Your Bali Property Blogspot

Property investment is recognized as one of the most popular instruments for creating long-term wealth. Investors can rent their property out to get passive income with a promising return on investment (ROI). In this article, we will explore real estate examples you can consider for investment.   Types of Property in Real Estate There are 4 types of property in real estate, as follows: - Residential Property - Commercial Property - Industrial Property - Land Property   Each of these types of property has its characteristics. It is crucial to understand all the types and examples of real estate, so you can choose what property you want to buy wisely and suit your property investment goals.   You will find out further about 4 types of property, as discussed below.   Residential Property Residential property is the most popular type of property for investors and provides you a place to reside. Investing in residential property enables you to enjoy owning a home and growing a feeling of stability. More than that, you also can generate income through residential property by renting it out.   Here are the examples of the most popular residential property:   1. Villa Villa is a building that looks similar to an upper-class or luxury landed house. It provides a garden, terrace, and external patio. Sometimes, it also provides a private pool with a beautiful panorama of a beach, river, forest, or ricefield.   A villa is usually located in a suburban area and independent of its surroundings. Besides that, the architectural style is also a factor that makes villas more “worthy” than ordinary houses. Several examples of villa architecture styles are modern, contemporary, classic, Balinese style, etc.   Villa is the most popular option for investors who want to start property investment in Bali. With the high potential of international tourists and beautiful sceneries, Bali promises a high return on investment.   If you want to have a villa in Bali, whether through leasehold or Hak Guna Bangunan title, cooperating with a trustworthy property agency in Bali is highly recommended to make your buying villa process seamless.   2. Landed House Landed house is the second option for you who want to invest in residential property. This property you can use to live with your family rent out as rumah kontrakan or rent a house for the local/domestic market.   3. Apartment Living in apartments has been increasing in Indonesia in the past few years. Apartments are often chosen by people who live in big cities that difficult to find landed houses. Apartments also offer strategic locations and are near major arterial roads.   4. SOHO (Small Office Home Office) SOHO (Small Office Home Office) is a hybrid apartment that you can utilize for living and commercial at the same time. This type of residential property is common in Jakarta.   Commercial Property The second type of property in real estate is commercial property, which entails higher initial investment, but also promises higher profit. If you want to invest in commercial property, securing a mortgage is essential. Seeking professional assistance can facilitate a smoother execution of your property investment plans.   Properties that are considered commercial property must built on commercial land (red zone).   Examples of commercial property are: - Retail store. - Industry facilities. - Offices. - Shopping centre.   Industrial Property Industrial property is one of the types of property you can consider to start a property investment. The property is typically built for manufacturing and warehousing purposes. If you want to consider industrial property, you need to understand and fulfil some legal requirements.   Examples of industrial property are warehouses, factories, logistic centres, and other production facilities.    Land Property Engaging in land investment offers different prospects for people who want to secure financially in the future. Land is also safe from damage, theft, and maintenance issues.

For you who want to generate income in Bali, property investment always offers a promising profit with a high yield of ROI. However, as an investor, you need to watch out for risks of property investment. If you understand what real estate investment risks are, you can avoid and minimize the negative impacts it might cause.   This article covers the causes of property investment risks and how to avoid all of them. Let’s find out!   8 Risks of Property Investment and How to Avoid? Here are 8 risks of property investment you must know, as follows:   1. Property Risk Property risk can be caused by two factors – natural (earthquake, flood, landslide, hurricane, etc.) or unnatural (caused by people, either unintended or maliciously).   There are some ways to minimize this kind of risk, such as: - Buy a prosperous and stable property, whether using HGB Title or Leasehold Title. - Do a due diligence before buying the property. - Buying trustworthy building insurance to help you to protect your property.   2. Market Risk This type of risk refers to unpredicted property or real estate market. There is a possibility that the property’s price may fluctuate and cause investors to struggle to understand the property’s projection.   Property market trends always go up and down by many factors. So, if you intend to invest in property, you should update on property price fluctuation.   Besides that, there’s a term called “property depreciation”. This means your property value decreases over time.   For an investor, how to avoid market risks of property investment? - Broaden the variety of properties in your portfolio. - Try to research to find a property that is below the market price. It provides a safeguard in case the market slumps caused by external factors.   3. Vacancies Property business demands are not always constant. As an investor, you are not always can to rent your property out. This naturally occurs in the property management life cycle.   