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Property on Bali: Find and buy your dream villa in 5 steps

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

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 on 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 on Bali, which can be done through a PT PMA that can own leasehold or freehold property. It’s also possible to purchase leasehold property on Bali as an individual.

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

If you buy through a PT PMA, you must set up a PT PMA 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, which you need to build on the land or use the property.

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 to 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.

Get help with buying property on Bali as a foreigner

Buying a house in Bali can be complex, especially for a foreigner. That’s why it’s crucial to engage the services of a reputable Bali real estate agent. They can provide invaluable advice, handle all the administrative tasks, help you negotiate better prices, and ensure you make a legally compliant and safe investment.

Get help with buying property in Bali

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


While buying property on Bali as a foreigner comes with its challenges, it’s certainly not impossible. By understanding the rules on foreigners owning property in Bali and seeking professional help, you can navigate the legal landscape successfully. Whether looking for a luxury villa for sale in Bali, a small house to buy, or land for sale in Bali, you’ll find that investing in Bali’s real estate market can be a rewarding experience. With the right approach, your dream of owning a home in this tropical paradise can become a reality.

Frequently Asked Questions (FAQs)

Can foreigners buy property on Bali?

Yes, foreigners can buy property on Bali, but cannot gain absolute ownership. They can buy property on 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 on 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 on 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 locations, can be expensive.

What is the price of property in Bali?

The price of property on Bali varies widely. For example, a modest house could start from around IDR 800,000 ($52), while a luxury villa could cost upwards of IDR 10 billion ($650,000) 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 to buy a villa in Bali can range significantly. Finding a smaller, more basic villa at around IDR 500,000 ($32.50) 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.

Bali property expertise call

Our Bali property expert call is here to help you address all your queries regarding buying property in Bali. We will cover all the essential topics, from land titles and visa requirements to local rules and regulations. We even guide you through the buying and building processes and offer insights into investment potentials and costs. Plus, we’ll recommend the best agents and agencies in Bali to help you make the most of your investment.

The best part? You can tailor the session to your specific needs by asking any questions you have.

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Your Comprehensive Guide to Buying Property in Bali

Get help with buying property in Bali

Free e-book
Your Comprehensive Guide to Buying Property in Bali

Get help with buying property in Bali

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