Setting Up Property PMA in Bali

Setting Up Property PMA in Bali

While you live a comfortable life in this beautiful paradise, there are ways to grow your wealth through investments and property investments are one excellent choice. While enjoying the warm and sunny weather all-year round, views of rice paddies, mountains and beaches, you get to invest in Bali and have a business and a place to call your home.

We know that property investment is not the same as going on a holiday, it’s a tough decision and you need someone you can trust to help you with it. being in the real estate industry in Bali I appreciate it can feel like a confusing process at times, especially for foreigners, but it is worthwhile, given the high returns of passive income that you can turn into your own home at any given time. The point is having the right guide to make a smart decision.

You will need to set up a PT PMA in the category ‘OWNED OR RENTAL REAL ESTATE’:

“This group includes the business of buying, selling, renting and operating real estate, both owned and leased, such as apartment buildings, residential buildings and non-residential buildings (such as storage/warehouse facilities, malls, shopping centres and others) as well as the provision of houses and flats or apartments with or without furniture for permanent use, either monthly or yearly. These include the activities of selling land, developing a building for self-operation (for leasing spaces in the building), dividing real estate into land plots without developing land and operating a residential area for movable houses.”

Requirements For Registering A Property PT PMA

It is possible to register a property PMA from outside of Indonesia or from within Indonesia. We will need the following:

• Copy passport shareholders
• Copy ID and tax register number of local shareholder (if any)
• Overseas and Indonesia address of each investor
• Company name
• Company address
• Line of business (which will be OWNED OR RENTAL REAL ESTATE)
• The share of capital for each investor (total capital min. US $ 1.000.000 and issued capital min. US $250.000)
• Position of each investor in the company (Director, Commissioner)

You need to have at least 2 shareholders, 1 director and 1 commissioner. There can be up to 3 people for each position, which later can be called as Board of Directors and Board of Commissioners.

The company address for your property business needs to be registered as an office with the relevant local authorities, so in most cases cannot be your house or an alternative place of business you might be affiliated with. The simplest solution is to use a Virtual Office ( we can assist for get the Virtual Office )

The process of starting a property company in Bali takes 3-4 weeks.

build and rent property in Bali

Applying For Investor Visa Through Your Property Company

Once you have your Property PMA set up you can use it to sponsor several Investor KITAS. The Investor Visa is valid for one or two years and available onshore or offshore

Operating a PMA

Company Tax in Bali

For every company in Indonesia, it is mandatory to report the annual tax. The general income tax rate is around 12.5-25% of the net profit if the company’s gross revenue is above IDR 4.8 billion. A flat rate of 25% is applied when the yearly revenue of the company is above IDR 50 billion. If the company’s gross income is below IDR 4.8 billion, the final income tax rate is 0.5% of the monthly gross income.

PMA Investment Reports

Additionally, to paying taxes, you will need to do a quarterly investment report. This report usually contains the profit and loss statement of your company, information on the number of employees, etc. This report is important as the government will see that your company is up and running instead of being a dormant company. Failing to provide such a report will attract the authorities to run an audit of your company.

If you need assiatance or discussion you can contact us on whats app at +6281331733073 or at email on dewatalegal@gmail.com