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Owning a villa or property in Bali is certainly exciting. However, there are times when reselling your villa might bring more profit to your situation.
Some of our clients have faced this, choosing to sell their villas as part of their exit strategy.
But, can a foreigner resell property in Bali? And how can you do it legally while still ensuring a profit?
This guide will clear the fog and walk you through everything you need to know before putting your villa on the market.
Key Takeaways
- Before reselling your property, understand your ownership title (Leasehold, Hak Pakai, HGB, or Freehold via nominee), as it determines how you can legally resell your property.
- Plan your resale process carefully by getting a professional valuation, hiring a reliable Bali real estate agent, and preparing high-quality marketing materials.
- Keep all documents and taxes in order (title certificate, permits, tax receipts) to avoid delays and ensure a smooth transaction.
- Work with trusted professionals (agents, notaries, legal advisors) to maximize profit and complete the resale legally and hassle-free.
Free Download: Bali Property Investment Guide 2025
Understanding Bali Property Ownership Titles for Resale
When you decide to sell your property in Bali, the very first thing to consider is the type of ownership title you hold.
This is crucial because the selling process, associated costs, and even the pool of potential buyers differ significantly for each title.
As a foreigner, you likely hold one of the following.
1. Freehold (‘Hak Milik’)
This is the strongest form of land ownership in Indonesia, but it’s exclusively reserved for Indonesian citizens.
If you’re a foreigner who used a local nominee to purchase a Freehold property (which is, honestly, a risky and not recommended practice) selling it involves transferring the title to another Indonesian citizen.
The sale must be processed through a specially licensed notary known as a PPAT (Pejabat Pembuat Akta Tanah).
2. Leasehold (‘Hak Sewa’)
This is the most common and straightforward way for foreigners to control property in Bali.
With a Leasehold title, you own the rights to the property for a set period, typically 25 to 30 years, often with options to extend.
When you resell a leasehold, you are essentially transferring the remaining years on your lease to the new buyer.
3. Right of Use (‘Hak Pakai’)
This title allows a foreigner who holds a valid residence permit (KITAS or KITAP) to own a property. It’s a registered title with the land office, offering strong legal protection.
When you sell a Hak Pakai property, the title can be transferred to another foreigner who also meets the residency requirements, or it can be converted to a Freehold title if sold to an Indonesian citizen.
4. Right to Build (‘Hak Guna Bangunan’ or HGB)
This title is typically held by a foreign-owned company, known as a PT PMA.
It grants the company the right to build and own buildings on a piece of land for a specific period, which can be extended.
If you’re selling a property under an HGB title, you are usually selling the property along with the PT PMA that holds the title.
Read More: Should You Sell Your Investment Property Now or Wait?
Step-by-Step Reselling a Villa in Bali
With a clear understanding of your ownership title, you can move forward with the sale. While the Bali market is hot, a well-planned strategy is key to maximizing your profit.
1. Get Your Property Valued by an Expert
Before marketing your property under any “Bali property for sale” ads, you need to know its true value.
The Bali market moves fast, and what you paid a few years ago might be vastly different from its current value.
Hiring a professional appraiser will give you a realistic selling price based on location, property condition, market trends, and comparable sales in your area.
2. Choose a Reliable Bali Real Estate Agent
A good Bali property agent is your most valuable asset in this process. Look for an agency with a strong track record, a physical office, and positive testimonials.
A trustworthy agent will not only market your property effectively but also help you navigate the legal paperwork and negotiations.
An exclusive listing with one agent can often lead to a more dedicated marketing effort.
3. Set a Realistic Timeline for Selling
Be prepared for the sale to take some time. While demand is high, a realistic timeline to aim for is within 12 months.
If your property sits on the market for longer, it might be a sign that it’s overpriced or not marketed effectively. Patience is key to getting the price you want.
Read More: How Much Should You Charge for Rent in Bali?
4. Prepare Your Marketing Materials
First impressions matter, especially in a competitive market.
