Do you want to buy real estate property in Nusa Penida or Nusa Lembongan? Both are two stunning islands located off the coast of Bali, Indonesia, offering some of the region’s most beautiful landscapes and pristine beaches. The islands are becoming increasingly popular among tourists and investors alike, and many people dream of owning a villa in this tropical paradise.
Foreigners looking to invest in real estate in Nusa Penida or Nusa Lembongan may face challenges navigating local laws and regulations. We provide a comprehensive guide to help foreigners understand how to buy real estate property, such as a villa, in Nusa Penida and Nusa Lembongan.
Can a foreigner buy real estate in Nusa Penida or Lembongan?
Foreigners can buy real estate in Nusa Penida and Nusa Lembongan. Both islands are located close to Bali and are visited by many tourists. Many of them dream of owning a piece of land or a villa on Nusa Penida or Nusa Lembongan, and they can do so. It needs to be said that buying real estate in Indonesia as a foreigner is not easy, but there are several ways to do so.
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Real estate investment in Bali
The laws and regulations that apply to Nusa Penida and Nusa Lembongan also apply to other regions and villages in Bali. It is recommended to research real estate in several regions and villages before making any investment.
Different kinds of property ownership
There are three types of property ownership in Indonesia, including Hak Milik (Right to Own), Hak Pakai (Right to Use), and Hak Guna Bangunan (Right to Build). Foreigners cannot obtain Hak Milik but can establish a PT PMA instead. This PT PMA, a legal entity, can obtain Hak Pakai and Hak Guna Bangunan.
Working with a reliable local real estate agent and a legal professional with expertise in Indonesian real estate regulations is advisable. They can help you obtain the right visa, establish the PT PMA, get the right paperwork, and find land or property that meets your needs.
How to buy a villa in Nusa Penida or Nusa Lembongan?
There are three ways foreigners can buy real estate property in Nusa Penida and Nusa Lembongan:
- Leasehold: Under a leasehold title, foreigners can lease property for a long term, mostly 25 years. It is important to say that the foreigner doesn’t own the property but is renting it for a certain period. Still, leaseholds can be an interesting investment method in Indonesian real estate.
- Indonesian nominee: Foreigners can use an Indonesian nominee to buy land registered under the nominee’s name. However, it’s important 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 secure and popular way for foreign investors to own land and property in Nusa Penida or Lembongan. This option provides greater protection and control over the investment.
Always seek advice from a reputable real estate agency and legal professional with expertise in Indonesian real estate. This is essential to ensure a successful transaction and investment.
Buy real estate with a PT PMA
Foreigners can buy Nusa Penida or Lembongan real estate through a PT PMA. This legal entity enables them to buy and own property with titles such as Hak Pakai and Hak Guna Bangunan. With a PT PMA, foreigners can invest in the Indonesian real estate market and do business.
A PT PMA also offers foreign investors the option to apply for residency permits, such as KITAS. With this visa, foreigners can stay in Indonesia for up to 24 months.
6 steps to buy real estate in Bali
You can buy land or real estate property in Nusa Penida or Nusa Lembongan by following these six steps:
- Set up a PT PMA with the help of a notary, accountant, or visa agency.
- Obtain the property certificate from the Indonesian National Land Office (BPN).
- Provide proof of payment and settle the payment.
- Verify that the requirements for Hak Guna Bangunan or Hak Pakai are met.
- Request the building approval (PBG) to obtain the right to build.
- The BPN will issue the property certificate under your PT PMA.
Real estate prices in Nusa Penida
The prices of real estate property in Nusa Penida and Nusa Lembongan strongly vary, depending on the kind of property and exact location. The table below shows an overview of the average prices and costs.
|Average buy price||Average price/m2||Average rent price|
|House||IDR 300 million ($19,500)||IDR 10 million ($650)||IDR 100 million ($6,500)|
|Land||IDR 100 million ($6,500)||IDR 2.5 million ($163)||–|
Why should you buy real estate in Nusa Penida?
There are several reasons to buy real estate in Nusa Penida and/or Nusa Lembongan. Both islands offer some of the region’s most beautiful and unspoiled natural landscapes, with pristine beaches, crystal-clear waters, and stunning cliff formations that attract visitors worldwide. This makes them increasingly popular among tourists and investors looking for a peaceful and relaxing tropical escape.
Besides, both islands are still relatively undeveloped compared to other popular tourist destinations in Bali, so property prices are still relatively low. This presents an opportunity for investors to buy property at a lower price and benefit from potential appreciation in value over time.
Nusa Penida and Nusa Lembongan are close to Bali, one of Southeast Asia’s most visited tourist destinations. This makes them an attractive location for real estate investment, as they offer easy access to Bali’s tourism infrastructure, which includes many resorts, restaurants, and tourist attractions.
Are you interested in buying a villa or house in Nusa Penida or Lembongan?
There are many reasons to buy a piece of land, a nice townhouse, or a luxury villa in Nusa Penida or Nusa Lembongan. Investing in the Indonesian real estate market is attractive but challenging. Because of that, it is important to always seek advice and help from a notable local real estate agency and legal professional. They can help you meet the legal requirements, set up a PT PMA, apply for licenses, sign the right paperwork, fulfill tax obligations, and find land or property that meets your needs and requirements.
Get help with buying property in Nusa Penida or Lembongan
Frequently Asked Questions (FAQs)
Can a foreigner buy property in Nusa Penida?
Yes, a foreigner can buy property in Nusa Penida. They can also do so in Nusa Lembongan.
Is buying a villa in Nusa Penida a good investment?
Buying a villa in Nusa Penida could be a good investment as the island is popular amongst foreign and domestic tourists. There is a lot of potential to earn money by renting out a villa on the popular islands close to Bali.
How much does a villa in Nusa Penida cost?
The price of a villa in Nusa Penida can range from around IDR 300 million ($19,500) to IDR 10 billion ($650,000).