Badung taxes a villa at 0.2% a year. The number it applies that rate to is not in the published file

Every buyer of a Bali villa hears about the transfer tax, because it is payable at the moment money changes hands and a notary asks for it. Almost nobody is told what arrives every year afterwards. It is called PBB-P2, the rural and urban land and building tax, and in Canggu it is levied by Kabupaten Badung under a regulation that has been in force since the start of 2024.

We went looking for three numbers: the rate, the valuation the rate is applied to, and the untaxed allowance. We found two of them in minutes. The third turned out not to be in the file the regency publishes.

What does Badung actually charge, and on what?

The chain starts nationally. Law 1 of 2022 caps PBB-P2 at 0.5 per cent a year^{Source: 5}Kementerian Keuangan Republik Indonesia, JDIH, Last reviewed 05/10/2026Confidence: Verified and leaves the actual figure to each regency. The same law sets a floor under the untaxed allowance, NJOPTKP, of IDR 10,000,000 for each taxpayer.^{Source: 5}Kementerian Keuangan Republik Indonesia, JDIH, Last reviewed 05/10/2026Confidence: Verified It also lets a regency decide what share of the remaining value it actually taxes: anywhere from 20 to 100 per cent.^{Source: 5}Kementerian Keuangan Republik Indonesia, JDIH, Last reviewed 05/10/2026Confidence: Verified That last provision is the quiet one, and we will come back to it.

Badung made all three choices in Perda 7/2023. The regulation was enacted on 28.12.2023 and applies from 01.01.2024.^{Source: 6}Badan Pendapatan Daerah Kabupaten Badung, Last reviewed 05/10/2026Confidence: Verified Its Article 8 sets two rates: 0.1 per cent a year where NJOP is up to IDR 1,000,000,000, and 0.2 per cent where it is above.^{Source: 1}Badan Pendapatan Daerah Kabupaten Badung, Last reviewed 05/10/2026Confidence: Verified Land used for food and livestock production is charged at 0.09 per cent.^{Source: 1}Badan Pendapatan Daerah Kabupaten Badung, Last reviewed 05/10/2026Confidence: Verified Article 7 sets NJOPTKP at IDR 26,000,000 for each taxpayer, and grants it on one object only, however many the taxpayer owns in the regency.^{Source: 1}Badan Pendapatan Daerah Kabupaten Badung, Last reviewed 05/10/2026Confidence: Verified

That leaves the share. The Perda repeats the national 20-to-100 band and defers the number to a regulation of the Bupati. Perbup 27/2024 fixes it at 100 per cent of NJOP after the allowance.^{Source: 2}Badan Pendapatan Daerah Kabupaten Badung, Last reviewed 05/10/2026Confidence: Verified Badung took the top of the band, which is the least favourable end for the owner and also the simplest to administer. Neither the Perda nor the Perbup explains the choice.

What does the reference villa pay a year?

Canggu sits in Kabupaten Badung, so this is the regulation that applies to it. Take the two-bedroom villa at USD 400,000^{Source: 7}Bank Indonesia, Last reviewed 05/10/2026Estimate that this publication already uses as its reference object. Bank Indonesia’s JISDOR reference rate on 05.10.2026 was IDR 17,917 to the dollar^{Source: 7}Bank Indonesia, Last reviewed 05/10/2026Confidence: Verified, which puts the purchase at about IDR 7,166,800,000.^{Source: 7}Bank Indonesia, Last reviewed 05/10/2026Estimate

Suppose for a moment that the tax office values the villa at exactly what the buyer paid. The value is far above the band threshold, so the rate is 0.2 per cent^{Source: 1}Badan Pendapatan Daerah Kabupaten Badung, Last reviewed 05/10/2026Confidence: Verified. Subtract the allowance, tax the whole of what is left, and the bill is IDR 14,281,600 a year, about USD 797.^{Source: 1}Badan Pendapatan Daerah Kabupaten Badung, Last reviewed 05/10/2026Estimate That is almost exactly the headline rate, which is the arithmetic working as designed: at a 100 per cent taxed share^{Source: 2}Badan Pendapatan Daerah Kabupaten Badung, Last reviewed 05/10/2026Confidence: Verified, the headline rate and the effective rate are nearly the same thing.