Many factors influence tenants when they are searching for a property, such as: - Area growth (construction of public facilities). - Economic growth. - Political. - Government policies. - Property trends and prices (market changes). - Your service to tenants.   One of the risks of property investment is that no tenant rents out your property for a certain period.   Here are the best strategies for minimizing the risks associated with vacancies, as follows: - Buy and invest property in a growing area that provides various public facilities like schools, hospitals, parks, shopping centers, public transportation, and tourism destinations. BVR Property provides you villas and lands that you can get through leasehold or freehold. - Better to buy property that is located near the main road. - Ensure an ample financial buffer to prevent if you fail to find suitable tenants instantly. - Manage your property investment professionally and regard your tenants as stakeholders. Happy tenants are likely to extend their stay and may even promote your property to their relatives. - As market trends change, you need to be flexible when setting up your expectations.   4. Interest Rate Risk If this type of real estate investment risk increases, it will increase the monthly repayments as well. In other words, it harms your property investment.   How to minimize interest rate risk? - Practicing prudent cash flow management. - Choosing fixed-rate mortgages.   5. Unprofessional Tenants Having bad tenants is one of the risks of property investment. They can give your property investment a negative impact. Undisciplined payments, property damage, or complaints from neighbors are examples.   And an investor, here are the ways you can practice to minimize the risks of unprofessional tenants: - Have competitive but not excessively low rental rates. - Conduct regular property inspections during the tenancy. - Have a trustworthy insurance. - Choose an experienced and professional property manager to help you avoid unfavorable tenants.   6. Bad Location Location, location, and location. The first consideration for everyone who wants to buy a property or choose daily rental is location.   This is natural because the strategic location offers easier access to public services and transportation. If the property is located in a bad location, it will be harder to fulfil the market’s demands and generate income.   How to avoid choosing a bad location as one of the risks of property investment? Do research regarding the area where the property is located (facilities and access).   7. Lack of Liquidity Lack of liquidity is the risk that the property’s value is below market and forces investors to sell their properties at a rock-bottom price. Property investment is best for long-term returns. So, you must set a projection and goal in your investment for the next 10-30 years.   The solution to this problem is not easy. Here are the ways you can minimize lack of liquidity, such as: - Maintain liquidity in your property investment portfolio. - Think that property is a long-term investment. You must have solid goals in your investment. This kind of investment isn’t a good idea if you want a short-term investment.   8. Negative Cash Flow Negative cash flow is one of the most common risks in all types of businesses and investments, including property. This condition can lead you to lose money because your expenses (insurance, taxes, and mortgage payments) are higher than your income from your rental business.   Negative cash flows are caused by poor property investment analysis and research. So, the solutions to solve negative cash flow as one of the risks of property investment are: - Forecast your income and expenses. - Build a strong property portfolio. - You can consult a professional property strategist to help you manage the cash flow.

Buying property in Indonesia takes a long process and is challenging. Doing property inspection is one of the most vital processes you must do before committing the property transaction – this process is called property due diligence.   What is due diligence in property/real estate? Why does it matter? This article will explain the important aspects and what you should do when finding issues in the due diligence process. Let’s begin!   What is Property Due Diligence and Why Does It Matter? Property due diligence is a comprehensive investigation or analysis of property financial, physical, legal, and environmental conditions in the area where the property is located. This activity is conducted by the buyer before dealing with any property transaction decisions.   If you want to do a property investment, this is a vital process because it can help you to minimize and avoid unwanted risks and conflicts regarding your property in the future.   Due diligence is an in-depth and time-consuming process, regardless of the type of property you buy – villa, house, apartment, or land.   6 Important Aspects of Property Due Diligence Inspection Here are 6 important aspects of property due diligence inspection, as follows:   1. Legal Inspection The first factor you need to do in property inspection is the legal one. Verifying the legal and ownership status of the property is crucial in property due diligence.   You need to encompass the examination whether the property has liens, encumbrances, and potential title defects.   Don’t forget to review permits, leases, legal documents, and contracts to make sure your dream property is clean from legal issues.   2. Physical Inspection Besides legal inspection, physical inspection is also important for you as a buyer before making a final decision on the property transaction.   This process helps you to assess the systems, structure, and amenities provided by the property. Physical inspection can also give you an insight if there are any defects in your property or its facilities.   