Bali is one of the most desirable locations in the world for property investment. Whether you’re looking for a vacation home, an investment property, or a place to retire, owning real estate in Bali can be a dream come true. However, the process isn’t as straightforward as in many other countries, as Indonesian law places restrictions on foreign ownership.
In this guide, we’ll walk you through the legal structures available to foreigners, the best locations to buy, and key considerations to ensure a smooth transaction.
Can Foreigners Buy Property in Bali?
Indonesian law does not allow foreigners to directly own freehold land (Hak Milik). However, there are legal structures that allow non-Indonesians to acquire property rights:
- Hak Pakai (Right to Use): This allows foreigners to lease land for an extended period, usually up to 80 years.
- Hak Guna Bangunan (Right to Build): This is granted to Indonesian companies, including PT PMA (a foreign-owned company), which allows foreign investors to control land and build on it.
- Leasehold Agreements: Foreigners can lease land for up to 25-30 years, with extensions available.
Best Areas to Buy Property in Bali
Bali has several hotspots for real estate investment, each with its own appeal:
- Canggu – Popular with digital nomads and surfers, Canggu offers high rental yields and modern villas.
- Uluwatu – Known for stunning cliffs and luxury resorts, Uluwatu is an excellent choice for high-end property investments.
- Ubud – If you’re looking for tranquility, lush greenery, and cultural richness, Ubud is ideal.
- Sanur – A family-friendly area with a relaxed atmosphere and beachfront villas.
- Seminyak – A vibrant location with upscale restaurants, nightlife, and boutique villas.
The Buying Process in Bali
- Choose Your Location & Budget – Identify your preferred area and set a budget.
- Engage a Local Notary & Lawyer – Legal professionals will guide you through the transaction.
- Due Diligence & Land Checks – Verify land ownership and zoning regulations.
- Sign a Lease or PT PMA Agreement – Secure your legal rights to the property.
- Finalize the Transaction – Complete the paperwork and transfer funds securely.
Conclusion
Buying property in Bali as a foreigner is possible with the right approach. Whether through leasehold agreements, a PT PMA, or Hak Pakai, you can secure a dream property while staying within legal boundaries. Work with a trusted real estate agency and legal advisors to ensure a smooth and secure transaction.
