Due to the increasing demand for property on the island, there is an abundant supply of villas for sale in Bali. As a result, it makes it a challenging market for those looking to sell. With such fierce competition, knowing how to stand out is essential to making it out of a buyer’s market. To help you, here are six easy steps to selling property in Bali.
How to sell property in Bali in 6 steps
Do you want to sell property in Bali? If you wish to sell a villa, apartment, condo, or piece of land, you can follow these steps to ensure a successful property transaction.
Step 1: Find a real estate agent to sell property in Bali
Choosing the right real estate agent is valuable when selling your property in Bali. Working with a real estate agent is not mandatory, but they can assist with selling property in Bali. A knowledgeable agent assists you in navigating the complexities of the local real estate market, provides valuable insights and advice, and ultimately helps you achieve a successful sale.
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Step 2: Determine the right selling price
Determining the right selling price is crucial when selling in Bali. A price that is too high may discourage potential buyers, while setting it too low may lead to lower profit margins and a possible loss on your investment. Thus, determining the correct price requires thoroughly evaluating current market trends, location, and property condition.
The average price for Bali villas is IDR 14 million ($882) per square meter. However, you can look at neighboring properties with similar sizes and styles to get a more accurate idea of how much you could sell your property. This way, you can at least determine the average selling price, and it won’t look like you are overselling. You can read more about villa prices in our article about how much it costs to buy a villa in Bali.
Step 3: Research the costs of selling
Selling your property in Bali means you also have to reach into your pockets sometimes. For instance, when hiring a real estate agent, it is essential to account for the charged fees, usually set between 2% and 5%. Additionally, certain documents must be notarized to comply with government regulations, which entails paying notary fees.
Apart from that, there are taxes on selling property that may apply. These are the Corporate Income Tax or Personal Income Tax and Documentary Stamp Tax. Being aware of these costs and factoring them into the selling process can help ensure that you are financially prepared and avoid any surprises that may impact your profit.
1. Corporate Income Tax (CIT)
If a company owns a property, such as a PT PMA, it must pay corporate income tax on the income and capital gains generated by the property, such as the sale of a property. The income is taxed at a fixed rate of 25%.
2. Personal Income Tax (PIT)
Foreigners who sell property in Bali might have to pay Personal Income Tax if they’re considered an Indonesian resident (when they stay in Indonesia for more than 183 days a year). The table below provides an overview of Indonesia’s Personal Income Tax rates.
| Taxable income | Tax rate |
|---|---|
| Up to IDR 60 million ($3,780) | 5% |
| IDR 60 million ($3,780) to IDR 250 million ($15,750) | 15% |
| IDR 250 million ($15,750) to IDR 500 million ($31,500) | 25% |
| IDR 500 million ($31,500) to IDR 5 billion ($315,000) | 30% |
| Over IDR 5 billion ($315,000) | 35% |
Non-tax residents pay a 20% income tax on the property sale price unless a Double Tax Agreement (DTA) exists between Indonesia and the non-resident’s home country. With a DTA, the tax rate for non-resident individuals may be reduced to 10%.
3. Documentary Stamp Tax
In Indonesia, a documentary stamp tax or meterai is applied to documents or agreements that prove the sale or transfer of property. It is a crucial part of any property transfer process and must validate the transaction in most government offices. The tax rate is IDR 10,000 ($0.63) and must be paid when legalizing the paper. Although laws regarding stamp duties for electronic documents have been established, they have not yet been implemented.
Step 4: List and promote your property
To sell property in Bali, listing and promoting your property the right way is essential. This requires marketing strategies that a real estate agent may be well-versed in. If you work with a real estate agent, you don’t have to do the marketing yourself. The agent will list your property on important real estate platforms and take care of promotion and marketing.
Listing your property on websites such as Own Property Abroad, Dotproperty, Rumah, and even Facebook marketplaces can help increase engagement and build a wider audience, making it easier for property buyers to find your place. You can create targeted ads to reach specific audiences interested in your property’s location, size, or features.
Step 5: Sign contracts at the notary to transfer the property title
Contracts are an essential document in a real estate transaction next to land title. After agreeing on the terms and conditions of the sale, sign the contracts at a notary to have a legal witness so you can notarize them. A notarized contract provides more substantial evidentiary value, making it harder for parties to withdraw from the sale.
If you intend to sell property in Bali without the help of a real estate agent, it is advisable to work with a local notary. You may ask for recommendations from your friends, family, or partners or search the internet for reviews of the notary’s services. On the other hand, if you choose to sell property in Bali with the help of an agent, the agent will usually take care of the contracts involved.
Step 6: Pay the property taxes in Bali
Pay your property taxes in Bali to ensure that the transfer is official and complies with government regulations. You can hire an accountant to ensure that all taxes are paid correctly. Ask for recommendations for a trustworthy accountant in your network, and always read online reviews about the accountants’ services before hiring.
Sell property in Bali with Own Property Abroad
Do you want to sell your villa in Bali? Own Property Abroad can assist you and ensure a seamless and hassle-free property journey. Thanks to our extensive knowledge and local experience in the Balinese market, we can help with legal requirements, finding suitable buyers, negotiating the best deals, and conducting due diligence.
With our expert team, you won’t have to navigate the complexities alone. For further information on how we can assist you, kindly drop your details below or email us at [email protected].
Contact our agent to sell your property in Bali
Frequently Asked Questions (FAQs)
Can foreigners sell property in Bali legally?
Yes, foreigners can legally sell property in Bali if they follow local real estate rules. This includes working with a local notary, signing the correct agreements, and paying the applicable property taxes.
Has property prices dropped in Bali?
During the pandemic, property prices in Bali dropped. However, demand for housing has continued to grow since tourism on the island reopened in 2023 and is expected to increase in 2024 and the following years.
How hard is it to sell property in Bali?
Selling a property in Bali can be challenging, especially with all the nuances of land ownership titles and legal requirements. However, with the help of a reliable and experienced real estate agent, the process can become much smoother and more efficient. With their expertise and support, you can achieve your goals and sell your property in Bali with ease and confidence.
How to sell a villa in Bali?
Selling a villa in Bali starts with choosing a real estate agent and determining the right price for your property. Then, research all the costs related to selling. After that, you can list and promote your property in Bali. Once you’ve found a buyer, sign the contracts at the notary to transfer the property title and settle all property taxes to finalize the property sale.
