How to Buy Property in Bali as a Foreigner

Thinking about buying a home in Bali? Whether you want a place to live, a holiday retreat or a rental investment, it helps to understand what you can legally acquire before you start comparing properties.

Foreigners cannot personally own freehold land in Indonesia. However, they can secure property through long-term leases, registered residential rights or a company established for a permitted business.

In this article, we will walk you through these options and the buying process. We’ll also cover minimum prices, rental rules, taxes and the checks to complete before committing.

Can Foreigners Buy Property in Bali?

Foreigners can acquire property rights in Bali, but they cannot personally hold freehold land title, known as Hak Milik. Article 21(1) of Indonesia’s Basic Agrarian Law (Law 5/1960) reserves this title for Indonesian citizens.

Instead, most foreign buyers choose from these options:

• Leasehold: a contractual right to use land or a building for an agreed period.
• Personal residential ownership: Hak Pakai for a landed home, or ownership of a qualifying apartment unit.
• Company-held property: a foreign-owned Indonesian company holding land rights for its genuine business activities.

However, holding property and running a business there are separate matters. A lease allowing subletting, for example, does not automatically authorize tourist accommodation.

The Three Ways Foreigners Hold Property in Bali

1. Leasehold  (Hak Sewa)

Leasehold can suit foreign buyers who want a holiday home or a long-term base in Bali without establishing a company. You pay for the right to use the property for an agreed period, while the landowner keeps the underlying title.

Lease terms commonly cover 25 to 30 years, with an extension option negotiated at the start. This gives you a defined period to enjoy the property, but the extension deserves as much attention as the initial lease.

Articles 44 and 45 of Indonesia’s Basic Agrarian Law provide the legal basis for Hak Sewa for buildings. Article 45 includes foreigners domiciled in Indonesia among eligible holders.

The main consideration is the agreement itself. A lease does not give you a separate registered land title, so the contract must clearly establish what you can do with the property and how your rights are protected.

For example, a villa advertised with a “30-year extension” may leave the future price entirely open. If you plan to spend money renovating or building, that uncertainty could affect whether the investment makes sense.

Taking over someone else’s lease needs similar care. Before paying, review the original agreement to establish whether it permits assignment and whether the landowner’s consent is required. Then make sure the transfer follows those conditions.

Key Clauses to Agree Before Signing

1. Extension terms and pricing: Agree how the extension price will be calculated and when you must exercise the option. A promise to negotiate later gives you less certainty than a workable formula.
2. Assignment and subletting: Establish whether you can transfer the remaining lease or let someone else occupy the property. However, permission to sublet does not replace the licenses required for tourist accommodation.
3. Sale of the underlying land: Address what happens if the landowner sells during your lease. You can also negotiate a right of first refusal, giving you the opportunity to match an offer.
4. Buildings and improvements: State who owns the villa and any improvements during the lease. Just as importantly, agree what happens to them at expiry and whether compensation is payable.
5. Succession: Explain how the lease will continue if you or the landowner dies. This helps protect the arrangement for your family and clarifies the obligations of successors.
6. Title warranties and termination: Require the owner to disclose mortgages, ownership disputes and other claims. The agreement must also explain when it can end early and what remedies are available.

These provisions affect more than your initial purchase. They also influence your ability to renovate, transfer the lease or leave it to your family.

Before signing, it is advisable to have an independent lawyer review both the agreement and the underlying title. Emerhub’s Bali team can coordinate the legal review, title checks and notarial process on your behalf.

2. Hak Pakai for a Landed Home

If you want a home in Bali with a registered land right in your own name, Hak Pakai is an option to consider. Unlike leasehold, it gives you a right recorded at the land office, with a defined term and conditions.

Article 41 of Indonesia’s Basic Agrarian Law defines Hak Pakai. Article 54 of Government Regulation 18/2021 requires its grant to be registered, providing the legal basis for that recorded right.

For buyers planning to keep a home over the longer term, this offers practical advantages. You can transfer the right or pass the property to an eligible heir. A qualifying title can also support a mortgage, although the bank will assess the financing application separately.

The mortgage provision comes from Article 4(2) of Law 4/1996. It covers Hak Pakai over state land where the right is registered and transferable.

How Long Can You Hold the Property?

The answer depends on the underlying land. Article 52 of Government Regulation 18/2021 sets out these terms:

This distinction becomes important when comparing listings. Two properties advertised as Hak Pakai may have different remaining terms and renewal arrangements.

