Bali not only attracts tourists from around the world but also offers significant opportunities for foreign investors. Investing in real estate or other sectors on the island can be very tax-efficient. Indonesia has various tax advantages that help foreign investors maximize their returns and reduce costs. By investing wisely, you can benefit from favorable tax schemes that enhance the investment climate in Bali.
A popular way to invest in Bali is through a holding structure. This allows you to borrow money at a low interest rate or even without interest. The profits generated from your investment can then be used to repay the loan. This reduces financial pressure in the short term and makes it easier to grow capital in real estate.
Indonesia encourages entrepreneurs with a favorable tax rate. In the first three years, you only pay 0.5% tax on turnover. This is a significant advantage compared to the standard 12% corporate income tax, and it helps new businesses grow faster by lowering tax pressure in the early stages.
Indonesia has one of the lowest inheritance tax rates in the world. While inheritance tax in Belgium can range from 20% to 50%, inheritance tax in Indonesia is only 5%. This makes it particularly attractive for investors looking to pass on their wealth to the next generation without losing a significant portion to tax.
Investing in Bali offers more than just the chance to participate in a thriving real estate market; the tax benefits can make your investment even more profitable. From the ability to invest through a holding structure to the low inheritance tax, there are plenty of reasons to consider Bali as a smart investment destination. By taking advantage of these tax benefits, you can optimize your returns and enjoy a favorable tax environment.