3. Financial Inspection Everyone who wants to start a property investment must dream of generating income as much as possible. So, understanding cash flow assessment and the property’s income potential is vital for investors.   This is the function of financial inspection.   Conducting a financial inspection provides you valuable insights into the property’s long-term return on investment (ROI) outlook.   4. Environmental Inspection Not only the property itself, but everything around the property is also important to be inspected. Moreover, in today’s eco-conscious world.   Conducting an environmental inspection provides you an information on contaminations or potential hazards that possibly exist around the environment of the property. This information is valuable for you to mitigate risks and compliance with environmental regulations.   The factors you can check regarding environmental inspection are: - Soil quality - Air quality - Water quality   5. Land Zoning Review If you want to invest in land, understanding land zoning regulations is vital for you to avoid legal issues.   Land zoning regulations give you an insight into determining the property’s intended use.   There are some intentions of land use – agricultural, residential, business, tourism, and more.   For instance, if you intend to acquire land (whether through Leasehold Title or HGB title) to construct a villa, ensure that the chosen land is legal for villa construction.   This review also allows buyers to evaluate the land’s potential opportunities or risks in the future.   6. Market Analysis Recognizing market analysis is crucial for grasping the property’s value and potential in the market. Analyzing market trends, competition, and demand empowers you as a buyer to comprehend the property’s growth prospects.   Pre-offer Due Diligence Before making any offer on the property you intend to have, you can do a pre-offer due diligence to have insights about the environmental condition around the property.   There are some factors you need to know in pre-offer property due diligence, as follows:   1. Median rents and vacancy rates. 2. Property value trends. 3. Job growth. 4. Population growth. 5. Neighborhood and school. 6. Crime rate. 7. Renter-occupied households percentage. 8. Household income levels.   Financial Due Diligence in Property Profit is the ultimate goal of property investment. If you’re a property investor, you need to find out the projected profit you’ll generate from your property. The pro forma statement that you’ve done earlier helps you to make a final decision regarding financial due diligence.   Here are the lists you need to check when conducting financial due diligence on the property, such as: - Real estate valuation, to know if the property you want to have is overpriced or at a good price. - Fees and taxes when you have the property whether through HGB Title or Leasehold Title. - Maintenance costs, including water, electricity, and internet costs. - Decoration and repairing costs. - Evidence of no debts on mortgage, utility bills, or taxes. - The prices on other similar properties in the same area where the property you want to buy is situated.   Physical Due Diligence in Property As a buyer, you must ensure that the property you want to buy is in good condition. Physical due diligence in property includes the following: - Interior and exterior condition. - Utilities. - Mechanical systems. - Structural items. - Drains, driveways, and sidewalks. - Finishing materials condition. Make sure they’re safe. - Inspection of pests and insects.   Legal Due Diligence in Property Legal is a factor that you can’t ignore at all when investing. Understanding legal factors in property due diligence helps you avoid law issues.   The lists of legal due diligence in the property include: - Title documents for knowing who owns the property. - Encumbrances – inheritance or mortgage. - All needed permissions (in case the property is still under construction). - Rules of renting out the properties: additional permissions, insurance, restrictions, and so on. - Renovations. - To find out if the property is under dispute or not.   Property Due Diligence Issues After the inspection, sometimes the buyers know that the property’s condition is below expectations. This condition is possibly happening to you as well.   You have 3 ways to respond to the property condition – refuse the deal, you can fix the issues, or ask the seller to fix the issues.   If the seller fixes the issues, an amendment should be added to the contract.   However, there are some issues that sellers impossible to handle, like noisy environments, high crime rates, or severe construction conditions. If you face these situations, you have the option to either purchase the property despite its shortcomings or decline the offer and find an alternative property.   Make Your Buying Property Process Seamless Buying property is time-consuming and challenging. To ensure the potential success of your property investment, it’s vital to assess every aspect of the property and ensure that it aligns with your expectations. One of the processes you must go through is property due diligence.   When engaging in property due diligence, it’s crucial to focus on various aspects – physical, legal, financial, and environmental aspects. Considering these aspects will contribute to securing the best property.

