1. Obtain a valid Indonesian Tax Identification Number (NPWP).
2. Register a local company, which is a common method for foreigners to acquire property in Bali.
3. Obtain a building permit (IMB) and other relevant permits to ensure the property is legally constructed and compliant with local regulations.
4. Ensure that the land or property is not located in a protected area, such as a nature reserve, and is not subject to any land disputes or claims.

The tax rate on rental income in Bali depends on your status as a tax resident. If you’re a tax resident, you’ll have to pay 10% of the rental income as tax. If you’re not a tax resident, the rate is 20%.

For instance, if you earn IDR 100,000,000 from renting out your property, you’ll have to pay IDR 10,000,000 in rental property tax if you are a tax resident. This tax is paid annually by reporting your rental income and tax liability on your tax return and paying the tax to the tax office before the deadline.

Foreigners don’t have to register a foreign-owned limited liability company (PT PMA) to buy property in Indonesia, but it is a safer option. PT PMA can use a local nominee or company to own land and property, making it a secure way for foreigners to own property in Indonesia.

As a foreigner, you’re not allowed to directly own land in Indonesia. However, you can own a building on leased land from the government or a local owner. To do this, you need to get a Right to Build and Own (Hak Guna Bangunan or HGB), which permits you to construct and own a building on a piece of land, but not the land itself.