BALI BUYING FAQ
Q: Can I get a loan to buy a villa in Bali with Nobilio?
A: Generally, it is difficult for foreigners to obtain property loans in Bali. Most purchases are made in cash. Some buyers secure loans from their home countries.
Q: What is the buying process with Nobilio?
A: The process is tailored to each client, including property search, negotiation, signing a reservation contract with a deposit of minimum 10,000 €, then signing the notarial deed, which can be done remotely with a power of attorney.
Q: Do I need to be physically present in Bali to manage my project with Nobilio?
A: No, the entire project can be managed remotely via tracking tools and personalized support, although visiting Bali and meeting the team is recommended.
Q: Can I make a single visit and handle the rest remotely?
A: Yes, you can visit once to select your property and finalize the rest from a distance.
Q: What are the steps and documents to reserve land?
A: Signing the reservation contract and paying a 10,000 € minimum deposit initiate the process. This is followed by notarized deed validation.
Q: Is it possible to generate legal rental income with Nobilio?
A: Yes, Nobilio assists with forming a company in Indonesia to declare rental income legally.
Q: What types of visas can I obtain through investing with Nobilio?
A: For example, a KITAS valid for two years can be obtained through your company.
Q: Can I open a bank account in Indonesia?
A: Yes, with a residence permit, you can open a personal account. Nobilio helps open a professional account for the local company.
Q: Is having an Indonesian bank account mandatory?
A: Only the company must hold a professional account locally; personal accounts are not strictly required.
Q: What guarantees do villas built by Nobilio have?
A: One-year warranty for major construction defects and five years on the structure. Insurance for natural risks is advised.
Q: What ongoing costs should I expect after purchase?
A: Operational costs such as maintenance and management are handled by BaliSuperHost and deducted from rental income.
Q: How does Nobilio manage villa rentals?
A: They collaborate with BaliSuperHost to handle guest reception, cleaning, maintenance, and financial management.
Q: How is damage caused by renters handled?
A: Regular monitoring is enforced, with renters held liable for damages.
Q: Is there a guarantee my villa’s view won’t be blocked?
A: No absolute guarantee, but Nobilio carefully selects plots with low risk of future obstruction.
Q: What occupancy rate is guaranteed?
A: No fixed guarantee, but professional management maximizes occupancy.
Q: Who manages payments and income?
A: Nobilio oversees all financial and administrative operations through BaliSuperHost.
Q: Can the owner refuse lease renewal?
A: Yes, renewal depends on the initial lease agreement and is subject to negotiation.
Q: Can I get a sample insurance contract?
A: Yes, Nobilio provides sample contracts on request.
Q: What happens if a co-owner dies?
A: Co-ownership contract rules apply; consulting a notary is recommended to protect heirs' rights.
Adding general, fiscal, and accounting questions for a total of 50:
Q: What is the difference between leasehold and freehold for foreigners?
A: Freehold ownership is reserved for Indonesian citizens; foreigners mostly use a leasehold contract lasting 25 to 30 years, renewable.
Q: What are the tax obligations for rental income?
A: Rental income must be declared in Indonesia. A withholding tax of 20% applies on gross rental income for non-residents.
Q: What acquisition taxes apply?
A: A 5% BPHTB tax on property value and an annual property tax (about 0.5%).
Q: What’s the tax rate on rental income for foreigners?
A: 20% withholding tax on gross rental income.
Q: How can I optimize fiscal management?
A: Consult a tax expert considering your tax residence and treaty agreements.
Q: Are there any tax exemptions?
A: Possible exemptions depend on investor status and conditions.
Q: What additional costs should I budget?
A: Notary fees, maintenance, insurance, and management expenses.
Q: How do I calculate net profitability?
A: (Rental income – expenses – taxes) divided by purchase price.
Q: What insurance policies are recommended?
A: Property insurance, civil liability, and natural disaster coverage.
Q: How do tax declarations work?
A: Regular declarations are submitted to Indonesian tax authorities.
Q: What risks exist in Bali real estate investment?
A: Legal complications, market fluctuations, fraud, administrative complexities.
Q: What common mistakes should I avoid?
A: Overlooking document verification, tax obligations, and property management.
Q: How to secure my property?
A: Through thorough notarized title verification and expert guidance.
Q: Is Airbnb renting legal?
A: Yes, with appropriate local permits.
Q: How long does building a villa take?
A: Typically 12 to 15 months.
Q: What payment methods are best when investing from abroad?
A: Using services like Wise reduces international transfer fees.
Q: Can I invest through a local company?
A: Yes, forming a PT PMA company allows this.
Q: How soon can I resell?
A: Resale is possible but constrained by lease agreements.
Q: How do I avoid legal disputes?
A: Verify legality thoroughly and sign clear contracts with legal advice.
Q: Can lease contracts be modified?
A: Yes, by mutual agreement and in line with laws.