Indonesia offers cultures, foods, and beautiful landscapes that make everyone who lives in feel like they’re living in paradise. If you experienced living in Indonesia with KITAS and extended it multiple times, you’re allowed to have KITAP in Indonesia (Permanent Stay Permit).   This article will explain from A to Z about KITAP – the requirements, how to apply, the benefits, and many more. So, let’s dive in.   Introduction to KITAP KITAP, or Permanent Stay Permit Card in English, is a stay permit granted to certain foreigners to reside and settle in Indonesia as a resident of Indonesia. This stay permit card is valid for 5 years and can be extended as long as the permit isn’t revoked.   Unlike KITAS, KITAP in Indonesia offers more advantages for you during your stay in this archipelago country. We will discuss the advantages of KITAP later.   Although KITAP offers you many advantages, not everyone is eligible to have this permit for living in Indonesia. What makes you eligible to have KITAP in Indonesia?   According to Undang-Undang Keimigrasian BAB 5 Pasal 54, you’re eligible to have KITAP if: a. If you’re a foreigner holding the limited stay permit (KITAS) as clergy, a worker, an investor, and as a second home. b. Family relations due to mixed marriage. c. Husband, wife, and/or children of a foreigner holding the KITAP permit. d. Foreigners who are formerly an Indonesian citizen and children who previously held dual citizenship.   Please note that KITAP will not be given to foreigners who don’t own a passport.   Here is one of the additional things you must fulfill to obtain KITAP in Indonesia stated in Undang-Undang Keimigrasian BAB 5 Pasal 60, as follows: - For point 'a' above, will be granted after the applicant has resided for 3 (three) consecutive years. - Point 'b' above, will be given after the marriage has reached 2 (two) years. - Point 'c' and 'd' above, can be given immediately. - Have a sponsor.   Someone with points 'b' and 'd' will be allowed to do work and/or business to fulfill the needs of life and/or his/her family.   Securing KITAP in Indonesia can be time-consuming, typically the whole process spanning around 3 months. However, the duration can be shorter and smoother if you seek assistance from a legal service.   KITAP vs KITAS: What are the Differences? Some people might be confused to understand what are the differences between KITAP and KITAS.   KITAP offers you a permanent stay permit with fewer restrictions. This permit is ideal for you who have KITAS already and want to live in Indonesia for a long time. Whereas, KITAS offers you a temporary stay.     6 Types of KITAP in Indonesia Here are 6 types of KITAP in Indonesia, such as:   1. KITAP with 5-year period of time. 2. KITAP for an indefinite period. 3. KITAP for work on a second home with a maximum 5-year period of stay. 4. KITAP is not for working on a second home. However, for the followers or family members, (husband/wife/children/parents) with a maximum 5-year period of stay. 5. KITAP for work on a second home for an indefinite period. 6. KITAP not for working on a second home. However, for the followers or family members, (husband/wife/children/parents) for an indefinite period.   6 Steps to Apply for KITAP Here are six steps on how to obtain KITAP in Indonesia, such as:   1. Find a Sponsor The first step you need to follow is finding a sponsor for your KITAP.   3 subjects are legal to become your KITAP sponsor. Those legal subjects are: - Spouse of foreigners who want to live in Indonesia. - Every Indonesian citizen can become your sponsor or guarantor. - PT PMA or Indonesian-based companies, provided that Indonesian-based companies have a minimum paid-up capital of IDR 1 billion.   2. Gather the Required Documents If you want to acquire KITAP, there are some documents you need to prepare.   Here are 7 documents needed, as follows: - Passport with active duration for at least 18 months. - KITAS (except for spouse KITAP). - Sponsor letter. - ID card (KTP) of your sponsor. - Taxpayer identification number (NPWP) of your sponsor. - A medical examination report. - A police clearance certificate (SKCK). - Letter stating you to commit not working in Indonesia and commit to employ at least two Indonesian citizens (for retirement KITAP). - Work permit (IMTA) and the legal paperwork of the company providing sponsorship (for investor, commissioner, and director KITAP).   3. Submit Your KITAP Application You can submit your KITAP application to the Immigration Office located in your residential area.   4. Pay the Fee For a KITAP application you’ve submitted, you need to pay Rp5,000,000.00. up to Rp30,000,000.00 depending on the KITAP validity period.   5. Attend the Interview After your application has been processed, the next step is attending an interview with an immigration officer. The interview will discuss about your application.   Please note that the interview will be held in Indonesian. So, if you can’t communicate well in Indonesian, having a translator is a good idea.   6. Obtain Your KITAP The Immigration Office will review your interview and will decide within 30 days. You’ll obtain your KITAP if your application is approved.   8 Benefits of Having KITAP in Indonesia Here are 8 benefits that confirm that having KITAP in Indonesia is attractive for foreigners, such as:   1. Family Sponsorship KITAP holders can live in Indonesia and be reunited with their spouses and families.   2. Indefinite Residency in Indonesia KITAP offers a prolonged residence of 5 years with renewal possibility. It means KITAP in Indonesia eliminates the requirement for yearly extension.   3. Work Permission Having KITAP (except retirement KITAP) also allows you to simplify the employment procedures and work in Indonesia without any additional permits.    4. Property Rights and Business Ownership KITAP allows investors and entrepreneurs to buy property rights or establish a business in their own names.   5. Indonesian ID Card (KTP) KITAP holders will have a right to hold an Indonesian ID Card (KTP) that applies for 5 years. The KTP can be extended if the holders want to renew their permanent stay permit.   6. Driver License (SIM) Not only KTP, but KITAP holders also have a right to hold a driver's license (SIM) as well. The SIM is valid for 5 years.   7. Banking Facilities Someone with a permanent stay permit in Indonesia can open bank accounts, apply for credit cards, or apply for loan easier.   8. Travel Benefits KITAP holders can enjoy the flexibility of multiple-entry re-entry permits (MERPs). These MERPs allow them to travel in and out of Indonesia seamlessly.   How to Extend Your KITAP? If you want to extend your KITAP, you must submit an extension application within the earliest period of 3 months and the latest is on the day the KITAP expires. The required documents and process are similar as making a new KITAP.   The extension application for KITAP in Indonesia is currently starting from Rp5,000,000.00 and the Immigration Office will review your application within 30 days

