THE #1 QUESTION BUYERS ASK
CAN FOREIGNERS OWN PROPERTY IN BALI?
Short answer: yes — just not through freehold title. Indonesian law reserves full freehold ownership (Hak Milik) for Indonesian citizens. But foreigners regularly and legally control Bali property through leasehold, Hak Pakai, or a PT PMA company — all explained below.
Foreigners can't hold freehold — but these structures make ownership possible.
Freehold Villa in Bali (Hak Milik): What Foreign Buyers Need to Know
The strongest title in Indonesia — reserved for citizens. Not available to foreigners.
Leasehold Villa in Bali (Hak Sewa)
Fixed-term lease, usually 25–30 years and extendable. Tradeable, and the most common route for foreigners to buy property in Bali.
Right to Use (Hak Pakai) for Foreign Property Buyers
Registered right to use land, up to 30 years, if you meet residency requirements.
PT PMA (Foreign-Owned Company) for Property Investment in Bali
Foreign-owned company holding land rights in its own name. Best for commercial or rental operations.
No single "best" structure — it depends on your goals. Get proper legal advice before committing.
WHAT TO EXPECT
HOW TO BUY A VILLA IN BALI: STEP-BY-STEP PROCESS
1
Define what you're looking for
Budget, location, and whether it's a personal home, an investment, or both — this shapes every decision after it. Browse villas for sale or land for sale to get a feel for what's out there.
2
Create an Account and Shortlist Villas to Buy in Bali
Once something catches your eye, create an account to save it to a wishlist — useful once you're comparing several villas at once.
3
Book a Villa Viewing in Bali
See the property in person or arrange a video walkthrough if you're not in Bali yet. This is also when you'll start working with your agent on next steps.
4
Sign the PPJB and Pay Your Deposit
The PPJB is a preliminary agreement that locks in the price and terms. Alongside it, you pay a deposit — usually 10% — to take the property off the market while the rest of the paperwork is arranged.
5
Administrative Verifications
Before any money changes hands for real, the property gets checked: that the seller actually owns it, that there's no debt attached, that the land is zoned for what you intend, and that the physical boundaries match the paperwork. Skipping this is how people lose money in property deals, anywhere in the world.
6
Set Up Your Ownership Structure
Leasehold, Hak Pakai, or PT PMA — whichever route fits your goals (see ownership types above) gets formally set up here, sometimes with additional registration steps.
7
Sign the Final Deed (AJB) with the Notary
The AJB is the final deed of sale. It's signed in front of a notary — a neutral, licensed official who prepares and witnesses the transfer for both sides, rather than a private lawyer representing just one party.
8
Register the Transfer
The notary registers the new rights with the land office, which is what formally puts the property under your name, your company, or your lease agreement — whichever structure you chose.
9
Take Possession
It's yours — live in it, rent it out, or renovate it.
Typically a few weeks to a couple of months, start to finish — longer if a new company or structure needs to be set up first.
BUDGETING
HOW MUCH DOES IT COST TO BUY A VILLA IN BALI?
FREEHOLD
Hak Milik is reserved for Indonesian citizens. Foreigners generally use a leasehold, Hak Pakai or a PT PMA.
BPHTB: land acquisition duty
The buyer pays up to 5% of the transaction value (sale price or assessed value, whichever is higher), after a tax-free threshold.
Notary and administrative fees
Covers document preparation, verification and registration.
Annual. Rate set by each local government, capped at 0.5% of the government-assessed value (NJOP) after a tax-free threshold.
PPh: income tax on the sale
Paid by the seller, around 2.5% of the sale value.
Applies if you rent out the villa: a final tax of 10% of gross rent for Indonesian tax residents (more than 183 days a year), 20% for non-residents, sometimes reduced by a tax treaty. An NPWP (Indonesian tax number) is generally needed.
LEASEHOLD
Notary and administrative fees
Covers document preparation, verification and registration.
Annual. Rate set by each local government, capped at 0.5% of the government-assessed value (NJOP) after a tax-free threshold.
Applies if you rent out the villa: a final tax of 10% of gross rent for Indonesian tax residents (more than 183 days a year), 20% for non-residents, sometimes reduced by a tax treaty. An NPWP (Indonesian tax number) is generally needed.
Final income tax (PPh) of 10% on the gross lease value, borne by the lessor, i.e. the seller.
None of these numbers should be treated as final — Indonesian property tax rules are regionally administered and do shift, so this is a starting point for the conversation with your notary, not a substitute for it.