Why are more and more international investors choosing real estate in Bali (Indonesia) over Europe? The answer is purely in the numbers: Investing in Bali in 2026 offers a significantly higher net ROI (10-15%), year-round occupancy rates (70-85%), and favorable tax conditions for foreign investors. Additionally, it offers welcome geographical diversification for real estate portfolios.
While the European real estate market struggles with high transfer taxes, stagnating yields, and strict rental regulations, Bali offers a dynamic market that is growing alongside record tourist numbers. In this article, we discuss the 6 key benefits of investing in Balinese real estate.
1. A Structurally Higher ROI (10% to 15% Net) on Bali
For most investors, the Return on Investment in Bali is the deciding factor. While you might be happy with a net rental yield of 4% to 6% in traditional European markets like Spain, the numbers in Bali are substantially higher. A well-managed villa in a strategic location (such as Canggu, Uluwatu, or Seseh) can realistically achieve a net return between 10% and 15%.
Read the fine print: You will often see ads online promising sky-high ROIs of over 20%. Always do thorough research (or let us conduct a Due Diligence) to get a realistic picture of what is actually achievable.
2. 365 Days of Yield in the Bali market
A major downside of investing in Southern Europe is seasonality; outside the summer months, many properties sit empty. Bali, on the other hand, has become a year-round destination. Thanks to the tropical climate and a unique mix of target audiences—from digital nomads and winter sun-seekers to avid surfers and luxury vacationers—there is a continuous demand for quality accommodation. This makes an annual occupancy rate of 70% to 85% highly achievable.
3. Attractive entry prices for investing on Bali
The barrier to entry in Bali is significantly lower than in popular European coastal resorts. Depending on your preferences, budget, and goals (for example, an off-plan project versus a turnkey villa), there are investment opportunities starting at highly attractive price points. Simply put, in Bali, you get far more square footage, luxury, and high-end design for your money than you would in Europe.
4. Invest Hands-Off via Professional Management companies on Bali
Many investors worry that owning property on the other side of the world will cost too much time and stress. The reality is that the rental market in Bali is so well-established that you can genuinely generate passive income.
Professional Property Management companies take over the entire operation. They seamlessly handle:
- Daily maintenance, cleaning, and staff management (including gardeners and pool maintenance).
- International marketing across booking platforms.
- Guest communication and smooth check-ins.
5. Tourism continues to grow exponentially on the island of Bali
Real estate value is directly linked to demand. And the demand for Bali keeps rising. In 2025, the island welcomed over 6.9 million international tourists, an impressive increase of approximately 10% compared to the previous year (Source: Badan Pusat Statistik Indonesia).
As long as the government continues to invest in infrastructure and the island preserves its unique culture and nature, the demand for luxury, private villas will continue to outpace supply in the popular coastal towns.
6. Favorable international tax treaties
Finally, the tax side of things. If you own real estate in Bali as a foreign investor, you typically have to declare it in your home country. However, Indonesia has established Double Taxation Agreements (DTAs) with dozens of countries worldwide.
Because the villa is located in Indonesia, the Indonesian government has the primary right to tax the property and the income generated from it. Through these international treaties, you can usually claim a tax relief or exemption in your home country’s tax return. This prevents you from being taxed twice on the same income, making your investment in Indonesia exceptionally profitable.
Start your investment journey with Bali Property Advisory
Investing abroad is a major step that requires local expertise and the right legal structure (such as setting up a PT PMA). At BPA, we focus on exclusively selected real estate. We guide international investors every step of the way—from the very first viewing to the ultimate rental execution.
Want to invest safely and profitably in Bali?
Download ‘The Bali Real Estate Guide 2026’ for free and discover how you can enter the market securely as an international investor.
- The exact steps to secure 100% ownership via a PMA.
- How to smartly navigate local and international property taxes.
- The 5 most common legal mistakes made by foreign investors.
Disclaimer: This article contains general information and does not constitute financial or tax advice. Returns on investment may fluctuate. Always consult with a qualified professional before making any investment decisions.
