Acquisition price (off-plan)
- Amount
- 150,000 €
Returns by area
By Mathieu MAILLOT — 7 min read

Bali continues to fascinate investors, drawn by its idyllic landscapes and strong tourist demand. When it comes to property returns in Bali or rental yield, however, you need to go beyond commercial promises focused on gross yield alone. Turnover, net yield, return on investment (ROI), costs, property tax in Bali: experts know that a rigorous calculation is required before any villa investment in Bali. Here is how to assess the real return on letting a villa in Bali, taking every determining variable into account.
Distinguishing turnover, gross yield, net yield and real return is fundamental to any informed decision. These indicators are often confused, although they correspond to very different realities. A precise understanding makes choices easier and avoids disappointment after the purchase.
Before going into the figures, a few clear definitions are needed in order to structure any thinking about property investment in Bali.
Turnover is the annual income generated by letting the villa, with no costs deducted. In Bali, it comes mainly from the price per night (ADR) multiplied by the number of nights actually let during the year. That amount looks impressive, but it does not yet reflect the property’s real financial performance.
Gross yield is the ratio of annual turnover to the villa purchase price. It gives a first quick idea, but it remains misleading because it ignores all operating costs, fees and taxes linked to the activity.
Net return includes all the charges and operating costs borne each year: management fees, maintenance, staff, energy, booking platforms, a works reserve and property tax in Bali. This is the ratio that reveals the investment’s true potential.
By extension, Bali ROI (return on investment) makes it possible to compare this investment with other international markets or types of investment. A careful reading of net yield and ROI protects against illusions and unrealistic projections.
Many investors underestimate the importance of each variable in the calculation. These items determine the result. The reports of BPS Bali, on the BPS Bali website, describe tourism in the province. They do not give a villa yield.
Here are the main items that must be included:
Each of these items will vary according to the location, size, standard and target clientele of your villa in Bali. Adapting the simulation to the reality of the local market is a sign of seriousness and caution.
Neglecting a single item mechanically affects the net return shown, and therefore the return on investment in Bali. It is better to project a complete and honest estimate than to feed unrealistic hopes.
To understand better, a figured simulation is enough, provided it is read as a hypothesis. The table that follows takes a one-bedroom villa with a pool in Pererenan. It is not an observed transaction.
Here are the steps for calculating the return precisely:
The main formulas for following a property investment in Bali are:
Remember to include every item of expenditure, especially for a short-term or long-term villa letting, because the cost structure varies sharply according to the management chosen.
Costs are listed item by item: management, staff, energy, maintenance, a works reserve and taxes. No typical percentage is used. Forgetting an item improves the result on paper, not in the accounts. Taxes are calculated separately, according to the structure and the activity.
The amounts in the table are hypotheses chosen for this demonstration. The balance shown is a result after the operating costs written there. It is not a simulation of the tax due on tourist letting: that tax is calculated separately, according to the structure and the activity, and is then deducted. The result is not a market yield and is not guaranteed.
Acquisition price (off-plan)
Average price per night (ADR)
Annual occupancy rate
Number of nights let per year
Annual gross turnover
Rental management (15% of turnover)
Staff, maintenance, utilities, platforms and operating costs
Maintenance / works reserve
Tax
Estimated net result
Gross yield
Net yield
| Indicator | Amount |
|---|---|
| Acquisition price (off-plan) | 150,000 € |
| Average price per night (ADR) | 115 € |
| Annual occupancy rate | 70% |
| Number of nights let per year | ≈ 256 nights |
| Annual gross turnover | 29,383 € |
| Rental management (15% of turnover) | − 4,407 € |
| Staff, maintenance, utilities, platforms and operating costs | − 4,000 € |
| Maintenance / works reserve | − 1,500 € |
| Tax | Excluding tax |
| Estimated net result | 19,476 € |
| Gross yield | 19.6% |
| Net yield | 13.0% |
In Bali, many foreign acquisitions are of a hak sewa, whose remaining term is that of the contract. That changes the analysis compared with full ownership: the right erodes over time.
The remaining term of the lease is part of the analysis, together with the location, the condition of the property and the clauses. It does not reduce the value according to a fixed rule.
A gross rate announced by a developer is not the net yield. Costs, vacancy, works and exchange rates reduce it. The result is not guaranteed. Only a calculation that includes these items, and then the taxes, gives a useful reading. That reading remains a projection.
An informed investor will compare rental yield in Bali with those of other Asian or European destinations, keeping in mind the key notion of final liquidity on resale.
The occupancy rate and the ADR move with the global tourism context. A good year can lift the results, but a geopolitical or health crisis quickly lowers performance. Diversifying a Bali villa letting strategy between short and long stays helps absorb shocks.
It is better to stay cautious and favour conservative scenarios so as not to overestimate property returns in Bali.
Investing in Bali raises many legitimate questions. Here are the answers to the most common ones.
The occupancy rate depends on the villa’s positioning, the segment targeted and the quality of management. There is no average to cite here. Seasonal variations are strong. BPS statistics describe tourism in the province, not the occupancy of a villa.
Flexible management, adapting rates to the season, limits the impact of quiet periods and supports a better occupancy rotation.
People often think that everything costs less in Bali, but aiming for hotel-quality service requires substantial investment in people and equipment. Electricity, water, maintenance, staff and tourist tax push up villa costs in Bali.
Setting aside a maintenance reserve every year protects against unpleasant surprises such as renovations caused by the tropical climate.
Any taxes depend on the nature of the income, the activity, the structure and the taxpayer’s situation. They do not all apply, or apply in the same way, to every project.
Calling on an experienced local professional helps identify the applicable tax and the points to check. It does not make tax optimisation automatically possible.
A comparison with Thailand, Spain or Portugal cannot be deduced from market figures. ADRs and occupancy rates are not stated here. The legal and tax framework is checked for each country.
A strong dollar, the digitalisation of bookings and the resilience of international tourism make Bali attractive, but they also require rigour and care in projecting the expected net flows.

We advise international investors looking in Bali and Lombok: location, budget, how to hold the asset, and which projects to consider.