Buying Property in Bali as a Foreigner
Yes, foreigners can buy property in Bali — with the right legal structure. Here's everything you need to know about ownership options, the buying process, and avoiding common pitfalls.
Can foreigners buy property in Bali?
Yes — but not freehold. Under Indonesian law, foreigners cannot hold freehold (Hak Milik) title. However, there are secure legal structures that give foreign buyers effective, long-term ownership rights: leasehold (Hak Sewa), Right to Use (Hak Pakai), and PMA company ownership. Each has different costs, durations, and suitability depending on your situation.
Ownership Options for Foreigners
Choose the structure that matches your timeline, investment goals, and residency status.
Leasehold — Hak Sewa
Most Common- Typical term: 25–30 years with renewal option (total 50–80+ years)
- Available to all foreign nationals — no residency requirement
- Lower purchase price than comparable freehold
- Full use, rental, and resale rights during lease term
- Risk: landlord must agree to renewal — use a reputable notary
Right to Use — Hak Pakai
For Residents- Available to foreigners with a valid KITAS or married to an Indonesian citizen
- Stronger rights than leasehold — closer to true ownership
- Term: 30 years, renewable up to 80 years total
- Can be used for primary residence
- Not available to non-resident foreign investors
PMA Company Ownership
For Investors- Set up a foreign-owned Indonesian company (PT PMA)
- Company can hold property on a Right to Build (HGB) or Right to Use basis
- Ideal for investors purchasing 2+ properties or running a villa business
- Additional setup costs (~$3,000–$6,000 USD)
- Enables freehold-equivalent control via business entity
⚠ Avoid: Nominee Structure
Some buyers use an Indonesian national to hold freehold title on their behalf (a "nominee"). This is legally risky: there is no Indonesian law that enforces a nominee agreement, and disputes can result in losing the property entirely. We recommend using leasehold or PMA structures instead.
Step-by-Step: How to Buy Property in Bali
Define your budget & goals
Are you buying to live in, rent out short-term, or hold as a long-term investment? Your goal determines the ideal location, property type, and ownership structure.
Choose a location
Canggu for digital nomads and high rental yield; Ubud for culture and wellness; Uluwatu for luxury surf lifestyle; Seminyak for established tourist zones.
Select an ownership structure
Work with your agent and a qualified Indonesian notary (PPAT) to choose between leasehold, Hak Pakai, or PMA. Never sign without legal advice.
Conduct due diligence
Verify the land certificate (SHM or SHGB), check for encumbrances, confirm zoning permits villa/commercial use, and review the seller's identity.
Sign the sale & purchase agreement
A binding Perjanjian Pengikatan Jual Beli (PPJB) is signed before a notary. A deposit (typically 10%) is paid at this stage.
Complete the transaction
Final payment, transfer of title, and registration at the National Land Agency (BPN). Taxes paid: BPHTB (5% of NJOP) by buyer, PPh (2.5% of sale value) by seller.
Ready to Buy Property in Bali?
Our team guides foreign buyers through the entire process — from property search to legal completion. No surprises, no nominee risk.