax regulations.
Taxes Payable at Purchase
5%
Buyer’s Acquisition Tax (BPHTB)
A one-time tax payable by the buyer upon property acquisition.
20%
Luxury Goods Sales Tax (PPnBM)
Applies if the property is classified as a luxury residential asset.
Properties are generally considered luxury when the transaction value exceeds approximately IDR 30 billion (around USD 2 million), subject to assessment by the Indonesian tax authority.
This tax applies only to the primary sale and is non-recurring.
Taxes During Ownership and Rental
Variable
Land & Building Tax (PBB)
An annual tax based on the government-assessed value of the land and building. For a 1,000 sqm land plot with a 500–1,000 sqm villa, estimated annual PBB typically ranges between USD 300 and USD 900, depending on location and assessed value.
10%
Rental Income Tax
Applies to gross rental income applies when the property is leased to third parties.
Real facilities and guarantees behind us
Established in Bali in 2021, Golden Tree Capital is committed to setting elevated benchmarks in villa construction, through unique design and exceptional quality.
Each new project is a fusion of experience and fresh perspectives, fostering diverse partnership opportunities with top-tier professionals.
