FAQ

The percentage that a management company in Bali takes can depend on various factors: the type of property, the services provided by the management company, etc. Typically, the management company charges a commission ranging from 15% to 30% of the rental revenue, but exact figures may vary depending on specific contract terms and market conditions.

A foreign buyer of real estate in Bali will have two standard expenses: payment of VAT at a rate of 11% of the total value, as well as payment of 1% to the notary for registration and transaction processing.
If the owner rents out the property, they must pay a 10% tax on rental income.
If you purchase the property from ADVA, we will take care of the 11% VAT.
According to Indonesian tax law, foreign owners, as non-residents, are required to pay a 20% tax on rental income from the property. To rent out a property in Bali, a private foreign individual must transfer management to a company that acts as a tax agent. There may be ways to optimize taxes through offshore models, but this is considered on a case-by-case basis.

You will profit from entering the growing real estate market in Bali while prices are still relatively low and various offers are available.
If your goal is to buy and resell, you can take advantage of promising projects under construction. An investment with low initial costs can yield returns of 20% to 40% within 6–12 months.
If your goal is to rent out to generate income, the options are favorable both at the construction stage and for ready-made projects.
Rental yields average 12% to 16% per annum.

When drafting a contract, the question of renewal often arises — what happens at the end of the contract. Usually this clause is at the discretion of the parties, but it is quite common for contracts to include the phrase “priority renewal of the contract at market price.”
If the agreement is properly drafted and includes your priority right to renew, the landowner will have no other option but to extend the lease to you.

Long-term leases are the most popular form of property transfer for foreigners in Indonesia. The market typically offers lease terms of 25–30 years with an option to renew.