Bali is categorized as one of the most favorite place to spend golden years. There are some reasons why people want to retire in Bali – the vibrant society, rich culture, beautiful natural landscapes, the sunshine, etc. Knowing the living cost, retirement visa in Bali, and popular places on the island will help you live in Bali and craft your retirement time into a haven life.   Pros and Cons Retiring in Bali Relocating to Bali to enjoy retirement is not a new thing. There are dozens of opinions out there that tell you why Bali is a perfect choice for retirees.    According to a survey carried out by Living International, Bali ranks fourth among the best places for retirees in Asia.   Despite Bali has been claimed as a haven for retirees, some factors will enable you to make a fair assessment of Bali.   Individual perceptions of Bali may vary, despite the island providing many exciting experiences. If you want to retire in Bali, it’s advisable to weigh the following pros and cons below.   Pros of Living in Bali The pros of living in Bali, are as follows:  - Affordable living cost. - Beautiful beaches, mountains, waterfalls, and rice fields panorama. - Friendly locals. - Great culinary destination. - Unique traditions. - A potential place to invest, including property investment.   Cons of Living in Bali However, there are some cons that you will face if you want to retire in Bali. Let’s explore the cons of living in Bali: - Lack of public transport system. - Traffic jam. - Hot temperature in dry season. - Many stray-unvaccinated dogs.   Living Cost in Bali If you are looking for a place where you can enjoy a golden time and spend your expenses affordably, Bali is a great choice.   For your information, here is a comprehensive breakdown of the living costs in Bali:   1. Accommodation (Villa or Apartment) Villa or apartment accommodation is the primary consideration for foreigners who want to live and retire in Bali. The price of leasing a villa or apartment may vary based on the type, amenities, and location.   For instance, a luxury, fully-furnished villa with a private pool, water, parking space, Wi-Fi, security, and cleaning services can cost you around IDR 200 million to IDR 400 million rupiah per year.   Besides yearly rental, you also can lease a villa for a long time (until 30 years) in Bali through a leasehold title.   If you intend to have a villa through a leasehold title, you can seek a trustworthy property agency in Bali to make your dream come true. BVR Property provides luxury and serene villas in some strategic and sought-after places across Bali.   2. Groceries Groceries like fresh fruits, vegetables, eggs, milk, meat, bakeries, and poultry are sell at an affordable price on the island. For instance, you just need to prepare IDR40 thousand for 1 kg of chicken.   You can easily find supermarkets in Bali, equipped with air conditioners.   3. Dining Bali offers culinary haven with various kinds of cuisines – Indonesian, Japanese, Italian, American, and more.   Additionally, you can savour your taste buds affordably with local foods in a local shop. However, if you more prefer for trendy cafes or beach clubs, the price would be higher.   4. Bike or Car Rental Do not afraid about transportation while you are staying in Bali. Bali provides easy access to bike rental or online transportation. The price for online transportation are varies depending on the route, but still affordable – from IDR 10 thousand to IDR 50 thousand. For Bike or car rental price is based on the type of bike or car that you choose.   Retirement Visa in Bali If you are decided to retire in Bali, there is one requirement you must meet – it’s a retirement visa. According to the Immigration General Directorate (Direktorat Jenderal Imigrasi), the prerequisites for obtaining a retirement visa in Bali are:   1.  At least aged 55 years old. 2. Photocopy of the original passport that is valid for at least 18 months. 3. Have health insurance and legal liability to third parties in the civil sector in your origin country or Indonesia. 4. Proof of your retire fund of at least USD1500. 5. Curriculum vitae 6. Evidence of residing in Indonesia through the acquisition of accommodation facilities of at least USD35 thousand, OR monthly rent payment of at least: - Jakarta, Bali, and Bandung (USD500). - Other areas in Java island, Medan, and Batam (USD300). - Other areas that are not included in the point one and two (USD200). 7. The declaration will employ at least two Indonesian citizens.   5 Popular Places to Retire in Bali Bali offers you numerous sought-after places to stay. Here, we will explain five places you might interested in staying at if you want to retire in Bali, such as:   1. Sanur Sanur is a great choice to live in if you are looking for a place that is a family-friendly and relaxing environment. This area is located in Denpasar City, the capital of Bali.   Beaches in Sanur offer you a beautiful panorama of sunrise and the jogging track. You also can find many local shop we called “warung” and street food as you wander along the seashore.   2. Ubud Ubud is another place where you will able to enjoy the serene and slow-paced life with your loved ones. This is a place where a healthy, artsy, and bohemian lifestyle comes together. Do you want to start a zen, serene, or even vegan lifestyle? Ubud is perfect for you to retire in Bali!   