Bali has a magical pull. Its stunning scenery, tropical lifestyle, and friendly people make it a dream destination for many. After falling in love with Bali, it’s only natural to start pondering the idea of having your own little slice of paradise—maybe a beachfront villa or a cozy home nestled among the rice fields. But if you’re not Indonesian, is it really possible to buy property in Bali? Let’s break this topic down in simple, practical terms.
Can You Own Property in Bali as A Foreigner? : The Short Answer
Foreigners cannot directly own land in Bali or anywhere else in Indonesia. The law is clear: only Indonesian citizens can hold a property title for land. But there are a few legal ways for foreigners to invest in property and enjoy a piece of Bali. You just need to know the options and the rules.
Key Property Titles in Indonesia
Understanding the different kinds of property titles in Indonesia is an important step. These are the main ones you’ll hear about:
- Hak Milik (Freehold Title): This is the strongest form of land ownership and only citizens of Indonesia can have it. They can sell, pass on, or use the land as they please.
- Hak Pakai (Right of Use): This lets people—foreigners included, under certain circumstances—use or occupy land for a set period. It is not the same as ownership, but it does grant secure, long-term use.
- Hak Sewa (Leasehold Title): This means renting or leasing the land for a long stretch, such as 25 years, with options to renew.
- Hak Guna Bangunan (Right to Build): Mostly for businesses, this allows a company to build on and use the land for up to 30 years (often renewable).
Let’s talk about the ways foreigners usually go about securing property in Bali.
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The Main Legal Options for Foreigners
1. Leasehold (Hak Sewa)
This is the most common—and the easiest—route for most foreigners. With a leasehold agreement, you can rent land or a property, usually for 20, 30, even up to 50 years. Some contracts include the option to extend for another 20 or 30 years once your first lease ends.
The lease can cover a house, villa, or even just bare land if you want to build. It works a lot like renting an apartment in other countries, but for much longer. When your lease is up, ownership of the property goes back to the original owner unless you both agree to extend.
Leasehold arrangements are quite flexible, and they’re used by many foreigners in Bali who want a holiday home, retirement place, or small business. It’s usually the safest way to go.
2. Right of Use (Hak Pakai)
If you have a residency permit for Indonesia, like a KITAS, you can try to get a Hak Pakai title. This lets you use or occupy a residential property for up to 30 years, with potential extensions, and is registered in your own name. However, the process requires you to live in Indonesia for some time and you need legal help to make sure all the details are right.
Be aware that Hak Pakai is typically only granted for one property per person and is meant for residential, not commercial, use.
3. Through a Foreign-owned Company (PMA)
If you want to run a business in Bali, you can open a foreign-owned company, known as a PMA. This is a more complicated and expensive way, but it lets your company hold titles like the right to build (Hak Guna Bangunan) or right to use land. If you’re thinking about opening a hotel, guesthouse, or large business, this might be your only legal choice.
Keep in mind, even with a PMA, there are requirements and limits, and you’ll need professional legal support to make sure everything is done correctly.
4. The Indonesian Nominee Setup (Not Advised)
It’s not rare to hear about foreigners using an Indonesian friend or partner to “hold” a property for them. In this setup, the property is legally in the name of the Indonesian nominee, but with secret deals or agreements giving the foreigner rights or control. While common, this is very risky—if the nominee decides to claim the property, Indonesian law will almost always be on their side, leaving the foreigner with little protection. Most trusted advisors recommend against this route.
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Essential Tips for Foreigner Who Wants to Have a Property in Bali
- Hire a Reputable Local Notary or Lawyer: Indonesian property law is unique and full of fine print. Spend the money to hire a reliable legal advisor who has experience working with foreigners.
- Check Contract Details Exactly: Make sure the length of the lease, renewal policies, and all costs are stated clearly in your contract.
- Avoid Handshake Deals: Never rely on informal promises or verbal agreements—everything should be in writing and notarized.
While you can’t own land outright in Bali as a foreigner, you can still make your Bali dream real with careful planning and the right legal framework. Leasehold and right of use are the two most secure and popular paths for foreign buyers. Work with transparent, knowledgeable professionals, and be wary of shortcuts. If you do, that sunset view or cozy Balinese home can be yours to enjoy for many years to come.
