Any tax benefits depend on your personal situation. Please note that it is important to seek professional tax advice to understand how these benefits may apply to your specific situation.
Double Taxation Agreement: The treaty between the Netherlands and Indonesia can help prevent you from paying tax twice on the same income and may also lead to a reduction in withholding tax rates.
Depreciation: Depreciating the cost of a building and improvements to the property can lower your taxable income and lead to tax savings.
Tax Deduction for Maintenance and Repairs: Investors may qualify for tax deductions for maintenance and repair costs necessary to preserve the property’s value.
Capital Gains Tax Exemption: Indonesia may have a capital gains tax exemption on the sale of real estate, depending on the duration of ownership and circumstances.
Low Transfer Tax: In some cases, the transfer tax (BPHTB) in Indonesia can be relatively low, allowing investors to pay less tax when purchasing real estate.
Favorable Tax Rates on Rental Income: Depending on the tax legislation in Indonesia, Dutch investors may benefit from favorable tax rates on rental income.
Reduced Tax on Dividends: The double taxation treaty between the Netherlands and Indonesia can result in reduced tax rates on dividends arising from investments in property in Bali.
Income from Foreign Source: Dutch investors can benefit from Dutch tax rules for income from foreign sources, which may lead to tax advantages, depending on their personal situation.
Foreign Tax Credits: Dutch investors may be able to claim foreign tax credits for taxes they have paid in Indonesia, thereby reducing their tax liabilities in the Netherlands.
