Buying
What It Costs to Own a Villa in Bali Each Year: Tax, Upkeep, Insurance and the Lease
Owning a Bali villa costs more each year than the land tax: the lease running down, upkeep, insurance, utilities, staff and, for a rental, management and a company.
Updated 18 October 2026 · 8 min read
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The yearly costs at a glance
Not every line applies to every owner. A villa you live in has no management fee and no tax on rent; a villa you let nightly has all of them. The ranges are the ones the linked guides publish, most of them reported by the industry rather than set by any rule, so read them as a starting point for a quote.
| Cost | What it is | Typical figure | Applies to |
|---|---|---|---|
| Lease running down | The years of the lease used up | Price ÷ years left; IDR 142m a year on a IDR 3.54bn, 25-year lease | Every leasehold |
| PBB | Annual land and building tax | At most 0.5% of NJOP; local rate varies, and Badung’s changed in 2025 | Whoever the deed or title makes liable |
| Maintenance reserve | Roof, pool, paint, pumps, damp | ~3–5% of property value a year, as cited for let villas | Every owner |
| Insurance | Building and contents | ~0.1–0.35% of insured value, + 0.05–0.2% for catastrophe riders | Every owner who insures; often required by the deed or a manager |
| Electricity | PLN, by capacity and use | IDR 1,352–1,699.53 per kWh, non-subsidised 2026 rates | Owner, unless a tenant pays |
| Staff | Housekeeping, garden, pool, security | Bali’s 2026 UMP is IDR 3,207,459 a month, a benchmark rather than a legal floor for domestic staff | Owners who employ staff |
| Management | Running a rental day to day | 15–25% of gross rental revenue, 20% most quoted | Let villas |
| Tax on rent | Income tax on rental income | 10% final on gross rent with an NPWP, 20% without; 22% on a PT PMA’s net profit | Let villas |
| Company costs | A PT PMA’s accountant, LKPM reports and tax filings | Quoted by the provider; payable whether or not the villa earns | Villas held through a PT PMA |
The lease is a cost, even though nobody invoices it
A leasehold is time in a house, and the time is spent whether you use the villa or not. Divide the price by the years left and you have the yearly cost of holding it: on the rent-or-buy guide’s median 2-bedroom, IDR 3.54 billion over 25 years, that is about IDR 142 million a year.
The money is also tied up. Every 1% it could earn elsewhere is about IDR 35 million a year on the same villa. Neither line appears in a seller’s or a manager’s cost sheet, and both belong in yours. A freehold or HGB title does not run down in the same way, but it has its own price: for a foreigner, HGB means a PT PMA and its running costs.
PBB: small, local, and worth checking who pays
PBB is charged on the land and building at a rate capped nationally at 0.5% of NJOP, the assessed taxable value, which the regency sets and which is usually below market value. The effective rate is local. Badung regency, which covers Canggu, Seminyak, Uluwatu and Kuta, pushed through a disputed NJOP revaluation in 2025 that raised some bills sharply before part of it was reversed, so take the current figure for the plot from the regency’s revenue office (Bapenda), not from a percentage quoted online.
On a leasehold the landowner holds the title, so the deed decides whether you or the owner pays the PBB. Read that clause, and ask for the last few years’ bills (SPPT) and receipts before you buy: unpaid PBB attaches to the land, not to the person who failed to pay it.
Upkeep, insurance and utilities
Villa managers commonly cite a maintenance reserve of 3–5% of property value a year for a villa that is let. It is a reserve, not a forecast: some years nothing breaks, then the roof, the pool pump and the hot-water system go in the same wet season. Bali’s humidity, salt air near the coast and the wet season are why the figure is higher than owners from drier countries expect.
Insurance is not required by Indonesian law, but a lease deed, a bank or a management contract often makes it a condition. Brokers report base premiums of roughly 0.1–0.35% of the insured value a year, with earthquake, volcanic eruption, tsunami and flood as riders that add 0.05–0.2%; on a villa insured at IDR 5 billion the base premium alone runs roughly IDR 5–17.5 million. Work that does not match the approved PBG drawings can void cover on that part of the house.