Notably, this place was a filming location for the movie “Eat, Pray. Love”.   3. Seminyak Seminyak stands out as a top tourist destination with many choices of clubs, beaches, restaurants, and boutique-style shops. More than that, this place is also great for those who prefer to experience the hustle-and-bustle atmosphere of Bali.   4. Canggu Canggu has experienced a significant development and trend after the COVID-19 pandemic in Indonesia. This area is situated a few kilometres north of Seminyak, offering beautiful beaches, clubs, restaurants, pubs, spas, and cafes.   There are so many nomad expats and young foreigners who live in Canggu. Finns Beach Club and Atlas are located here.   Canggu is arguably the best place if you want to retire in Bali with a forever-young lifestyle.   5. Lovina Lovina is a brilliant decision if you want to spend your golden years in the distinct region without leaving the beauty of Bali. This location isn’t like the four areas previously mentioned – located in the north of Bali, Lovina is located in Singaraja Regency, North Bali.   Here, you can enjoy the morning with the dolphin pod.   5 Tips to Have a Pleasant Retirement in Bali Here are some tips to have a pleasant retirement in Bali, as following:   1. Adaptation Adapting to the new environment and life is essential to start your retirement in Bali.   In Bali, having a holiday for weeks is different than living life for a long time. Feel the real life in Bali by trying local foods and living in society. Try these for at least three months to discern which location is best for you.   Do not be afraid to adapt. Here, expats who live in Bali can help you to cope with your new life.   2. Consider the Housing in Bali There are many choices to live in Bali – apartments, residences, and luxury villas.   Looking for the best for you is not easy and time-consuming. Moreover, you have to know property law in Bali to make your housing process seamless. Under these circumstances, it’s advisable to seek assistance from a trustworthy property agency in Bali.   3. Hire Indonesian Helpers As we explained previously, one of the prerequisites for obtaining a retirement visa is making a declaration that will employ at least two Indonesian citizens. Hire two Indonesian citizens as your private chef, gardener, or cleaner.   4. Have a Medical Insurance Make sure to have medical insurance in Bali. Your coverage can take the form of either personal insurance or travel insurance.   Also, do not forget to research what is the best insurance for you.   5. Have an Investment One recommended suggestion if you want to retire in Bali comfortably is to consider investing, especially a property investment.   Bali stands out as a favorite destination for people in the world. This is a big chance for everyone with an investment in Bali – it’s a promising high yield of ROI.   Having a leasehold title or HGB title for a villa with a Pondok Wisata license is a way to run a vacation rental business. A trustworthy property agent in Bali can assist you in this process.   Here are the links for you to learn before having a property investment in Bali: - Pondok Wisata License. - HGB Title. - Leasehold Title.   Ready to Have a Haven Golden Years? Retirement is a big moment in your life. So, make sure to make it special and comfortable. Enjoying the culture and nature of Bali is one of the options for people to spend their golden years.   There are some advantages if you want to retire in Bali – affordable living cost, unique culture, beautiful sceneries, nice and welcoming people, and a golden opportunity to generate more income through property investment. These factors  will make your retirement feel like a haven.

When you decide to invest and generate income in Indonesia, there are a lot of aspects you need to know well. The Indonesian tax system is one of them. Understanding NPWP in Indonesia (taxpayer identification number) is important for every individual and business in Indonesia.   In this article, we’ll discuss everything you need to know about NPWP – what is it, types of NPWP, required documents for obtaining NPWP, steps for obtaining NPWP, and many more.   Let’s get started!   What is NPWP in Indonesia? NPWP, commonly known as Taxpayer Identification Number, is a unique 15-digit number that individuals and businesses must have if they work, invest, and do business activity in Indonesia.   It means NPWP is mandatory for you if you’re an expat or have PT PMA. We will discuss who can register for NPWP more specifically later.   This number is issued by the Indonesian Tax Authority, Directorate General of Taxes (Direktorat Jenderal Pajak).   NPWP holds significance within the Indonesian tax system. It enables tax authorities to recognize and track your tax payment history and ensure your compliance with tax regulations.   The taxpayers (wajib pajak) are required to pay monthly income taxes, file annual taxes, and report income they earned outside Indonesia.   Types of NPWP in Indonesia As stated on Undang-undang (UU) No. 6 Tahun 1983, there are two types of NPWP in Indonesia, as follows:   1. Individual NPWP Individual NPWP is a type of NPWP that is issued for individuals who generate income in Indonesia, whether the individual is an Indonesian citizen or non-Indonesian (an expat).   There are three types of individual or personal NPWP – individuals who have income from permanent employment, individuals who have income from freelance, and individuals who have income from business.   2. Corporate NPWP Corporate NPWP is issued for businesses or companies that generate income in Indonesia, including PT PMA.   NPWP for corporations has three types, such as: - Private company (limited liability company, commanditaire company, and others). - State-owned enterprise or regionally-owned enterprise. - Firm, cooperative, association, foundation, or other organizations. - Permanent establishments.   