Two details are worth pulling out. The lower 0.1 per cent band ends at IDR 1,000,000,000, which is about USD 55,800 at today’s rate^{Source: 7}Bank Indonesia, Last reviewed 05/10/2026Estimate — below the price of essentially any villa marketed to a foreign buyer, so the lower band is not the one that applies. And the IDR 26,000,000 allowance removes IDR 52,000 from the bill, about USD 2.90 a year.^{Source: 1}Badan Pendapatan Daerah Kabupaten Badung, Last reviewed 05/10/2026Estimate It is a real provision with a real effect on a modest Balinese house. On a villa at this price it is a rounding error.

We checked the method against the regulation’s own illustration rather than against our own reasoning. The explanatory note to Article 8 builds the value from four components, not two: 800 square metres of land at IDR 300,000, 400 square metres of building at IDR 350,000, 200 square metres of garden at IDR 50,000 and 180 square metres of fence at IDR 175,000. It deducts the allowance from the building side, applies 0.1 per cent and arrives at IDR 395,500.^{Source: 1}Badan Pendapatan Daerah Kabupaten Badung, Last reviewed 05/10/2026Confidence: Verified The garden and the fence are the part a reader is most likely to miss, and they are a tenth of the total. A villa’s pool, parking apron and perimeter wall are assessed too; the land and the house are not the whole of the base.

Why is the purchase price good enough for one tax and not the other?

Here is the part that matters more than the rate. The same Perda also governs BPHTB, the tax on acquiring the right. For a sale, Article 12 says the base is the transaction price, and that NJOP is used instead only where the transaction price is unknown or lower than NJOP.^{Source: 1}Badan Pendapatan Daerah Kabupaten Badung, Last reviewed 05/10/2026Confidence: Verified Article 13 sets the rate at 5 per cent, after an allowance of IDR 80,000,000 on a taxpayer’s first acquisition in the regency.^{Source: 1}Badan Pendapatan Daerah Kabupaten Badung, Last reviewed 05/10/2026Confidence: Verified On our villa that is about IDR 354,340,000, roughly USD 19,780 — close to twenty-five years of the annual tax, paid once.^{Source: 1}Badan Pendapatan Daerah Kabupaten Badung, Last reviewed 05/10/2026Estimate

So the regency is perfectly willing to use the price you paid. It uses it for the one-off tax, and it uses the assessed value as a floor underneath it, so an understated contract cannot reduce the transfer tax below the assessment. The transaction price is a floor for the transfer tax and never a floor for the annual one. Nothing in either document runs the relationship the other way.

The definitions make this stranger rather than clearer. Both the national law and the Perda define NJOP as the average price obtained in arm’s-length sale transactions, falling back to comparison with similar objects, replacement cost or a substitute value where no transaction exists. Read literally, a villa that just sold has a transaction. But the operative articles put the number somewhere else: NJOP is set every three years — except for certain tax objects, which may be set every year in line with how the area develops — and its amount is fixed by a regulation of the Bupati.^{Source: 1}Badan Pendapatan Daerah Kabupaten Badung, Last reviewed 05/10/2026Confidence: Verified A sale in March does not update anything in itself. What the buyer paid and what the buyer is taxed on are produced by two different processes, and the documents provide no bridge between them.

The exception is not a footnote in Canggu. Neither document defines which objects are “certain”, and a regency whose western coast is the fastest-developing land in Bali has written itself the power to reprice there annually while the rest of the schedule moves on a three-year cycle. A buyer cannot tell from the published text which of the two they are in.

This is the finding, and we want to state it without dressing it up. The rate is public. The allowance is public. The taxed share is public. The valuation is administrative, set by a decision of the Bupati rather than by the contract, and not derivable from the price paid by any method either document describes.

What is missing from the published file?

Perbup 27/2024 is titled, in translation, “the amounts of NJOP and the percentage of NJOP for PBB-P2”. It does two things. Article 3 gives the taxed share^{Source: 2}Badan Pendapatan Daerah Kabupaten Badung, Last reviewed 05/10/2026Confidence: Verified. Article 2 says the amounts themselves — the classification and value of land, and the schedule of building component costs — are set out in Annex I and Annex II, “which form an inseparable part of this regulation”.

The file published by Badung’s own revenue agency is four pages long. It contains the articles and neither annex. We could not open the regency’s legal information portal to look for a fuller copy: the host refused the connection on 05.10.2026. The national regulation database at peraturan.bpk.go.id returned HTTP 403 to every request on the same day.

