Can foreigners build a villa in Bali?
Yes, a foreigner can build a villa in Bali. It is possible by having the appropriate land certificates, particularly a Hak Guna Bangunan (HGB) and a building permit known as Persetujuan Bangunan Gedung (PBG).
How to build a villa in Bali: 5-step guide
Step 1: Find the best location
When constructing a villa in Bali, its location is one of the primary factors that affect its profitability. While the island offers various landscapes, you should consider its accessibility to amenities and the natural surroundings. Consulting with a local real estate agent would make this process much easier, as they have the expertise and local knowledge to help you find the perfect spot for your dream villa.
Step 2: Establish a PT PMA
PT PMAs are limited liability companies in Indonesia where foreigners can conduct business and own property. Establishing a PT PMA makes it easier for foreigners to build a villa in Bali since ownership requirements are less stringent than for foreign individuals.
Step 3: Obtain the necessary documents
Once you have determined where you want your villa, obtaining the necessary documents is a critical step in building a Bali villa. Two essential documents you’ll need to secure are the HGB and the PBG permits. To obtain these permits, you must submit a comprehensive set of documents, including your land certificate, villa design plans, and other legal documents.
It is best with the help of local real estate agents and lawyers. Obtaining these permits may seem daunting, but it is a crucial step in the villa construction process that ensures your investment is legal and compliant with local regulations.
Step 4: Making a villa layout
Before beginning construction, one can never go wrong by making a solid layout plan of how the villa should look like. It can save loads of time, money, and headaches. With a reputable architect creating a well-thought-out villa design, you can ensure you realize the property’s vision and utilize the space effectively.
Step 5: Hire contractors and project managers
It is difficult for a foreigner to personally source laborers and materials, especially if you are still unfamiliar with local regulations and the Balinese culture. Hiring professional contractors and project managers will make it much more straightforward. They can provide valuable assistance in overseeing the project and ensuring it stays on track, within budget, and completed within a reasonable timeframe.
How much does it cost to build a villa in Bali?
Many factors influence how much you should set aside for construction costs for a Bali villa. Its size, the number of floors, design, and materials are included. If you want an estimate of construction costs, check out this guide.
Do you want to have a quick estimate of construction costs? The calculator below lets you quickly estimate the average costs of building a villa or house in Bali.
Planning to build a villa in Bali? Let us guide you!
Building a villa in Bali is an exciting journey, but it involves navigating legal requirements, finding reliable contractors, and managing construction costs. Without proper guidance, the process can be overwhelming. Our team of experts specializes in helping clients bring their dream villa to life, ensuring a smooth and hassle-free experience. You can email us directly at [email protected] for professional advice.
Valuable insights and practical advice, distilled from years of expertise and real-world experience.
Frequently Asked Questions (FAQs)
How much does a villa cost to build in Bali?
Construction costs depend on a lot of factors. However, estimates provide that it could range from IDR 7.6 million ($479) to IDR 22.9 million ($1,443) per square meter.
Are villas in Bali profitable?
Well-managed Bali villas remain profitable because of the increasing number of tourists and digital nomads on the island.
How much is property tax in Bali?
Property tax in Indonesia, also known as Pajak Bumi dan Bangunan (PBB), depends on the property’s assessed value. Property tax rates are 0.01% to 0.30% of the property’s value.
