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)
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.
Registered right to use land, up to 30 years, if you meet residency requirements.
PT PMA (Foreign-Owned Company)
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
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
Due Diligence Before Buying
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.
5
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 5 to 10% — to take the property off the market while the rest of the paperwork is arranged.
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?
Beyond the purchase price, budget for these — confirm exact figures with a notary.
BPHTB — Land and Building Acquisition Duty
Buyer pays up to 5% of the transaction value. Usually skipped on leasehold.
Notary and Administrative Fees
Covers document prep, verification, and registration.
PBB — Annual Land and Building Tax
Yearly, roughly 0.1–0.5% of the government-assessed value.
Paid by the seller — roughly 2.5% of the sale value.
Applies if you rent the villa out, based on your residency status. You'll typically need an NPWP (Indonesian tax number) to register.
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.