Compliance with local laws and regulations is part of the due diligence process when acquiring property in Bali. As a tourist hotspot, real estate laws are pretty complex, and one aspect of which you must be diligent is zoning laws. While foreign investors may be most familiar with special economic zones, there are other zoning classifications with which you ought to be knowledgeable. This article aims to provide an overview of the land zoning in Bali.
What is land zoning in Bali?
Land zoning refers to the government’s classification of a piece of land based on its permitted use and imposed restrictions. In Bali, zoning laws are considered one of the most crucial regulations for buying or utilizing land in Bali. Hence, it is essential to understand and follow Bali’s rules on land zoning before investing in any land or property.
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7 essential types of land zoning in Bali
Land in Bali is categorized into different types of land zones. It’s essential to understand the land zoning in Bali and adhere to Bali’s rules and regulations on land zoning. Below are the most important land zones you should be aware of.
1. Green zone
Green zones are for agricultural activities. Bali has three green zones: Ubud, Nusa Dua, and Sanur. These areas receive special attention to encourage more tourists to visit the island by spotlighting Bali’s natural resources. Therefore, you cannot build structures like villas in green zones.
2. Yellow zone
Yellow zones in Bali designated for agriculture can be converted to residential use at the local land office.
3. Red zone
Red zones are the friendliest for commercial activities since the construction of buildings is allowed. This zone allows trade, service, and industrial establishments, such as shopping centers, markets, tourist accommodations, and food and beverage establishments.
4. Residential zone
Residential zones are properties where you can construct buildings for occupation or dwelling. It includes houses and apartments.
5. Trade and service zone
Trade and service zones allow commercial activities like shopping centers, markets, tourist accommodations, and food and beverage establishments. It’s generally inside a red zone where one can construct buildings.
6. Special Economic Zones
Special Economic Zones (SEZ) refer to specific areas allocated to attract foreign investments to promote economic development. Businesses found in the SEZ enjoy certain privileges and tax incentives.
7. Conservation zone
As an island known for its natural beauty, it would be no surprise that some areas in Bali are protected. Conservation zones are areas where natural or cultural resources are protected and prevent commercial activities. An example of a conservation zone in Bali is Benoa Bay.
How to check land zoning in Bali?
Visit Bali’s National Land Agency to determine the General Spatial Layout or Rencana Tata Ruang Wilayah (RTRW), which determines the land zoning in Bali. Ensuring compliance with zoning laws is best handled with the help of lawyers equipped with the knowledge of due diligence.
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Land zoning laws in Bali are crucial for maintaining the island’s natural beauty. These laws help regulate land use and prevent overdevelopment, ensuring that Bali remains an attractive tourist destination and a sustainable home for its residents. Suppose you want to invest in real estate in Bali. In that case, it is essential to seek the advice and services of reputable real estate agencies with extensive knowledge of the local zoning laws and regulations.
Frequently Asked Questions (FAQs)
Can you build in a green zone in Bali?
It’s not allowed to build in green zones in Bali, as these zones are intended for agricultural activities. Hence, building a villa or any other type of construction here is highly prohibited according to Bali’s rules on land zoning.
What are zoning regulations in Bali?
The zoning regulations in Bali are rules on the classification of a piece of land based on its permitted use and imposed restrictions. Compliance with the land zoning regulations in Bali includes knowing whether buildings can be constructed on land depending on whether it is a residential, commercial, or green zone. It also includes obtaining the proper building permit when allowed.
Can I build a villa in Bali?
Foreigners can build a villa in Bali by obtaining the proper permit, such as the PBG and Hak Guna Bangunan (HGB). However, building a villa is prohibited if the land in Bali is located in a green zone.