Additional costs when buying a new property in Bali
Purchasing a new build in Bali, as anywhere else, involves a number of additional expenses that can significantly increase the overall cost of the transaction. It's important to estimate these costs in advance to avoid unpleasant surprises and plan your purchase budget as realistically as possible.
Primary and mandatory expenses:
Taxes and fees: The main tax when purchasing real estate in Indonesia is the property transfer tax (BPHTB). It is 5% of the property value, but this amount can be reduced if the buyer is a resident. Registration and administrative fees may also apply, depending on local regulations and the type of transaction.
Legal Services: It is highly recommended to engage the services of a qualified lawyer specializing in real estate transactions in Bali. Their fees may vary depending on the complexity of the transaction and the reputation of the law firm, but it is an investment that can save you many problems in the future. A lawyer will review all documents, verify the legality of the building, and help formalize the transaction in accordance with Indonesian law.
Costs associated with registration and construction:
Certification and appraisal: Depending on the developer's status and the type of property, additional certifications and appraisals may be required. For example, when purchasing land for a villa, you may need to obtain a building permit (IMB) if one has not yet been issued.
Utilities: After purchasing and completing construction, you will need to pay for electricity, water, and sewer connections. These costs can be significant, especially if the infrastructure in the area around the new development is in its infancy.
Additional work and finishing: New buildings are often sold "finished" or with basic equipment. If you plan to carry out additional work, choose more expensive finishes, or install furniture and appliances, these costs should also be factored into your budget.
Other and possible expenses:
Insurance: It is recommended to purchase property insurance to protect against potential risks such as fire, natural disasters, or vandalism. Maintenance and Utilities: Remember that after purchasing, you will have to pay regular utility bills (electricity, water, internet, garbage collection) and possibly a resident association fee if the new building is located in a complex.
Moving and Accommodation Costs: If you are not a permanent resident in Bali, you will need to factor in the cost of travel, temporary accommodation during the transaction, and possibly rent until the work is completed.
Currency Fluctuations: When purchasing property in a foreign currency, be aware of possible exchange rate fluctuations, which can affect the final price in your local currency.
Careful planning and expert consultations will help you account for all these additional costs and make your purchase of a new building in Bali as transparent and profitable as possible.
For any questions, please call us or submit a request; one of our specialists will contact you shortly.