An “80-year title” also needs closer examination. The full period is not granted unconditionally at purchase, so establish which stage the title has reached and what is required for the next extension or renewal.

Eligibility and Minimum Prices

Article 69 of Government Regulation 18/2021 requires foreign residential buyers to hold valid immigration documents. Its explanation identifies a visa, passport or stay permit, including a limited or permanent stay permit.

For a landed house in Bali, the standard minimum purchase price is IDR 5 billion. Foreign-owned landed homes are also normally limited to one plot per person or family, with a maximum area of 2,000 square meters.

These conditions make Hak Pakai relevant to buyers seeking a personal residence. However, the residential title does not itself authorize a tourist-accommodation business, so rental plans need a separate assessment.

Apartment Ownership

An apartment can offer another way to hold residential property in your own name. However, the legal review covers both the unit and the development in which it sits.

The ownership certificate, often called Hak Milik atas Satuan Rumah Susun, records your ownership of the apartment unit. It does not give you personal freehold ownership of the underlying land.

Under Article 71 of Government Regulation 18/2021, qualifying developments can stand on Hak Pakai or HGB land in qualifying locations. Therefore, the development’s location and underlying title are as important as the unit’s price.

The standard minimum for a foreign apartment buyer in Bali is IDR 2 billion. Before reserving a unit, establish whether the development qualifies for foreign ownership and whether the unit certificate has been issued.

A listing described as an “apartment” or “condotel” does not answer those questions. It is advisable to review the ownership documents before relying on the marketing description.

3. Property Held Through a Foreign-Owned Company

For investors who want to build a portfolio, run a rental business, or hold multiple properties, the company route is the strongest option. Known as a PT PMA, the company can hold Hak Guna Bangunan (HGB), or the right to build.

Article 35 of the Basic Agrarian Law defines HGB as the right to construct and own buildings on land the holder does not own.

This gives the business a registered property asset. However, the company owns that asset, rather than its shareholders personally, and must continue meeting its licensing, tax and reporting obligations.

HGB terms depend on the underlying land:

• On state land or management-right land, the initial term can be up to 30 years, followed by a possible 20-year extension and 30-year renewal.
• On Hak Milik land, the term can be up to 30 years, renewable through a new grant deed.

However, incorporation alone does not establish permission to operate. The intended business must be open to foreign investment and permitted at the property’s location.

Under Investment Regulation 5/2025, the general financial requirements include:

For accommodation and certain property projects, land and buildings can count toward investment. \.

Bali’s Restrictions on New Foreign Property Businesses

Before choosing the company route, assess whether the intended business can obtain a new license. Bali restricted new foreign-investment licensing applications through the OSS system for 18 specified business categories from the third week of May 2026.

The property and accommodation categories named in the announcement and associated reporting include:

The official Bali announcement places the 6,000-square-meter qualification on star hotels. By contrast, it lists basic hotels without that qualification.

This does not establish a blanket ban on every accommodation business. However, it does mean buyers cannot assume that establishing a PT PMA will allow them to rent out any villa.

Before committing, identify the correct business classification and establish whether a new license is available for the proposed project. Then review the location, building approvals and operating arrangement together.

Buying an existing company requires the same care. Its current license, reporting history and permitted activities must support what you plan to do after the acquisition.

Comparing the Property Options

Start with how you intend to use the property. Once that is clear, compare the rights, remaining term and total cost of the available arrangements.

Understanding Bali's Land Zones

In Bali, zoning determines which activities are permitted on a plot. Neither neighboring developments nor existing online rental listings establish that the property’s use is lawful.

Bali's zoning system uses color codes that are worth knowing if you are looking at properties:

1. Pink (Tourism) is the zone you want for any rental investment. Hotels, villas, and tourist accommodation are all permitted here. The main pink zone areas include Kuta, Seminyak, Canggu, Uluwatu, Jimbaran, and parts of Nusa Dua.
2. Orange (Residential) covers areas zoned for private homes and apartments. Buildings here are for living in, not for running a tourist accommodation business. Common orange zone areas include parts of Denpasar, Kerobokan, and Pererenan.
3. Red (Commercial) is for shops, restaurants, and offices. Found in Denpasar and central Seminyak.
4. Yellow (Mixed) is primarily agricultural but can be converted for residential use under specific procedures.
5. Green (Agricultural) is strictly for farming. Building tourism accommodation in a green zone is illegal, and the government is actively demolishing structures that violate this. The high-profile Parq Ubud case (a major lifestyle complex shut down for being built on protected rice fields) is a recent example.