Who Can Register for NPWP in Indonesia? According to Undang-undang (UU) No. 7 Tahun 1983, the individuals and entities listed below are required to undergo NPWP (taxpayer identification number) registration in Indonesia: - Reside in Indonesia and staying in Indonesia for more than 183 (one hundred and eighty-three) days within 12 (twelve) months period. - Corporate established or having their domicile in Indonesia (including PT PMA). - Undivided inheritances as one unity replace those who are entitled.   Requirements for Obtaining NPWP in Indonesia Whether you register for NPWP as an individual or for your company, it’s essential to know what are the required documents for obtaining NPWP in Indonesia and make sure you complete those. The requirements are:   1. Required Documents for Individual NPWP All types of individual NPWP have same required documents, such as: - Scan of ID card / KTP (for Indonesian citizens). - Scan of passport and KITAS / KITAP (for foreigners).   2. Required Documents for Corporate NPWP All types of corporate NPWP have same required documents, such as: - Individual NPWP of board members. - KTP (for Indonesian citizens). - KITAS / KITAP (for foreigners).   6 Simple Steps to Get NPWP Online You can register for NPWP in Indonesia quickly and easily online. Also, the cost of obtaining NPWP is free. You only need to gather the required documents and follow all the instructions to make your process seamless. Here is the process that involves, as outlined below:   1. Prepare the Required Documents The first step is preparing all the required documents before applying for NPWP. Remember, the required documents may be different depending on what kind of NPWP you want to obtain – individual or corporate.   2. Register on the Directorate General of Taxes’ Website Open the Directorate General of Taxes’ website (ereg.pajak.go.id) and follow all the instructions. Then, you’ll get an email from eregistration@pajak.go.id that contains a link. Click the link to continue to the 2nd registration.   After that, you’ll get another email from eregistration@pajak.go.id that contains a link that will redirect you to the application form.   3. Fill the Online Application Form Fill out the online application form completely. Here, the information is about tax category, identity, income, address, company address, additional info, etc.   4. Submit the Application and Verification After you fill out the form, apply. Then, click “Minta Token” to get a token for verification.   Now, revisit a new tab on your browser to check your email and access the latest message from eregistration@pajak.go.id. Copy the token code provided in that email.   Back to the website’s tab, click “Kirim Permohonan”. Check all boxes and paste the token code. Click “Kirim”.   5. Approval Please wait until your application status is “verified”. Then, review the email to see the confirmation email. In that email, you’ll get your NPWP number card.   6. Obtain Your NPWP Now, you’ve obtained your NPWP online. You have the option to either save it as PDF or print it.   4 Benefits of Obtaining NPWP in Indonesia Having an NPWP (taxpayer identification number) also serves several benefits for you, such as: - NPWP number serves as your unique identification within the Indonesian tax system. - As a requirement for obtaining a credit card. - Enables you to manage tax-related tasks and monitor your compliance with the Indonesian tax system. - Requirements for obtaining a Trade Business License (SIUP).   Generate Income in Indonesia Seamlessly! Understanding and obedience to the Indonesian tax system is essential to make your generating income activity in Indonesia legal and seamless.   There are two kinds of NPWP in Indonesia – individual and corporate. Required the documents and making process of NPWP isn't complicated as long as you gather the documents completely and follow the instructions carefully.

By now you probably do know that you need to follow local regulations and laws when obtaining property or land in Bali. Land Zoning in Bali is one of the regulations you must be familiar with. By understanding Bali zoning map, land use, and zoning laws it will help you decide which land you should buy that fits your investment goals.   Land zoning is a government’s regulation that classify or dividing the lands into different zones based on its purposes. This regulation is considered as one of the most critical regulations for everyone that wants to own, lease, and utilize land for development purposes in Bali.   6 Types of Land Zoning in Bali There are six types of land zoning in Bali, as following:   1. Green Zone (Agricultural Land) Green zone lands are good for agricultural purposes. All those stunning rice fields you see when driving through Bali are considered mostly to be in the green zone areas. You are not allowed to build any buildings on the green zone areas as you will not be able to obtain a valid building permit for the development. This land zone is 100% for agricultural purposes and cannot be converted into a different zone type.   There are several places that have green zone lands in Bali – Sanur, Nusa Dua, and, Ubud amongst others.   2. Yellow Zone (Residential Land) Yellow zone lands are places where you can build any types of building, including villas.   Practically, yellow zone lands can be designated for agricultural purposes as well. However, if the yellow zone lands are used for agricultural purposes, you can convert the land for residential purposes or development.   Some yellow zone areas allow more houses, some allow fewer, depending on the demand and the area. This type of zone is good for titles like leasehold title – Hak Sewa, Hak Guna Bangunan title, or Hak Pakai title.   