Electricity is billed by PLN at non-subsidised 2026 rates of about IDR 1,352 per kWh at 900 VA up to IDR 1,699.53 at 3,500 VA and above. Air conditioning and the pool pump decide the bill, and the connection’s capacity decides whether both can run at once. Water may be a private well, which legally needs a SIPA permit, or a PDAM mains connection.
When the villa earns rent
Letting adds a second layer of costs that come out of revenue before anything reaches you. Full-service management is reported at 15–25% of gross revenue; booking platforms take roughly 3% on a direct Airbnb booking up to 15–18% through a manager’s channels; cleaning and linen are paid per stay. The yield guide works through one example in which an advertised 10% gross yield becomes a net yield of about 2–2.5% once these, a maintenance reserve and realistic occupancy are applied.
Tax follows the structure. A long-term lease to a tenant is taxed at 10% of the gross rent, final, with an NPWP, or 20% without one. Nightly letting is an accommodation business: a foreign owner needs a PT PMA holding the licences, the company pays 22% corporate tax on its net profit, and the regency collects PBJT, the hotel tax, capped at 10%. A PT PMA files its quarterly investment report (LKPM) and its tax returns whether or not the villa earned anything, so its accountant and filings are a fixed cost, not a share of revenue.
What to ask the seller for before you budget
A seller who has owned the villa for a year or more holds the real numbers. Ask for them in writing; they replace every range on this page.
- Twelve months of PLN bills or token purchases, and the connection’s capacity in VA.
- The last three years’ PBB bills (SPPT) and receipts, and the lease clause on who pays PBB.
- The current insurance schedule: insured value, excess and which riders are included.
- Staff names, roles, monthly pay and what was paid as the religious holiday allowance (THR).
- For a let villa, twelve months of revenue, occupancy and every cost line from the manager, not a projection.
- Recent repair invoices: roof, pool equipment, pumps, air conditioning.
Common questions
How much does it cost to own a villa in Bali per year?
It depends on the villa and on whether it is let, but the largest cost on a leasehold is the lease running down: about IDR 142 million a year on a IDR 3.54 billion villa with 25 years left. On top come PBB, a maintenance reserve commonly cited at 3–5% of value a year for a let villa, insurance at roughly 0.1–0.35% of insured value, utilities and staff.
How much is property tax on a Bali villa?
PBB is capped at 0.5% of the assessed taxable value (NJOP), and the effective rate is set by the regency; Badung’s changed in 2025. Get the current figure for the plot from the regency’s Bapenda, and on a leasehold check the deed for who pays it.
Who pays PBB on a leasehold villa in Bali?
Whoever the lease deed says. The landowner holds the title, so the tax is assessed on their land; many deeds pass the cost to the leaseholder, some do not. Read the clause and ask for recent bills and receipts before you buy.
How much should I budget for villa maintenance in Bali?
Villa managers commonly cite a reserve of 3–5% of property value a year for a villa that is let. Treat it as a reserve against big repairs, not a yearly spend, and replace it with the villa’s own repair history where the seller has one.
Does a PT PMA cost money even if the villa earns nothing?
Yes. A PT PMA files a quarterly investment report (LKPM) through OSS and monthly and annual tax returns whether or not it has income, so its accountant and filings are a fixed yearly cost.
Looking for a home in Bali?
Tell the Baliestate assistant your budget and dates. It replies in minutes with homes that fit and books the viewings.
The IDR 3.54 billion price and 25-year lease are medians over completed 2-bedroom leasehold villas listed by Baliestate’s partner agencies on 6 October 2026, as published in the rent-or-buy guide. Maintenance, management, platform and insurance ranges are industry-reported, as the linked guides state; tax rates and the UMP are as those guides cite them. General information, not tax or financial advice.
Sources and further reading
Related guides
- Rent or Buy in Bali? About Seven Years of Rent Buys a 25-Year Lease
- Property taxes and fees when buying in Bali: BPHTB, PBB, NPWP
- Villa rental yield in Bali: the arithmetic people skip
- Villa Management Companies in Bali: Cost and What You Get
- Bali Villa Insurance: Coverage, Cost and What’s Excluded
- Electricity in Bali: PLN Capacity, Bills and Villa Power
- Household staff in Bali: what is normal and what it costs
- PT PMA: when you need one, and when you do not