Individual

NOW THAT YOU’VE BOUGHT YOUR BEAUTIFUL PROPERTY IN BALI, THERE ARE A FEW MINOR DETAILS TO LOOK OUT FOR …

If you bought for personal use only, then you’re one of the very lucky few who can afford to leave the unit vacant throughout the year and only use during holidays.

For the majority of property buyers – especially in holiday destinations – they have a dual objective when making that decision; for when the property is not being used by the owner or their friends, they would like to earn some returns instead of keeping it idle.

All that sounds straight forward and simple; while in fact its anything but…

First and foremost, the ownership structure of the investment property dictates your annual tax implication from renting. So leasing/owning the property in your own name can lead up to 20% tax on annual income, while setting up a local company and being a shareholder – if properly done – can reduce that to as low as 0.5%*.

So you will need assistance in setting up a legal entity with the local government; including but not to limited to issuing a deed of establishment, registering with the tax authorities, lease agreement for company, getting ministry approvals…etc

Once all that is done, you will need to open a corporate bank account where all incoming rent payments and all outgoing operational expenses for the property must be handled.

Of course, you will need to maintain accounting records for all transactions and report and pay taxes on monthly basis; so an accounting team is also required.

If you’re going for short term rentals – AirBnb, booking.com and others – then you’re adding another layer of complexity which is streamlining of accounting records between your property management firm (who is providing you on a monthly basis with a profit & loss account on your property) and your accountants.

Needless to say, the process includes multiple moving parts and coordination between them is imperative.

BiBali investments saves you all that trouble of finding and sourcing reliable providers in Bali. Our network of tried and trusted accountants, legal and tax experts, as well as an established relationship with a leading bank in Indonesia, will provide you with the peace of mind to accompany your investment.

If your schedule and travel are constrained, all of the above services can be executed remotely through a power of attorney, and you’ll be guided each step of the way by one of our trusted advisors.