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The vacant land lease or
Opt for a lease of land, on which you will build the villa of your dreams, has advantages of simplicity, security, but also a financial interest.
Simplicity: the administrative procedure is simplified and the drafting of the act (lease agreement) is fast even though it is mandatory to use a notary
Security: because it will be a deed (cf. Bali Gazette No. 33 – February 2008) and the notary will verify the identity of your lessor, his title, etc. And because whatever your nationality, whatever the nature of your visa, Indonesian law recognizes fully to this day the right to rent a medium to long-term field.
We must refer mainly to Hukum Perdata (the Indonesian Civil Code) to find the legislation on leasing and in combination with law number 40 of 1996 concerning land ownership. Indeed, if at the end of Hukum Perdata, no time to hire has been made, however, the legislature of 1996, anxious to preserve the lands of its citizens, has limited the transfer of ownership to 25 years, with the possibility extensions for the same period (Article 45 of the Law). At the contradiction of these two texts, case law has extended the time limit for rental procedure.
In practice, in the contract, will be shown: the initial term of the lease and, depending on your goals, one or more options to renew the limit of 25 years each. The contract will automatically terminate to an end; it can not be revoked in case of non payment of rent at the agreed time, without formality or specific legal proceedings (Article 1266 and 1267 Hukum Perdata). Will also set the benchmark of the rent: dollar, euro or gold.
As for taxes: it is customary for those related to the field are the responsibility of the tenant (given the fact that the owner no longer has any use or enjoyment of his land, he does is not liable). The owner remains however naturally light of income tax and other taxes generated by the transaction. In this area you will use and the long-term enjoyment, a construction can be built, permanent or not. This construction may eventually be sold or leased without at any time the land owner has any control over your transactions.
Of course, it will apply for a building permit (IMB), which will be made on behalf of the owner and for you (the best is to be agreed by contract). If you have a “Kitas”, however, demand is naturally made in your name. The cost of the IMB varies depending on the area in which your property is located, and the surface of your construction. The administration of the scales. It should also pay to the banjar the “use tax”, again the amount varies by location.
Note also that there is in principle a tax on the construction that you can be claimed. It necessarily comes from the department and is based on administrative scales; if you appear too high, do not hesitate to discuss with the competent authority, may négocier.Respectueux local customs, you will not omettrez to make the customary ceremonies in reference to the Balinese calendar before and completion of the work. At the end of the contract, the owner takes possession. In theory, the land must be cleared of any building. A You may predict as possible to “knock down” or negotiate with your landlord a few more years in exchange for the maintenance of the building to your départ.Enfin, do not lose sight of the financial interest of the rental that in reference to the current market, representing an average, over 20 years, 30 to 40% of the price of a freehold … topic that will be discussed in a future article.
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