Is buying a villa in Bali profitable in 2026?

Yes, well-located short-term-rental villas in Canggu, Ubud and Uluwatu typically deliver 8-12% gross yield and 5-7% net ROI after operating costs and management fees. Profitability depends on three factors: zoning compliance (KKPR-zone), ownership structure (leasehold vs PMA), and regional occupancy. The calculator combines real AirRoi market data with zoning context to produce your specific projection.

What is a realistic ROI on a Bali villa investment?

Realistic net ROI on a Bali villa runs 5-7% annually after the 10% PB1 (local short-stay rental levy), management (20-25% of revenue), maintenance, and depreciation. Gross yield (revenue / purchase price) typically lands 8-12% in tourism zones. Break-even on the purchase price ranges from 9 to 14 years depending on ownership structure and occupancy. Numbers under 4% net usually flag a zoning, location, or pricing problem.

What is the difference between leasehold and freehold in Bali?

Freehold (Hak Milik) is full Indonesian ownership, only available to Indonesian citizens or via a PMA company structure. Leasehold (Hak Sewa) is a long-term lease, typically 25-30 years with extension clauses, available directly to foreigners. Leasehold is faster and cheaper to set up; freehold via PMA is more capital-intensive but transferable and bankable. Which fits depends on holding period and exit strategy.

Should I choose leasehold or PMA structure for a Bali villa?

Use leasehold for holding periods under 15 years and budgets under USD 350K: minimal setup cost, no annual company filings. Use PMA (foreign-owned LLC) for longer holds, multiple properties, or when you want bank financing and a clean exit-via-share-sale. PMA carries USD ~3-5K setup plus annual compliance costs but unlocks freehold ownership. The calculator compares both side-by-side in your report.

How accurate is this Bali villa ROI calculator?

Inputs come from AirRoi (per-region occupancy + ADR), Indonesian zoning APIs (KKPR-zone classification), and Bali Property Advisory transaction data covering 200+ deals across leasehold, freehold and PMA structures since 2010. The report flags assumptions and open questions per deal. No single number is presented as final without caveats. Updated continuously as market data refreshes.

What costs reduce net ROI on a Bali villa rental?

Six recurring deductions: PB1 local short-stay rental levy (10%), villa management (20-25% of revenue), maintenance reserve (1-2% of property value annually), insurance, utilities, and pool/garden service. One-off: BPHTB transfer tax (5%), notary, and IMB/PBG building-permit verification. Together these convert a 10% gross yield into roughly 5-6% net. The calculator subtracts each line item explicitly.

How long is a typical Bali leasehold contract?

Standard Bali leasehold runs 25 or 30 years from notarial signing, with one or two pre-agreed extension options of 20-25 years each. Total tenure can therefore reach 70-80 years. Price per square meter scales with remaining duration: a 5-year-old contract trades at a discount versus a freshly-signed one. The calculator amortizes the leasehold premium across the holding period.

Why BPA, and why trust this calculator?

At BPA we believe investors in Bali need guidance to make a sound purchase. The market here holds real opportunity, but a good deal takes local expertise. That is why BPA exists: for proper stewardship of your capital. And that is why this calculator was built. Its output combines our transaction history (200+ deals since 2010 across leasehold, freehold and PMA) with AirRoi market data; the report flags open questions for a follow-up call.

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Last updated: June 22, 2026

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