A headline return sounds impressive, but as an investor you want to know what remains at the bottom line. In this article we work through the full cost ladder, from rental income to the return after tax.
Start with the rental income
A well-positioned 2-bedroom villa in Canggu or Uluwatu typically generates between 30,000 and 50,000 dollars of rental income per year in 2025. At an occupancy rate of 80 to 95 percent, that is a solid starting point. But rental income is not a return: what counts is what remains after costs, and that depends entirely on how the property is managed.
What comes off
If you arrange everything yourself, the costs add up: property management, platform commissions for OTA channels such as Airbnb or Booking, maintenance, utilities, insurance and the local banjar contribution. In our own projects it works differently. Bali Estate Group charges one all-in management fee of 32 percent of the rental income, covering management and operations, OTA and platform commissions, utilities, insurance, staff, major maintenance and trend renovation. There are no separate property management or platform costs on top of it. Alongside the fee you pay an owners association contribution of 175 euros per month.
What remains
After the 32 percent fee and the owners association contribution, the return after costs in our projects lands between 15 and 20 percent of your investment, depending on occupancy. On top of that comes 10 percent Indonesian withholding tax on the rental profit, which we pay on your behalf; that gives the return after tax. One cost falls outside the fee: leasehold extension, at 7,200 euros per 5 years for a studio and 14,400 euros per 5 years for a suite or two-bedroom apartment. The payback period sits between 5 and 8 years, against usually more than 20 years for a rented home in the Netherlands.
How we make this transparent
We record the expected position within our 15 to 20 percent range in writing per project before you commit. We then report each quarter what actually remains, both after costs and after tax. No surprises, but verifiable figures. For your own tax situation, always consult an adviser.
