Property investment in Bali #2

Owning a building in Bali is a good way to diversify your assets, or to spend happy days near beautiful beaches in retirement.

Bali: a destination of choice

It’s not for nothing that the island of Bali is favored by tourists from all over the world. It oﬀre long, beautiful beaches, stretching downhill from forest-covered mountains and terraced rice fields. While the landscapes are particularly beautiful, the Balinese people are known for their extreme kindness and legendary attachment to their cultural values. Blessed with a pleasant year-round climate, the island of the gods attracts millions of tourists every year, as well as investors who expect a return on their investment in around ten years, thanks in particular to the steady growth in tourist numbers over the past few years.

How to invest in real estate in Indonesia

In Bali, as throughout Indonesia, only an Indonesian citizen can own a plot of land. Fortunately, however, there is a way for a foreigner to enjoy the use of land: the long-term leasehold contract.

Leasehold is a long-term rental contract signed between the owner and the tenant, which can be renewed or extended. Leaseholds are signed before a notary and are open to all foreigners. This contract is transferable and assignable. However, at the ﬁnish of the contract, any construction on the land reverts to the owner. This situation can be avoided, however, by making special provisions in the original contract.

Taxation in Indonesia

Visit non-resident individuals are subject to a flat 20% withholding tax. However, private individuals from countries with which Indonesia has a tax treaty may be subject to different rates. For French citizens, the rate is 10% under the terms of the ﬁscale Convention signed between France and Indonesia on September 14, 1979.