Is investing in a villa in Bali profitable in 2026?

Yes, Bali is one of the most profitable markets in the world. Well-located short-stay villas in areas like Canggu, Ubud and Uluwatu typically yield 8-20% gross return and 5-15% net ROI after operating and management costs. Returns depend on several factors, including location, design, occupancy, nightly rates and cost structure. Our calculator combines Airbnb market data with zoning context to provide a projection for your specific location.

What is a realistic return on real estate in Bali?

A realistic net return on a Bali villa is 5-15% per year after accounting for the 10% PB1 (local short-stay rental tax), management fees (20-25% of revenue), maintenance and depreciation. Gross returns generally range between 8-20% in popular tourist zones. Returns can increase significantly for projects with long lease terms and potential capital appreciation. The payback period typically ranges from 7 to 14 years, depending on the ownership structure and occupancy rates. It is advisable to consider not only your annual rental yield but also your long-term exit strategy.

How does buying a villa in Bali work for foreigners?

Foreigners generally have two options: leasehold (Hak Sewa), held directly in your name, typically 25-30 years with options to extend; or a PMA (an Indonesian company with foreign ownership) which allows for freehold (Hak Milik) ownership. Leasehold is faster and more cost-effective to set up. A PMA costs approximately USD 3-5K to establish, plus annual accounting fees, but grants full ownership and the potential for bank financing. Our calculator compares both structures for your specific situation.

What is the difference between leasehold and freehold in Bali?

Freehold (Hak Milik) is full Indonesian ownership, available only to Indonesian citizens or via a PMA structure. Leasehold (Hak Sewa) is a long-term rental contract, usually 25-30 years with extension clauses, directly available to foreigners. Leasehold is faster and more capital-efficient; freehold via a PMA is more expensive but more transferable and bank-financeable. The right choice depends on your specific goals, budget and exit strategy.

How accurate is this Bali ROI calculator?

The input is based on Airbnb (region-specific occupancy + ADR), Indonesian zoning (KKPR classification) and transaction data from Bali Property Advisory. The report explicitly outlines assumptions and open questions for every deal; no figure is presented without context. The data is continuously updated as new market information becomes available.

How long does a Bali leasehold contract last?

A standard Bali leasehold runs for 25 or 30 years from the date of notarization, with one or two pre-agreed extension options of 20-25 years each. The total holding period can therefore extend to 70-80 years. When purchasing, it is important to review the remaining lease duration, as a longer lease provides better resale value and capital appreciation. At BPA, we help you evaluate lease prices, terms and future marketability.

Why BPA and why trust this calculator?

At BPA, we believe that investors in Bali need professional guidance to make a sound purchase. The market in Bali is full of opportunity, but securing a good deal requires local expertise. This is why BPA was founded: to provide reliable stewardship of your capital. That is also why this calculator was built. The calculator output combines our extensive transaction history with Airbnb market data, and the final report highlights key questions for our follow-up consultation.

THE NUMBERS · FREE

We'll show you the real numbers
before the villa.

Don't believe what your developer promised you, and let us calculate the ROI of a Bali villa in 90 seconds; gross revenue, net ROI after costs, private vs PT PMA ownership. We tailor the calculation to you, for free.

David Wunderink, independent Bali property advisor in his own work setting

David and the team at BPA provided me with excellent support during the purchase of my villa in Bali. They actively thought along with me regarding the location, the type of villa and the right partners to work with. The communication was fast, transparent and professional. I can certainly recommend BPA to anyone looking to invest in Bali.

How it Works

Step 1 of 3: Choose your location

Drop a pin on the map where you're considering buying. Choose your exact location for a reliable report.

Step 2 of 3: We crunch the numbers

Real market data + zoning + ownership scenarios. Instant ROI on-screen, full report by email.

Step 3 of 3: PDF in your inbox

Within 30 minutes you'll receive your report. Without a sales pitch.

FREE CALCULATION

What could your Bali investment ACTUALLY RETURN?

Portrait of David, Bali Property Advisory founder — Since 2018

We built this on a conversation we had too often: is this actually a good deal, what's the catch?

David WunderinkFounder, Bali Property Advisory

David and the team at BPA provided me with good guidance during my villa acquisition in Bali. With their deep market knowledge and ability to identify high-potential projects I was able to make an informed decision. The team was pro-active and quick to respond to any questions I had throughout the entire journey. I highly recommend BPA to anyone looking for a reliable and professional partner for property investment in Bali.

What we send you

01 / 04

Verified rental yield

Gross + net based on regional occupancy and seasonal patterns.

02 / 04

Net ROI after costs

Management, maintenance, taxes, all factored in.

03 / 04

Leasehold, freehold, PMA, in 60 seconds

What each structure means for your rights, costs, flexibility.

04 / 04

Questions for our conversation

Specific open questions tailored to your situation.

Questions we get every week

Last updated: August 2026

We'll show you the real numbers before the villa.