It is possible to purchase and rent out a villa in Bali as an individual. In this case, you pay a tax of 20% on the net rental income in Indonesia. However, keep in mind potential additional tax obligations in your home country.
An attractive alternative for some investors is setting up a PMA (Penanaman Modal Asing), an Indonesian corporate structure. This offers tax benefits and can result in lower tax rates, making it financially more appealing to invest in rental properties in Bali.
You can buy a villa as an individual, but with a PMA, you gain tax advantages that can reduce investment costs.