3. Red Zone (Commercial Land) Red Zones are for commercial or business purposes like markets, tourist accommodation, shopping centre, food court, clubs, bars and many more.   The characteristics of red zone area in Bali are having a higher population density and traffic and close to public facilities.   4. Pink Zone (Tourism Land) Pink zone lands are the perfect choice if you want to build a villa and utilize it for commercial purposes. Nearly the same as Red zones, Pink zoning is used for commercial and tourism use.   This type of area lets you to build villa, hotel, and resort. Having pink zone lands is quite important if you want to run vacation rental business in Bali.   You should have a villa that is strategically located near to accommodation like bar, restaurant, coffee shop, boutique, and near to beach (if possible). That factor can attract customer to choose your rental business.   If you want to have a land through leasehold title, Hak Guna Bangunan title, or Hak Pakai title, just to make sure the land is categorized as yellow or pink zone. Alternatively, you can directly have a villa through those titles.   5. Orange Zone (Commercial & Residential Land) This area provides houses and businesses in the same area. You can build a villa on orange zone land. The advantage of this area is, these lands can cater to both locals and tourists. So can be utilised for Residential purposes as well as vacation rentals.   6. Conservation Zone Conservation zone is an area where cultural and natural sites are protected. Government doesn’t allow commercial and residential activities in this area. Benoa Bay and Taman Nasional Bali Barat are examples.   Check Land Zoning in Bali Visit Bali’s National Land Agency to check the Rencana Tata Ruang Wilayah (RTRW) for insights into the Bali zoning map. You also ensure compliance with zoning laws by seeking legal assistance from lawyers who can help you in conducting due diligence.   Land Zoning in Bali: Different Zones, Different Purposes “Land zoning” probably sounds a bit technical to some. However, it stands as a important aspects to know, especially for those considering starting a property investment in Bali.   Land zoning is divided into six types according to its purposes. Before diciding in an investment property, ensure the land aligns with your preference, whether you have it through leasehold, Hak Guna Bangunan, or Hak Pakai title. You also can directly have a finished-built villa through those titles mentioned previously.

Understanding the definition of the HGB title and how to obtain it is essential for everyone who wants to invest property in Bali, including foreigners. The reason is because, Hak Guna Bangunan (HGB) is one of the most popular property titles in Indonesia. If you’re seeking information about generating income through property in Bali, this article is right for you.   This article will explain what is Hak Guna Bangunan in Indonesia and how to obtain it. So, let’s have a look!   What is Hak Guna Bangunan? Hak Guna Bangunan, or Right to Build Title in English, is a title that allows you to take control of a building on land that is owned by another individual (the landlord). Usually, the building is a villa.   According to UU No.5 Tahun 1960 tentang Peraturan Dasar Pokok-Pokok Agraria Pasal 35 ayat 1, besides taking control of a building on the land, you also can construct and have buildings on the landlord’s land.   People who are eligible to have the property through HGB are Indonesian citizens and all types of legal entity that is located in Indonesia, including Foreign-Owned Limited Liability Companies (PT PMA).   It means, that if you’re a foreigner, you must have PT PMA first before having an HGB title. Establishing PT PMA is the most secure way for foreigners to initiate business activities in Indonesia, including those related to the property sector.   According to PP No. 18 Tahun 2021 Pasal 37 ayat 1, the maximum duration of Hak Guna Bangunan ownership is 80 years – 30 years for the initial contract and can be extended to 20 years for the first extension and to 30 years for the next extension.   HGB title duration can be extended at Badan Pertahanan Nasional (BPN) office, according to the area where the certificate is registered.   The owner of the HGB title can use the villa for commercial or residential use. Also, the HGB title owner can sell and inherit the title.   3 Simple Steps to Apply Hak Guna Bangunan PT PMA can acquire Hak Guna Bangunan in Indonesia by following these three steps:   1. Perform Land Survey Performing a land survey is a vital step you must do before you sign the land lease agreement. This step aims to ensure the land has no zoning or legal issues.   Conduct due diligence and check the land certificate.   2. Obtain Required Permits There are several permits you must have to apply for Hak Guna Bangunan in Indonesia. You can obtain permits from the local government, including environmental permits and Building Approval (Persetujuan Bangunan Gedung).   To acquire those permits, you must have a blueprint of the property you want to build. So, you need to work with an architect.   3. Apply for Hak Guna Bangunan After you perform a land survey and obtain the required documents, now you can apply for HGB title at Badan Pertahanan Nasional (BPN).   Submit your application along with the required documents and make the relevant payments.   Start Your Investment Journey in Indonesia! Hak Guna Bangunan is a powerful title in Indonesia that allows you to construct a building and have control of a building on land that is owned by another individual (landlord). However, foreigners who want to have this title must establish PT PMA first.   In Indonesia, three steps explain the process of obtaining Hak Guna Bangunan – perform the land survey, obtain required permits, and apply for the title at the BPN office. If you're done all the processes, the HGB will be yours and you can start your investment journey in Indonesia.