Bali

Bali is an island in Indonesia that has become one of the most popular tourist destinations in the world. More than 6 million tourists visited Bali in 2022. The island's climate, culture and magical landscapes range from volcanoes and rice terraces to lush rainforests and stunning waterfalls. The location is very famous for its yoga centers and first-class beaches. Average temperature is around 28-30 degrees celsius. The official language is Indonesian, but English is acceptable almost everywhere. Indonesian state is one of the most promising countries and ranks 7th in the world in terms of GDP. By 2030, Indonesia's economy is projected to one of the 5 largest economies on the planet. Independence and neutrality are the principles of the country's foreign policy.

Locations to buy real estate

1. Changu. The picturesque village on the south coast is famous for its 10-kilometer beach and is considered a major tourist destination. A developed infrastructure with fashionable restaurants, shops and schools all within walking distance.
2. Bukit. Peninsula in southern Bali. An ideal option for families with children: the territory has developed infrastructure, but without dense urban areas.
3. Ubud. The best option for connoisseurs of spiritual practices and meditation. The location is located in the interior of the island where you can find many local retreat centers.

Investment potential

The island offers ample opportunities for purchasing residential and commercial real estate: villas with ocean views, secluded cottages, apartments in luxury hotels managed by large hotel operators. Demand for rental properties and tourist accommodation makes the market attractive to rental investors. The average occupancy rate of rental stock in tourist locations is 70-80%. The yield from renting out real estate ranges from 10 to 20% per annum, while the average yield in the world is about 5%.

Can Russians buy real estate?

Russians can freely purchase real estate in Bali as a freehold or on lease for a period of up to 100 years.

Property taxes

The tax on the purchase of real estate consists of VAT - 11% and notary fee - 1%. Worth knowing: there is a tax of 5% on income from rental property.

Residence permit or passport

Indonesia has KITAS and ITAS documents. KITAS is a residence permit for 1 year, which gives you the opportunity to legally reside and work in the country. ITAS – “second home visa” for foreign investors for 5-10 years. To obtain ITAS, you must have $135,000 in an Indonesian bank account or own real estate worth $135,000 or more.