What is Freehold?
Freehold is full and indefinite ownership of a property. The owner has complete rights to the asset and the land, including selling, inheriting, or renting it out.
But there's a catch!
By law, foreigners cannot own land in Bali under freehold. This option is only available to Indonesian citizens. However, investors have found workarounds, such as purchasing through a local nominee or setting up a PT PMA (a foreign-owned company that can legally own property).
Disadvantages of Freehold for Foreigners:
- Requires structuring through a local citizen or legal entity.
- Risks associated with nominee ownership.
- Higher land prices.
Advantages:
Full ownership rights.
Easier resale process.
Potential for high market value appreciation.
What is Leasehold?
Leasehold is long-term land lease, usually 25-30 years, with renewal options up to 80-100 years. In this case, the owner does not buy the land but gains the right to use and rent out the property.
Why is Leasehold the Best Option for Foreigners?
100% Legal: Available to non-residents without intermediaries.
More Affordable: Leasehold costs 30-50% less than freehold.
Flexible: The property can be rented out to generate income.
Renewable: Most contracts include extension clauses.
Disadvantages:
Limited ownership period.
Resale conditions may not always be favorable.
Requires contract verification (to avoid renewal issues).
Which Option is Better?
For investment and business: Leasehold is the best choice. You can legally own property, rent it out, and receive stable income.
For long-term residence: If you plan to live in Bali for decades, you can consider a PT PMA structure or a well-structured leasehold agreement with a renewal option.
How to Buy Property Safely in Bali?
Verify the seller – Ensure the land and property are legally documented.
Sign an official contract – Leasehold must be registered and include renewal terms.
Work with reputable legal experts – Make sure your ownership rights are protected.
Conclusion
For foreigners in Bali, leasehold is the simplest and safest option for purchasing real estate. If you're interested in verified investment properties, our company can help you find the best villas, apartments, and commercial properties on the island.
Contact us to receive a curated selection of high-income properties with full legal protection!
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ISIA is your guide in the world of real estate and investments. Our expert team offers a full range of services, including market analysis and finding favorable conditions for successful investments. We provide legal support and documentation, ensuring legal protection for your investments. With ISIA, you get not only access to exclusive offers and property management but also the opportunity to minimize risks and optimize tax obligations. With us, you'll create a diversified portfolio of investments for stability and profitability. ISIA is your partner in achieving financial success through real estate investments.
