Buying a villa or land in Bali is exciting — but if you’re not careful, the hidden costs can take you by surprise. Beyond the property price, there are several additional expenses that every buyer should anticipate.
This article gives you a clear breakdown of the most common hidden costs involved in a Bali property transaction, so you can plan your budget wisely.
1. Notary & Legal Fees
All property transactions in Indonesia must go through a licensed notary (PPAT), who handles the sale deed (AJB), title transfer, and legal documentation.
- Typical cost: 1–2.5% of the property price
- Often shared between buyer and seller, but always clarify this in advance
- May include land certificate checks and due diligence
2. IMB / SLF Permit (Building Permit)
Many villas, especially older ones or newly built properties, may not yet have a valid building permit.
- SLF (Sertifikat Laik Fungsi) replaces the old IMB
- If missing, you may need to pay to legalize the structure
- Required to get a Pondok Wisata (rental license)
Tip: Always verify permit status before buying.
3. Leasehold Extension (if applicable)
If you’re buying a leasehold property with only a few years left on the lease, you may want to negotiate an extension right away.
- Extension fees vary by location and landowner
- Often not included in the advertised price
- The longer the extension, the more secure your investment
4. Taxes & Transaction Fees
- 5% Buyer Tax (PPh Final): Often paid by the seller, but not always — check the agreement
- BPHTB (Acquisition Tax): 5% on the NJOP value (property tax value), applicable to some transactions
- Capital Gains Tax may apply if you resell
Also factor in:
- Stamp duties
- Bank transfer fees
- Possible currency conversion costs
5. Property Agent Commission
In most cases, the seller pays the agent’s fee — but not always. Some developers or owners try to shift this to the buyer.
- Commission: typically 3–5% of the property value
- Always ask for a written agreement on who pays what
6. Furnishing, Renovation & Setup Costs
- Many properties in Bali are sold unfurnished or semi-furnished
- You may need to invest in furniture, decor, appliances
- Internet, security systems, and water filters also add up
Don’t forget:
- Garden/pool maintenance setup
- Initial repairs or upgrades
- Professional cleaning before move-in or rental use
7. Annual Ownership Costs
Even after purchase, there are ongoing costs to consider:
- PBB (Land & Building Tax): small, but mandatory
- Banjar fees (local community contributions)
- Garbage collection, water, internet
- Property management (if renting)
Conclusion
The sticker price of a property in Bali is only part of the story. From legal fees to lease extensions, taxes to furnishings, hidden costs can quickly add up. But with the right team and full transparency, you can avoid surprises and invest with confidence.
At Mata Property Bali, we guide our clients through every detail — including the fine print. Let us help you make a smart and well-prepared investment on the Island of the Gods.
