It is undoubtedly based on this observation that Secundo Atlas has opted for a multitude of sites allowing it to respond to all types of requests, but above all to be able to find crossroads for those who would be too frightened by the wave which is already overwhelming certain sides of the island or pushed back by a lack of offers, the authorities having (finally) decided to limit the conversion of rice fields into building land. Certainly, the Belgian agency focuses on Ubud (center), without daring to avoid Canggu, Pererenan (west) and Uluwatu (south), but it also goes to Amed (east), Lovina (north) and in the island of Nusa Penida (south).
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On the other hand, it only works with a single construction partner, with French connections: Magnitude Construction. She is not the only one to trust her: Homes&Villa by Marriott has in fact asked the same manufacturer to be able to take charge of the management of all its Balinese rentals.
gullWhen the client subscribes to this land use right, he must pay in one go for the first twenty or thirty years of rental. This reassures the owner who is often an individual.”
Villa catalog
Here, Secundo Atlas has no apartments to offer. Its clients choose a plot of land and build the villa of their dreams there. Or their budget. “Magnitude Construction offers land in subdivisions or scattered here and there, and a choice of projects, which the buyer is obliged to personalize, because in Bali, no villa can be identical to another.”
You should count from 195,000 euros for a fully equipped one-bedroom villa (furniture, appliances, lighting, decoration, etc.), 230,000 euros for two bedrooms, 280,000 euros for three, 327,000 euros for four, 450,000 euros for six. “Excluding acquisition costs which are between 11 and 12.5%, adds the broker, but land included. At least rental of the land for twenty years, with the possibility, recently, of extending it to fifty years.”
“When the client subscribes to this land use right, he must pay in one go for the first twenty or thirty years of rental. This reassures the owner who is often an individual (farmer, trader, etc.). At the end of this first ‘lease’, the tenant may or may not continue the rental, at a price updated by an average of three notary evaluations. But the owner cannot refuse it.”
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On the Ubud side, it currently costs between 490 and 500 euros/area/year. In Uluwatu, we are between 1,200 and 1,300 euros/area/year. The land being small (three to ten acres), their rental over twenty years represents approximately a fifth of the total sale price.
Taxation between simplicity and complexity
Please note that the long lease is only valid for the land. The building is acquired in full ownership. But both must be registered in a SCRL type company whose shares will be held by Belgian clients as natural or legal persons. “The company is, however, only required by the Indonesian state in the context of a commercial activity, that is to say if you want to rent your property. If you want to live there yourself, the company is not obligatory.”
On the tax side, Jean-Charles Bodart talks about the simplicity of local income taxes (0% for the first three years, 15% thereafter) without hiding the complexity of the tax on dividends in Belgium.
