How foreigners can legally buy property in Bali

Overview: can foreigners own property in Bali?

Yes — but not directly under Hak Milik (freehold), which is reserved for Indonesian citizens. Foreign buyers have three legal, well-established routes to control property in Bali: long-term leasehold (Hak Sewa), right-of-use title (Hak Pakai), and freehold via a foreign-owned company (PT PMA). Which one is right for you depends on how long you want to hold, whether you plan to rent short-term, and whether you want the option to repatriate sale proceeds abroad.

1. Leasehold (Hak Sewa)

The most common route for foreign off-plan buyers. You sign a notarised lease agreement (typically 25–30 years) with the Indonesian landowner, with two contractually guaranteed extensions of 20 years each — for a total effective horizon of 65–70 years. The lease is registered at the local notary (PPAT) and can be freely sold, inherited or gifted to a third party.

• Ownership horizon: 25–30 years + 2×20-year extensions
• Setup cost: 1–2% notary + 10% lease tax (usually seller-paid)
• Best for: villas, holiday homes, single-asset investors
• Rental income: allowed with a Pondok Wisata licence

2. Hak Pakai (Right of Use)

Hak Pakai is a residential title available to foreigners who hold a valid Indonesian residence permit (KITAS or KITAP). It grants a 30-year right of use, extendable by 20 + 30 years for a total of 80 years. The property must be your personal residence and above a minimum price threshold set by regional government (typically IDR 3–5 billion for a house in Bali).

• Ownership horizon: up to 80 years
• Requires: KITAS/KITAP residence permit
• Restriction: personal residence only — no rental business
• Best for: retirees and remote workers relocating to Bali

3. PT PMA — Foreign-Owned Indonesian Company

A PT PMA is a limited-liability Indonesian company with 100% foreign ownership permitted for real estate and hospitality activities. The company itself can hold Hak Guna Bangunan (HGB, building rights) for 30 years extendable to 80, and can operate a licensed villa rental or boutique hotel. Setup takes 4–6 weeks and costs USD 3,000–5,000 all-in.

• Ownership horizon: HGB 30 + 20 + 30 = 80 years
• Business licence: KBLI 55130 (villa rental) or 68110 (real estate)
• Minimum paid-up capital: IDR 10 billion (≈ USD 620k)
• Best for: 2+ properties, rental businesses, and sellers who want USD repatriation

4. Nominee structures — why to avoid them

The 10-step off-plan buying process

1. Shortlist project and request the developer's BKPM licence, IMB (building permit) and land certificate
2. Independent notary (PPAT) runs due diligence on title chain and zoning (ITBZ/PBG)
3. Sign reservation agreement + 10% deposit into developer escrow
4. Notary drafts the leasehold or PT PMA sale-purchase agreement (AJB)
5. Sign AJB at the notary office — both parties present or by power of attorney
6. Milestone payments 20% / 30% / 30% / 10% tied to construction verified by third-party surveyor
7. Handover inspection with punch-list before final payment
8. Notary registers the deed at BPN (National Land Agency) — takes 3–4 months
9. You receive the certified leasehold/HGB certificate in your name
10. Register with the local banjar (village council) and apply for the Pondok Wisata rental licence

Taxes & closing costs

Frequently asked questions