New Luxury Regulation May Derail Bali Villa Market
Starting in March a new regime that requires property developers and brokers in Bali to report on all transactions over USD55,000 could hit the industry hard.
Reported by Balidiscovery.com the regulation is aimed at money laundering and is targeting luxury property and goods.
While the legal ramifications have yet to be fully understood or implemented, the law is intended to counter the growing number of individuals sheltering assets or funds obtains through illegal activity.
Property experts say they have yet to see the act in motion but certainly nominee structures will be put to the test.
An add on to the reporting could be the linkage of reported transactions and a tail by taxation authorities for the collection of luxury tax.
I'm currently in Bali and speaking to local real estate developers and agents, there remains a good amount of anxiety over the new regulation.