Are you looking to buy a villa in Amed, Bali? Amed is a beautiful coastal town in northern Bali that offers a tranquil environment and scenic views. Owning a villa, house, or apartment in Amed is a dream for many people, but buying real estate in a foreign country like Indonesia can be overwhelming, particularly if you are unfamiliar with local laws and regulations.
This article aims to provide a comprehensive guide to help foreigners buy real estate property in Amed, Bali. We will cover everything from understanding legal requirements to finding the right property and completing the transaction to make your dream of owning a property in Bali a reality.
Can foreigners buy real estate property in Amed?
Investing in Bali’s real estate market is a promising opportunity for foreigners, with Amed being a top destination. However, like other areas in Bali, foreign investors must follow regulations when purchasing property in Amed. Understanding the legal requirements and seeking expert advice is essential to ensure a smooth investment.
Although it is challenging, foreigners can purchase real estate property in Amed and other Indonesian cities and regions. However, local laws and regulations make it difficult for foreigners to buy property in Indonesia, so it is important to be aware of these laws and regulations to avoid any legal consequences.
Foreign real estate investments in Bali
Knowing Indonesian rules and regulations when buying property in Amed and other Indonesian cities and regions is crucial. You can research the laws and regulations or seek help and advice from a local real estate agent.
Indonesian property ownership
There are three types of property ownership in Indonesia: Hak Milik (Right to Own), Hak Pakai (Right to Use), and Hak Guna Bangunan (Right to Build).
Hak Milik is only available to Indonesian nationals, which means foreigners cannot fully own property in their name. Instead, they can establish a foreign-owned company called a PT PMA to obtain Hak Pakai and Hak Guna Bangunan and purchase real estate property in Indonesia.
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How to buy real estate property in Amed?
Foreigners who want to purchase real estate property in Amed can do so in three different ways:
- Leasehold: Investing in real estate through leasing property is possible. Through leasehold, the foreigner will not fully own the property but rent it from the Indonesian national holding the freehold title.
- Indonesian nominee: Foreigners can use an Indonesian nominee to buy land registered under the nominee’s name. However, it is essential to consult a legal professional before proceeding due to the legal implications and risks involved.
- Foreign-owned company (PT PMA): Establishing a PT PMA is a popular and secure way for foreign investors to buy land and property in Amed. This option provides greater protection and control over the investment.
Buy a villa in Amed with a PT PMA
To buy real estate as a foreigner in Indonesia, a PT PMA is the most convenient option. PT PMA is a foreign-owned legal entity in Indonesia, allowing the company to purchase a villa in Amed and other areas.
PT PMA is entitled to titles such as Hak Pakai and Hak Guna Bangunan, which are required to buy real estate through PT PMA.
Foreigners can purchase a villa through PT PMA and obtain a KITAS residency permit through a foreign-owned firm. With KITAS, foreigners can stay in Indonesia for two years.
6-step process to buy real estate in Bali
Purchasing real estate in Amed and other Balinese villages involves the following six steps:
- Establish a PT PMA with the help of a notary, accountant, or visa agency.
- Obtain a property certificate from the Indonesian National Land Office (BPN).
- Verify that the Hak Guna Bangunan or Hak Pakai requirements are met and pay for the property.
- Request the building approval (PBG) to have the right to construct.
- The BPN will issue a property certificate under your PT PMA.
- Hire a trusted real estate agency to help you meet legal requirements, including setting up a PT PMA, applying for licenses, and fulfilling tax obligations. The agency can also assist you in finding the ideal property for your needs.
Real estate prices in Amed
Real estate prices in Bali vary widely. Compared to other villages in Bali, purchasing real estate in Amed is inexpensive. The table below shows average real estate prices in Amed.
|Average buy price||Average price/m2||Average rent price|
|House||IDR 500 million ($32,500)||IDR 10 million ($650)||IDR 100 million ($6,500)|
|Land||IDR 200 million ($13,000)||IDR 2.5 million ($163)||–|
Why invest in real estate in Amed?
Investing in real estate in Amed can be smart for several reasons. Amed is a beautiful coastal town located in the eastern part of Bali. It is famous for its crystal-clear waters, pristine beaches, and vibrant marine life. The town is popular among tourists and is growing steadily, making it a great place to invest in real estate.
Real estate prices in Amed are relatively low compared to other regions and villages in Bali, which makes it an affordable investment option. The cost of living in Amed is also lower than in other popular tourist destinations. That makes living here attractive for those looking to retire or live in Bali.
Investing in real estate in Amed can provide long-term appreciation in property value, as the town’s tourism industry is expected to continue growing in the coming years. You could earn a passive income by renting out the property to tourists or long-term tenants by purchasing a property in Amed.
Interested in buying a villa or house in Amed?
Investing in real estate in Amed can be an intelligent decision due to its natural beauty, Bali’s popularity as a tourist destination, the low cost of living, and the potential for long-term property value appreciation.
When contemplating the purchase of a villa or house in Amed, use a reputable real estate agency to assist you in meeting legal requirements, such as creating a PT PMA, obtaining the necessary licenses, meeting tax obligations, and locating the ideal property for your needs.
Get help with buying property in Amed
Frequently Asked Questions (FAQs)
Can foreigners purchase real estate in Amed?
Yes, foreigners can purchase real estate in Amed. They may do so via a leasehold, an Indonesian nominee, or a PT PMA. The most convenient and safest approach is through PT PMA, a foreign-owned corporation.
Is purchasing a villa in Amed a good investment?
Purchasing a villa in Amed might be a sound investment. Real estate prices in the village are lower than in other Bali regions, and an increasing number of tourists are coming to the north of Bali, making it more attractive.
What is the cost of a villa in Amed?
A villa in Amed may cost between IDR 500 million ($32,500) and IDR 10 billion ($650,000), depending on the villa type, location, and other factors.