One regulation later the pattern breaks, and the document that breaks it is the most useful thing we found. Perbup 28/2024 grants an automatic reduction in the assessed amount, applied through the tax system without the owner asking. It is not given where there was no assessment in the previous tax year^{Source: 3}Badan Pendapatan Daerah Kabupaten Badung, Last reviewed 05/10/2026Confidence: Verified — which is precisely the position of a newly built or newly registered villa, so a first bill arrives without it. Perbup 15/2025, signed on 05.06.2025, rewrote the mechanism to work from a reduction percentage, and its annex is published: page five of the same file, under the Bupati’s seal.

Read what that annex is indexed by. It scales the relief to how far this year’s assessment has risen above last year’s, in thirteen bands: a rise of 1 to 50 per cent earns a 5 per cent reduction, a rise of 51 to 500 per cent earns 20 per cent, and the bands climb through 1,000, 3,000, 10,000 and 100,000 per cent to a top band that ends at 999,999 per cent and earns 50 per cent.^{Source: 4}Badan Pendapatan Daerah Kabupaten Badung, Last reviewed 05/10/2026Confidence: Verified

A regency does not write a thirteen-band relief scale, and does not set its ceiling at a rise of nearly a million per cent, for assessments that move gently. The annex is Badung’s own statement that a PBB-P2 bill here can multiply year on year, and the sharper the jump the more of it the regency gives back — up to half, and never more. This is the closest thing to an answer to the question this piece opened with, and it arrives from the direction we were not looking: not from a schedule of values, but from the relief written for what happens when those values move.

Ubud is in Kabupaten Gianyar, which writes its own Perda and may well have chosen different numbers under the same national ceiling^{Source: 5}Kementerian Keuangan Republik Indonesia, JDIH, Last reviewed 05/10/2026Confidence: Verified. We could not confirm Gianyar’s rate or allowance.^{Source: 8}Pemerintah Kabupaten Gianyar, Last reviewed 05/10/2026Unverified Its legal portal returned HTTP 403 behind a bot check on 05.10.2026, and the regency’s main site did the same. Gianyar’s public PBB-P2 portal does load, and it will quote a bill against a tax object number, but it publishes no rate and no allowance. Until we read the document we are not going to print a figure for Ubud.

What is the case against this reading?

The bill we computed is a ceiling, not a prediction. Assessed values in Indonesia are commonly set well below market, and we have no Badung figure to measure that gap with, because the schedule that would let us is the annex we could not obtain. Our number answers a conditional question — what the tax would be if the assessment matched the price — and the honest reading of it is an upper bound on a Canggu villa bought at that price, not a prediction of the envelope.

The annexes may well be published somewhere we could not reach. Two of the three portals that would normally hold them refused us on the same day, one by connection refusal and one by bot check. An editor sitting in Mangupura with a request under the public information rules would very likely get the schedule. The claim we are making is narrower than “Badung hides it”: the agency that publishes the regulation publishes it without the attachment it names as inseparable, and a buyer cannot compute a bill from what is on the website.

We read scanned documents. The Perda and the two Perbup files are scans with an imperfect text layer, and the amending Perbup had no usable text layer at all, so we read its operative pages as images. We transcribed the figures by eye and checked the arithmetic against the regulation’s own worked example, which it reproduces exactly. That is a good check on the formula and a weaker one on any individual digit.

The exchange rate is a snapshot. Every dollar figure here is one day’s JISDOR rate applied to a rupiah statute. The rupiah figures are the durable ones; the dollar conversions will drift and should be redone rather than quoted a year from now.

Who pays is not the same question as who owns. The Perda makes the taxpayer whoever actually holds a right over the land or benefits from the building. A nominee arrangement, a lease or a PT PMA changes who receives the assessment notice and who is on the hook for it. It does not make the tax go away, and we have not traced how each structure is treated in practice.

What we are asking for

We have written to Badung’s revenue agency for Annex I and Annex II of Perbup 27/2024, and for the reduction schedule in Perbup 15/2025. If we receive them, we will publish the land value classes for the Canggu area alongside this piece and replace the conditional figure above with a real one.

In the meantime, the question worth putting to a seller or an agent is not “what are the annual costs”. It is narrower and harder to deflect: what is the NJOP on the current assessment notice for this specific object, and may we see the notice. That single document contains the number the whole calculation turns on, it already exists for any villa that has been assessed, and it is the one piece of the chain that no regency portal will hand a buyer.