Can a Foreigner Buy Property in Bali?
Foreigners are prohibited from directly purchasing land in Bali, as Indonesia’s Land Law (1960) grants freehold ownership rights (Hak Milik) only to Indonesian citizens. However, there are several legal methods that allow safe property investment:
1. Long-term lease (Leasehold) – The most popular ownership option. It allows leasing land or property for 25-30 years with an option to extend. This is an excellent choice for those who want to live in Bali or generate rental income.
2. Ownership through a PT PMA (foreign company) – Setting up a foreign-owned company in Indonesia allows you to acquire land under the Hak Guna Bangunan (HGB) title with ownership rights for up to 80 years.
3. Nominee Agreement – A method where the property is registered under a trusted local citizen’s name with legal agreements in place. However, this method carries risks as the nominee remains the official owner
Which Option to Choose?
If your goal is investment and renting out the property, the best choices are long-term leasehold or setting up a PT PMA. If you are purchasing property for personal use, Leasehold remains the simplest and safest option.
The Property Purchase Process in Bali
1. Selecting a property – Market research, choosing a villa or apartment based on location, infrastructure, and potential value growth.
2. Document verification – Ensuring that the land is not in a protected area and has no legal restrictions.
3. Signing the lease or purchasing through PT PMA – The transaction is processed by a notary and registered with the land department.
4. Payment and obtaining ownership rights – After payment and registration, the buyer receives a Lease Agreement (Leasehold) or Hak Guna Bangunan (HGB).
Conclusion
Buying property in Bali as a foreigner is possible if you understand the laws and approach the process wisely. The key factors are choosing the right ownership scheme, conducting a legal due diligence, and seeking professional assistance. If you are considering investing in real estate in Bali, now is the perfect time to explore the market and find the right opportunity!
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