Each regency in Bali has its zoning regulations, typically available on the regency's official websites. However, these zoning maps may not always be up-to-date. It's crucial to verify the current zoning rights directly with local authorities before proceeding with any property transactions. 

Property Due Diligence Before You Buy in Bali

Bali's property market has a long history of title disputes, zoning violations, and unpermitted construction. A beautiful villa means nothing if it sits on disputed land or in the wrong zone. Due diligence is where you either protect your investment or expose it.

Therefore, It is strongly recommended to complete the legal and technical checks before committing substantial funds. This applies whether you are acquiring a title or paying a long lease premium.

Here are some of the key aspects you should look into:

Check the Title and Registered Owner

Ask for the original land certificate and have a qualified notary (PPAT) cross-check it at the local BPN office. Confirm the certificate number, the registered owner, the plot boundaries, and any expiry dates if it is HGB or Hak Pakai. Watch out for legacy certificates such as Girik, which became invalid for transfer purposes under recent regulations and cannot be legally transferred to a new owner.

A land deed official, known as a PPAT, can verify the certificate through the land office. The review covers the registered owner, title type, remaining term, plot area and registered mortgages or other claims.

Older documents such as girik or Letter C are not substitutes for a registered title. Following the five-year period under Government Regulation 18/2021, they serve as supporting evidence for registration. However, this does not mean the land automatically became state property.

Confirm Authority to Sign

The person negotiating the transaction may not be able to complete it alone. Marital property, inherited land, corporate ownership and powers of attorney can require additional consent or documents.

For instance, if the property belongs to a married couple, both spouses must sign. Similarly, if the seller inherited the property, all heirs need to consent. A family member’s verbal assurance does not establish that the transaction can proceed.

Skipping this step is one of the most common reasons sales unravel after the buyer has already paid a deposit.

Check Boundaries and Access

Boundary disputes are one of the most common sources of post-purchase litigation in Bali. A current survey by a licensed surveyor confirms that the physical boundaries match what is on the certificate.

Compare the certificate and survey information with the physical plot. If there are any discrepancies, resolve those through the land office or a qualified surveyor before completing the transaction.

Furthermore, if the road to property crosses a neighbor’s land, confirm a written, enforceable right to use it.

Review Debts, Disputes and Tax Records

The review must cover mortgages, disputes and outstanding land and building tax. If a mortgage exists, agree how it will be discharged before completion. Also establish how and when the original certificate will be released.

The payment schedule should follow those arrangements. Releasing the full price before the mortgage is cleared can leave the you exposed.

Check the Intended Use

Review zoning, building approvals and operating permissions together. For rental property, identify the licensed operator and establish whether its permissions cover the activity and location.

These checks help determine whether the property can support your plans before you pay for it. The guide to property due diligence in Bali explains the review in more detail.

Can I Buy Property Under an Indonesian's Name?

This question comes up often, usually because a buyer has been told they can sidestep the foreign ownership rules by having an Indonesian "nominee" hold the title for them.

An Indonesian nominee cannot lawfully give a foreign buyer freehold ownership through side agreements. Article 26(2) of the Basic Agrarian Law prohibits direct and indirect transfers of Hak Milik to foreigners. Separately, the Investment Law voids nominee shareholding agreements.

If you put a property in an Indonesian nominee's name, the nominee owns it. Their death, divorce, debts or refusal to cooperate can therefore expose the you to disputes without delivering the promised ownership.

Any side agreement you sign with them is unenforceable in Indonesian courts. So if things go wrong, not only do you lose the property, you also cannot recover the money you paid.

And "things go wrong" happens more often than buyers expect.

In February 2026, Bali went further by formally criminalizing nominee land transfers under Perda 4/2026, adding criminal exposure for both the foreigner and the Indonesian nominee on top of the existing civil risks. Enforcement has been active, with the Indonesian government targeting nominee structures as part of a broader crackdown on foreign property ownership shortcuts.

A legitimate lease or registered right gives you rights that can be documented and assessed before payment. Choose the structure around those rights rather than relying on agreements intended to disguise foreign freehold ownership.

Steps to Buy Property in Bali

1. Confirm the Property’s Purpose and Legal Route

This is the work you do before you even start looking at properties seriously. It includes choosing the right ownership structure for your situation, lining up the legal and advisory support you will need, and (for PT PMA buyers) starting the company setup process.

