Foreigners interested in buying real estate property in Uluwatu, Bali, will find this guide useful for understanding how to do it. Uluwatu is a beautiful area located in the southern part of Bali, Indonesia. It is famous for its stunning beaches, surfing spots, and cliffside views overlooking the Indian Ocean. Uluwatu is also home to the iconic Uluwatu Temple, a significant cultural and religious landmark for the Balinese people. The temple is situated on a cliff-top and offers breathtaking ocean views.
In recent years, Uluwatu has become a popular destination for tourists and expats looking to invest in Bali’s real estate market. With its booming tourism industry and growing infrastructure, Uluwatu presents many opportunities for property investment.
This guide will discuss the legal requirements and procedures involved in buying a property as a foreigner in Indonesia and tips for finding the right property and working with a reputable real estate agent. Whether you’re looking to invest in a vacation home or a rental property, this guide will provide valuable insights into buying real estate in Uluwatu.
Is it possible for foreigners to invest in real estate property in Uluwatu?
Yes, it is possible for foreigners to invest in real estate property in Uluwatu, Bali. Whether you want to purchase a villa, townhouse, commercial property, or land, there are several options available for foreign investors. However, buying real estate in Indonesia as a foreigner can be a complex process, and there are specific regulations that you must follow.
Real estate investment in Bali
The regulations that apply to Uluwatu also apply to other regions, towns, and villages in Bali. However, there might be differences in rules and regulations between certain provinces and cities in Indonesia. If you plan to buy property on another island or city, conducting extensive research on local laws and regulations is essential.
Property ownership options
Indonesia offers three kinds of property ownership, which also apply to Uluwatu. These are Hak Milik (Right to Own), Hak Pakai (Right to Use), and Hak Guna Bangunan (Right to Build). The highest property ownership title, Hak Milik, can only be obtained by Indonesian nationals.
Foreigners can obtain Hak Pakai and Hak Guna Bangunan titles. However, they must establish a legal entity in Indonesia before acquiring these titles. One of the legal entities available to foreign investors is PT PMA, a foreign-owned company that used to invest in Indonesian real estate. Working with a reputable real estate agent and a legal professional with expertise in Indonesian real estate regulations is advisable to ensure a smooth and successful investment.
Get help with buying property in Uluwatu
What are the options available to foreigners looking to invest in real estate in Uluwatu?
Foreigners interested in investing in real estate property in Uluwatu, Bali, have several options available:
- Leasehold: Foreigners can lease land or property in Uluwatu. Under a leasehold agreement, the foreigner is not the property owner, but instead, they rent the property for a set period, typically 25 or 35 years. It is possible to renew the lease after the initial period.
- Indonesian representative: As Indonesian nationals can purchase real estate property under Hak Milik, foreigners can use an Indonesian nominee to buy property. However, it is crucial to note that the property will legally belong to the Indonesian national, and this option may have significant legal implications and risks.
- Foreign-owned company (PT PMA): The safest and most popular way foreigners invest in Indonesian real estate is by setting up a foreign-owned company, or PT PMA. This legal entity allows foreign investors to invest foreign capital in Indonesian real estate and provides more protection and flexibility than other options.
Purchase real estate in Uluwatu with a PT PMA
PT PMA refers to a foreign-owned company, or Perseroan Terbatas Penanaman Modal Asing, that enables foreign investors to invest capital in Indonesia. Through a PT PMA, foreigners can establish a business and generate income in Indonesia. This legal entity allows foreigners to buy real estate in Uluwatu with titles such as Hak Pakai and build real estate with Hak Guna Bangunan.
Foreigners who own a PT PMA can apply for a residency permit, such as a Working KITAS or Investor KITAS, which enables them to stay in Indonesia for up to 24 months. This option provides a secure and legal way for foreigners to invest in Uluwatu’s real estate market, ensuring compliance with local laws and regulations.
6 steps to buy property in Bali
You can buy real estate in Bali by following these six steps:
- Establish a PT PMA at a notary, accountant, or visa agency.
- Request the certificate for the property from the Indonesian National Land Office (BPN).
- Settle the payment and provide proof of payment.
- Provide proof that the conditions for Hak Guna Bangunan or Hak Pakai are met.
- Request the building approval (PGB) to acquire the right to build.
- BPN will issue the property certificate under the name of your PT PMA.
Real estate costs and prices in Uluwatu
You see an overview of the real estate prices in Uluwatu in the table below.
|Average buy price||Average price/sqm.||Average rent price|
|House||IDR 500 million ($32,500)||IDR 10 million ($650)||IDR 20 million ($1,300)|
|Land||IDR 279 million ($18,135)||IDR 1.4 million ($91)||–|
Why should you invest in real estate in Uluwatu?
For several reasons, investing in real estate in Uluwatu can be an attractive option. Uluwatu is located in the southern part of Bali and is known for its beautiful beaches, cultural attractions, and luxury resorts. As the tourism industry grows in Bali, Uluwatu has become a popular destination for tourists and investors.
One of the main reasons to invest in real estate in Uluwatu is the potential for capital appreciation. The area has seen significant growth in property prices over the past few years, and this trend is expected to continue as more investors enter the market.
Another reason to invest in Uluwatu is the strong demand for rental properties. Many tourists and expats seek high-quality accommodations that blend luxury and local culture. By investing in a rental property in Uluwatu, you can generate passive income and benefit from the market’s long-term growth potential.
Uluwatu also offers a lower cost of living compared to some of the more touristy areas in Bali, making it an attractive option for budget-conscious investors. The area has a strong expat community and offers a relaxed, laid-back lifestyle that is appealing to many people.
Are you interested in buying a villa or land in Uluwatu?
If you’re interested in buying property in Uluwatu or another village in Bali, working with a reputable real estate agent who can guide you through the process is important. Buying real estate in Indonesia can be challenging for foreigners, but with the right support and guidance, it’s possible to navigate the process successfully. A real estate agent can help you establish a PT PMA, apply for the necessary licenses and permits, and ensure that all taxes are paid correctly.
Get help with buying property in Uluwatu
Frequently Asked Questions (FAQ)
Can a foreigner buy a house in Uluwatu?
Yes. A foreigner can purchase a house in Uluwatu through a leasehold, an Indonesian nominee, or a PT PMA (a foreign-owned company). The PT PMA option is the most secure way for foreigners to buy real estate in Uluwatu as it is a legal entity that can completely own the property.
What if I am interested in buying a property in Uluwatu?
You can seek assistance from a real estate agency in Bali to purchase property in Uluwatu. Such an agency can guide you through setting up a PT PMA, acquiring the necessary licenses, and finding a property that meets your requirements and preferences.
What is the price range for a house in Uluwatu?
The price range of a house in Uluwatu varies depending on various factors. A smaller and basic house in Uluwatu could be available for around IDR 500 million ($32,500), while a more luxurious and bigger house could cost up to IDR 2 billion ($130,000).