Rental Yields in Bali: What a Luxury Property Really Earns

The gross number

8–12% gross on managed short-let villas in strong locations in Bali. That is the number to start from, not the number to plan with.

Bali villa income is real, and so is the legal complexity. Foreign nationals cannot hold freehold; ownership runs through leasehold or a right-to-build structure. Buyers who get counsel right do well; buyers who use nominee arrangements eventually do not.

What comes off the top

Service charges, management fees, letting commission, insurance, maintenance reserve and void periods. In prime markets these routinely absorb a fifth to a third of gross rent, and service charges on branded or amenity-heavy buildings are the most commonly underestimated line.

Tax matters too: transfer and rental income taxes apply; short-let licensing is being enforced more tightly

Where the demand actually is

Canggu & Berawa: Highest occupancy; the most competitive supply.

Uluwatu & Bukit: Clifftop scarcity, strongest ADR.

Ubud: Wellness-led demand, longer stays.

How we underwrite it

Ten months of occupancy, three years of comparable evidence, and a resale assumption of flat real pricing. If the case only works on twelve months and rising rents, it is not a case — it is a hope.

Never use a nominee structure. Lease term remaining is the single biggest driver of resale value.