So, invest in professional photography and perhaps even a video tour. High-quality visuals can make your property stand out online and attract serious buyers.
These marketing materials can cost between USD 50 to USD 100 per high-resolution image, but the return on investment is well worth it.
5. Prepare Your Property for Sale
Make sure your villa or land is looking its absolute best. This means decluttering, making any necessary repairs, and ensuring the garden and pool are pristine.
A well-maintained property is much easier to sell and can command a higher price. Think of it as setting the stage for the buyer to imagine their new life in Bali.
6. Have Your Paperwork Ready
Nothing slows down a sale like missing documents. Before you list, gather all your essential paperwork, including:
- The original property title certificate (Hak Sewa, Hak Pakai, etc.)
- Building permit (IMB/PBG)
- Proof of land and building tax payments (PBB)
- Your passport and NPWP (Indonesian Tax ID number)
7. Close the Deal and Count the Money
Once you have a buyer, the final steps involve a notary. A standard deposit for most deals is 10% of the sale price.
The notary will verify all documents, prepare the sale and purchase agreement (AJB), and witness the final transaction.
After all taxes and fees are paid, the deal is closed, and the funds are transferred to you.
Taxes and Fees when Reselling Bali Property
Selling a property in Bali isn’t all profit. You need to be aware of the tax and fees.
What is the tax you need to pay when you sell a property in Bali? Here’s the answer:
| Tax Type | Who Pays | When Applied | Rate / Calculation | Notes |
| Land & Building Tax (PBB) | Property owner | Annually | Based on NJOP (assessed market value). Example: Land area × NJOP + Building area × NJOP = Total NJOP. % tax applied on NJOP. | NJOP updated every 3 years (can adjust yearly). Pay before the deadline set by the local gov. |
| Acquisition Duty (BPHTB) | Buyer | On property transfer (purchase, inheritance, grant) | Up to 5% of transaction value or NPOP (whichever higher). | Must be paid before title transfer at BPN. Exemption if: first-time transfer, landed house ≤ IDR 2B, buyer is individual. |
| Final Income Tax (PPh Final) | Seller | On property sale | Freehold: 2.5% of selling price. Leasehold: 10% (with NPWP) or 20% (without NPWP). | Must be paid before AJB signed & registered at BPN. Proof required. |
| Value-Added Tax (VAT/PPN) | Buyer | On purchase from developers or companies | 12% (effective 1 Jan 2025, up from 11%). | Applies to new properties sold by corporate entities/developers. |
| Rental Income Tax (PPh 4(2)) | Owner (landlord) | When renting out property | Local: 10% of gross rent. Foreign: 20% withholding tax (may be reduced by DTAA). | Paid monthly/quarterly, must be declared annually. |
Read More: Protecting Your Bali Investment from Sudden Rule Changes: 3 Proven Ways
FAQ
1. Can I sell my leasehold property in Bali?
Yes, you can. A leasehold property can be sold in two ways: either by subleasing it to the buyer or by ending your existing lease and creating a new lease agreement directly between the freehold owner and the new leasehold buyer.
2. Can foreigners buy and sell property in Bali?
Yes, foreigners are allowed to buy and sell certain types of property in Bali. The titles available to foreigners include leasehold and right-to-use (Hak Pakai). Freehold ownership, however, is strictly limited to Indonesian citizens.
3. How long can you own a property in Bali?
Foreigners can lease property for an initial term of up to 25 years, with options for extension. If ownership is through a foreign-owned company (PT PMA), building rights (Hak Guna Bangunan) can be obtained for 30 years, with the possibility of renewal afterward.
Conclusion: A Smooth Sale is a Smart Sale
So, can you resell property in Bali? Absolutely.
The key to a successful resale lies not just in finding a buyer, but in navigating the process with knowledge and preparation.
By understanding your ownership title, setting a realistic price, and working with trusted professionals, you can ensure a smooth and profitable transaction.
Ready to explore your property resale options in Bali? Or still have some questions? Our team is here to guide you and provide the answers you need.
