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Find and buy your dream villa in Bali: 5 easy steps

Bali is a popular destination for tourists, digital nomads, and retirees. Many dream about owning property in Bali to live there or rent it out and earn a passive income. Indonesia has certain restrictions and regulations regarding foreign property ownership. This article will explain the steps for buying a house, villa, or land in Bali as a foreigner.

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Rules on foreigners owning property in Bali

Foreigners can’t obtain Hak Milik (HM), known as freehold ownership, Indonesia’s highest form of ownership. Instead, foreigners can set up a Perseroan Terbatas Penanaman Modal Asing (PT PMA), a foreign-owned company, and use Hak Guna Bangunan (HGB) and Hak Pakai (HP) to use and construct the property on Bali.

There are three ways foreigners can buy a house in Bali: through an Indonesian nominee (not advised due to legal risks), setting up a PT PMA, or going for a leasehold as a foreign individual. The latter two options are the safest and most legally compliant. Freehold or leasehold through a PT PMA is ideal for foreigners who plan to buy property for rental purposes.

How foreigners can buy property on Bali in 5 steps

Foreigners can buy property in Bali, although they need to follow specific rules and regulations. Here’s a step-by-step guide on how to buy a villa or land in Bali:

Step 1: Understand Indonesian real estate laws

Ensure you understand the rules on foreigners owning property in Bali, as there are specific rules and regulations on property ownership in Indonesia. Once understood, decide how you want to buy property in Bali. You can do this through a PT PMA that can own leasehold or freehold property. It’s also possible to purchase leasehold property in Bali as an individual.

Step 2: Set up a PT PMA (if necessary)

If you buy through a PT PMA, you must set one up in Bali. This will allow you to purchase or lease property in the company’s name, which is particularly beneficial if you plan on generating rental income.

Step 3: Find a property on Bali and conduct due diligence

Choose a property that aligns with your needs, desires, and budget. Be sure to work with a trustworthy real estate agent and do your due diligence to prevent becoming a victim of real estate scams.

Step 4: Sign the agreement and pay the taxes

After finding your dream property, you must handle the legal paperwork and understand your tax obligations. Hiring a tax agent or lawyer to guide you through this process can be highly beneficial.

Step 5: Obtain the necessary land titles and certificates

Upon signing the agreement, you will receive all the required land titles, certifications, and permits, like Hak Guna Bangunan and Hak Pakai, for which you need to own the building on lease land or use the property for residential purposes.

Leasehold Bali

A leasehold agreement in Bali is essentially a long-term rental contract, often valid for 30 years and extendable up to 80 years. The leaseholder can use the property during this time, but the original owner still retains ownership. This structure, known as Hak Sewa or leasehold in Bali, is an excellent option for foreigners looking to buy a villa in Bali for personal or commercial use, given the restrictions around freehold ownership for non-Indonesians.

Where can you find your dream villa for sale in Bali?

When searching for a house to buy, such as a luxury villa in Bali for sale or even more affordable Bali houses for sale, there are numerous resources available online. Bali real estate agencies have listings of properties, from land for sale in Bali to houses for sale. You can also check out social media platforms, property websites, and online forums catering to the Bali property market.

Whether you’re looking for a lavish beachfront villa or a quaint house in the rice fields, from the bustling nightlife of Canggu and Seminyak to the tranquil rice fields of Ubud, there’s a perfect spot for everyone. Always remember to verify all property details and conduct thorough due diligence before making a purchase.

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Frequently Asked Questions (FAQs)

Can foreigners buy property in Bali?

Yes, foreigners can buy property in Bali but cannot gain absolute ownership. They can buy property in Bali as an individual through leasehold agreements, comparable to long-term rentals that can last up to 80 years, or by purchasing through a legal entity such as a PT PMA.

Is it worth buying property in Bali?

Buying property in Bali can be a worthwhile investment, considering its thriving tourism industry and stunning natural beauty. However, it’s essential to understand local real estate laws, work with a reputable real estate agent, and approach the process with due diligence.

Is property expensive in Bali?

The price of property in Bali can vary greatly, depending on factors like location, size, type, and proximity to popular tourist spots. While some properties can be relatively affordable, others, particularly luxury villas in sought-after areas, can be expensive.

What is the price of property in Bali?

The price of property in Bali varies widely. For example, a modest house could start from around IDR 800,000 ($50.40), while a luxury villa could cost upwards of IDR 10 billion ($630,000) or more. Land prices also vary significantly based on location and size.

How much does it cost to buy a villa in Bali?

The cost of buying a villa in Bali can range significantly. Finding a smaller, more basic villa around IDR 500,000 ($31.50) is possible. However, luxury villas in prime locations can cost a lot of money. Size, location, amenities, and proximity to popular tourist areas significantly influence the price.

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