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Own property in Bali

Buying property in Bali: a step-by-step guide

villa in bali with swimingpool

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Buying property in Bali is an aspiration for many, especially those who have been to the island. While real estate costs escalate worldwide, buying an affordable property in Bali remains an excellent option for investors.  With its reasonable cost of living averaging from $720 to $2.600,  the quality of life on the island remains optimistic. Finding the best properties is critical to doing a good business. This article will provide a step-by-step guide on how to buy property in Bali. 

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.

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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 45 million ($3.000).

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. 

how to buying property in bali

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. 

Do you want to build property in Bali?

When you let a real estate agent in Bali assist you, you save time and avoid headaches. Imagine no more hassle in finding the right buyers or tenants, handling paperwork, or negotiating deals. The real estate agent takes property viewings, ensures smooth transactions, and helps you get the best value for your property. You can also seek assistance for just one specific aspect of the selling or renting process.

Interested? Make your real estate journey smoother, and consult with our expert real estate agent to discover the possibilities for your villa in Bali.

Get help with building property in Bali

Leave your name and email below – Our property expert in Bali will reach out to explain more on this topic and answer all your questions.


In conclusion, buying a property in Bali can be a worthwhile investment and a dream come true for many. However, it is essential to do your due diligence and understand the legal procedures and regulations before purchasing. Working with a reliable and experienced agency can help simplify the process and protect your interests. Remember the various taxes and fees associated with buying and owning a property in Bali. Owning a property in Bali can be a smooth and rewarding experience with proper planning and guidance.

Frequently Asked Questions (FAQs)

How much does a house cost in Bali?

The average price is IDR 14.5 million ($967) per square meter, while the average rent price is IDR 84 million ($5.607). 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 $550. 

Your guide to buying property in Bali

Written by Monisa Ruth Simon

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Your guide to buying property in Bali

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Leave your name and email below – Our property expert in Bali will reach out to explain more on this topic and answer all your questions.