When you start living in Bali, the first thing you have to do is buy a house. However, it’s not easy. It involves a lot of money. But how much exactly? Is the price you agree with the seller the total amount you will pay? In this blog, we will explain in detail all the taxes and fees you may incur when buying a house in Bali as a foreigner, and answer those questions.

However, before we get into the details of taxes and fees, it’s a good idea to learn a little bit about the background first. So that you can fully understand when and why you have to pay each price, you can learn the proper real estate transaction procedures. Here, you can find a step-by-step guide to buying property in Bali.

Property Costs in Bali: An Overview

The process is simple. You want to buy property in Bali, so you start looking on one of the online platforms that exist. Or, you can get help from a real estate agent. Either way, you finally find a house that you love. The perfect location and size you were looking for. And a charming atmosphere that makes you feel right at home.

The real problem is the price.

The price your real estate agent told you or the price you found online was a good deal. Maybe it was a little higher than you expected, or maybe it was right up your alley. And you finally found it. It’s your new home. Now you’re excited to get started and make it your home.

But wait. Is the price you found online really what the property is worth? Aren’t you going to pay more? We’ll tell you this story from more than one personal experience.

In our experience, you can expect to pay an additional 10-15% of the agreed-upon purchase price for taxes and fees. And since we’re not talking about buying a cell phone, 10% of the property price can be a pretty steep expense. Important note: The exact amount you add will vary depending on the community the home is located in. So keep in mind that the final amount could be much higher than 15%.

The key to saving money when buying is planning ahead. Knowing that you’re going to pay more just goes to show you one thing: plan your real estate transaction early. In most cases, reservation contracts are non-refundable. This means that the money you put in before paying the final amount will be lost if you decide not to buy. The real estate agent or seller has every right to collect the money from you.

Therefore, you must fully understand the total amount you will pay for the house you have chosen. And compare the figures with your references. In such cases, it would be very useful to have a clear understanding of the list of taxes and fees that you will be responsible for as a foreigner. Locals and foreigners pay exactly the same taxes. The same taxes, fees and charges apply to both groups. You need to differentiate between taxes paid on new properties and taxes paid on resale. If you own a property in Bali, you need to consider these things.