Can foreigners buy property in Bali?
Foreigners can buy property by setting up a PT PMA. The company is necessary as it is the best way for a foreigner to acquire land, a house, or an apartment in Indonesia. Another option for foreigners is acquiring property through a leasehold or an Indonesian nominee.
However, it is essential to note that the foreigner does not have complete property ownership when using an Indonesian nominee or leasehold. In this case, the property is legally owned by the Indonesian nominee or the lessor, which poses legal risks.
How to buy property in Bali?
Step 1: Find the right property
When considering buying property in Bali, there are several factors to remember, such as lifestyle needs, proximity to amenities, budget, and investment goals. The easiest way to find a suitable property is by consulting with real estate agents with the right connections and knowledge about the local market.
Step 2: Set up a PT PMA or enter into a leasehold
Once you find a good place, it is best to determine how you would want to buy the property. As mentioned, setting up a PT PMA or entering into a leasehold agreement are the best ways to buy property in Bali.
Option 1) PT PMA
The BKPM (Indonesia Investment Coordinating Board) is the government office where you will go to set up a PT PMA. Overcoming the BKPM’s requirements can be challenging for foreigners buying property in Bali. To overcome these challenges, many opt to use the services of a local agency to set up a PT PMA. The process generally takes about ten weeks and costs around IDR 30 million ($1,950).
Option 2) Leasehold
Locally known as Hak Sewa, Leasehold is a simple and convenient option for foreigners who want to utilize the property for an extended period. However, it is essential to understand that with a leasehold, the property is not owned but rented for an extended period. Typically, leasehold agreements last for 25 to 35.
Step 3: Conduct due diligence
Conducting due diligence in Bali property transactions is crucial to get your money’s worth and avoiding legal problems. Due diligence includes verifying land ownership and validating licenses; wondering how to conduct due diligence? Check out this guide to help you go through the process.
Step 4: Finalizing the sale
Once you are satisfied that all documents are legit, it is time to close the deal and finally own a property in Bali. Usually denominating as a sales purchase agreement, the contract will be signed and notarized. The sale would also mean payment of the sale price or down payment as well as the necessary taxes.
Step 5: Enter the development phase
Finally, it is time to enter your Bali property’s development phase. The development and construction phase requires thorough planning and preparation. Knowing how to build a villa in Bali, apartment, or office space is crucial to earning back your investment.
Need help buying property in Bali? We’re here to guide you!
Buying property in Bali as a foreigner can be a challenging process, with specific legal requirements, land titles, and ownership structures to navigate. Our team of experts is here to simplify the journey, from finding the right property to ensuring compliance with Indonesian property laws. Whether you need assistance with the full process or specific steps, we provide tailored support to help you make informed decisions. Leave your details below, and we’ll reach out to assist you, or email us directly at [email protected] for personalized advice.
Frequently Asked Questions (FAQs)
How much does a house cost in Bali?
The average price is IDR 14.5 million ($943) per square meter, while the average rent price is IDR 84 million ($5,460). The gross rental yield on houses in Bali is 43,4%.
Is it worth buying property in Bali?
Yes, mainly because of the increasing interest in the real estate market caused by the influx of tourists and digital nomads.
Is Bali affordable to live in?
Yes, many ex-pats find Bali affordable. A single person can live in Bali for only IDR 4 million ($260).