Bali villa ROI: rebuild the developer's sheet with sourced numbers.

Bali villa ROI in one formula.

Net return = (nights sold × achieved nightly rate − platform commission − management fee − running costs − lease decay − tax) ÷ everything you paid.

Each term can be checked. Nights sold comes from occupancy, and measured occupancy exists for hotels. The achieved rate is what guests paid after discounts, not the rate card. Commission and the management fee sit in contracts you can ask to see. Lease decay is plain arithmetic. “Everything you paid” means the price plus purchase costs, furniture, and the company and licences if the villa is to be rented legally.

Below, each term in turn. Where a number has a named source we say so; where none exists we use a placeholder for you to replace with your own contract figure.

The lines a sales sheet tends to leave out.

Achieved rate

Kibarer reports owners discounting 10–30% to hold bookings. That is an agency observation; ask the seller for the average rate actually received over twelve months. As a cross-check, the 2025 average daily rate across Bali hotels was IDR 2.35 million, roughly USD 150 (Horwath HTL).

Commission and management fee

We found no reliable island-wide figure for booking-platform commission or villa management fees, so we will not quote one as fact. Both are in documents: the platform's terms and the management agreement. Read whether the manager's percentage is charged on gross bookings or on what is left after commission, and which costs are passed to the owner on top.

Running costs

A rental villa has staff, power, water, pool and garden care, linen, internet and repairs in a humid, salty climate. One line can be sourced: the 2026 minimum wage in Badung is IDR 3,791,003 a month per full-time employee (Governor's Decree on 2026 minimum wages). The rest should come from a manager's statements for a comparable villa, not from a brochure.

Tax

A company pays corporate income tax at 22%; companies with turnover up to IDR 50 billion get a 50% rate reduction on the taxable income from their first IDR 4.8 billion of turnover (ASEAN Briefing). The 0.5% final tax on turnover is reported closed to companies since Government Regulation PP 20/2026 took effect on 22 April 2026. Tax on moving profit to you personally depends on your country and any treaty. Confirm all of it with a tax adviser.

Lease decay: the cost that never arrives as a bill.

A foreign buyer of a Bali villa usually holds a lease, not freehold. Agents describe a typical private lease as 25–30 years, and Horwath HTL puts leases in hospitality-managed developments at 25 to 35 years, with renewal “subject to agreement”. An extension is described as a new deed priced at the land value of that day, which makes it a second purchase and not a continuation. Confirm how your deed handles it with a notary.

So the lease is a wasting asset. Spread evenly, a 25-year lease loses 4.0% of its price every year, a 30-year lease 3.3% and a 35-year lease 2.9%. A sheet that shows 10% a year on a 25-year lease is showing 6% once the lease is counted, before any other line. A resale villa with 14 years left loses 7.1% a year.

Resale does not escape the sum. A buyer in year ten is purchasing fifteen years and will do the same arithmetic.

Bali property ROI against a restaurant share: a different risk profile.

We build and co-own restaurants, and we will not tell you the maths is kinder there. It is different.

A restaurant is an operating business. Published benchmarks for Indonesia put net margins at 5–12% of sales for casual dining and 10–20% for fine dining (Klikit, 2026). A broker's article claims 15–25% with payback in about two years. Both come from interested parties, and no independent payback study for Bali restaurants exists. The resale market offers a sobering data point: an Uluwatu restaurant listed for sale reports USD 453,000 of turnover and USD 17,000 of profit over twelve months, under 4%.

Lease decay is faster, not slower. Restaurant premises in Bali are commonly leased with only 5 or 10 years paid up front, as licensing consultants report, so a fit-out must pay for itself within a shorter term than a villa lease. For scale, our indicative 2026 range for an 80-seat restaurant built on empty land is IDR 3.5–4.7 billion (about USD 213,000–286,000); a fixed price follows drawings and a bill of quantities.

What changes is where the uncertainty sits. When the plot is dry and zoned for tourism or commerce, the building approved and the lease notarised in the name of a PT PMA, a restaurant leaves fewer land and licensing unknowns than a villa bought via a nominee or let without a tourism licence. Its risk is operational: the kitchen, the team, the lease renewal, 64,521 other venues (BPS, 2024). The operator's track record and monthly reporting carry the weight that zoning and licences carry for a villa.

Our co-ownership offer is shares in the Indonesian company (PT PMA) that holds the lease and licences, with a shareholders' agreement drafted by a notary; ticket size, reporting and exit terms are set per project and sent as a project sheet on WhatsApp. We quote no expected return. See what a share in a restaurant involves and what a co-owner should ask for.