For leasehold and Hak Pakai buyers, this phase is mostly about preparation and engaging the right advisors. Hak Pakai buyers also need their KITAS or KITAP in place before they can hold registered title.

2. Complete Due Diligence and Agree Conditions

Once you have identified a property, the next step is to verify everything before committing. This is the same for all three structures and includes aspects such as title verification at BPN, zoning confirmation, permit and SLF checks for any existing buildings, a boundary survey, a tax status review, and confirmation that the seller has the legal right to sell.

Most buyers sign a preliminary agreement with a refundable deposit at the start of this phase, which locks in the price while the verification work happens. The deposit is returned if the due diligence reveals problems.

3. Prepare the Agreement or Deed

This is the formal acquisition. For PT PMA and Hak Pakai buyers, the Sale and Purchase Deed (Akta Jual Beli) is signed before a licensed PPAT notary, who handles the title transfer. Taxes are paid at signing which include 5% BPHTB for the buyer, notary fees of 1% to 2.5%, and 12% VAT if buying a new build from a developer.

The title is then registered at the BPN office under the PT PMA's name (for HGB) or your own name (for Hak Pakai).

For leasehold buyers, this phase looks different. There is no title transfer because the land continues to belong to the Indonesian landowner. Instead, the lease contract is drafted, reviewed, and signed before a notary, then registered with the relevant authorities. There is no BPHTB on leasehold transactions and no BPN title registration.

Typical duration: 1-2 weeks

Phase 4: Post-Purchase

For most buyers, the process effectively ends at Phase 3. You hold the property and you can start using it. A few situations require additional steps after the purchase:

• If you plan to build or renovate, you need to apply for a PBG building permit through the OSS system, and obtain the SLF safety certificate before occupancy.
• If you plan to operate the property as a short-term rental, you need to apply for tourism business licensing, which typically takes 6 to 12 months. This is a PT PMA-only path; leasehold and Hak Pakai do not permit short-term rentals.
• If you hold the property through a PT PMA, ongoing compliance applies: quarterly LKPM reports, annual financial filings, and corporate maintenance.

Duration: Variable, depending on what applies

Taxes and Fees When Buying Property in Bali

The main costs depend on whether you are leasing, acquiring residential property or purchasing through a company. Request an itemized estimate before signing so the payment schedule reflects the full transaction cost.

For BPHTB, deduct the non-taxable allowance from the taxable acquisition value before applying the local rate. Where the declared value is lower than the assessed tax value, or cannot be established, the assessed value can determine the tax base.

Annual PBB follows a different calculation. The national rate ceiling is 0.5%, but the local calculation also uses assessed value, an allowance and the applicable taxable proportion. It is therefore not simply 0.5% of the purchase price.

An ordinary lease does not attract BPHTB merely because the agreement is signed. However, a tenant acting as a withholding agent, such as an Indonesian company, may have to withhold and remit the lease income tax.

Professional fees also need to be separated. The PPAT fee cap does not include every legal service, survey or title conversion within a single 1% package.

VAT Relief for Qualifying New Homes in 2026

Under Finance Regulation 90/2025, the government covers VAT on the first IDR 2 billion of the selling price of qualifying new homes. The property must be priced at no more than IDR 5 billion, and the scheme applies to qualifying handovers during 2026.

Foreign individuals with an Indonesian tax number can qualify if they meet foreign-property ownership rules. To claim the relief, the developer must also meet the scheme’s documentation requirements.

In addition, each individual can claim relief on only one qualifying unit. Selling or transferring that property within one year can invalidate the benefit, so include this restriction in your plans.

For a foreign house purchase in Bali at the standard minimum price, the IDR 5 billion threshold coincides with the scheme’s maximum eligible selling price. Qualifying apartments have a lower foreign-buyer minimum of IDR 2 billion.

Before including relief in your budget, establish whether the buyer, property and developer meet the conditions. The cost of property in Bali also includes operating and ownership expenses beyond the purchase.

Buy Property in Bali with Emerhub

The property’s legal rights, permitted use and transaction documents must support the same plan. Emerhub helps foreign buyers coordinate these matters before making a financial commitment.

Our Bali team can help you:

• Compare leasehold, residential ownership and company-held property
• Review titles, ownership documents, zoning and permits
• Coordinate legal review of lease and purchase arrangements
• Work with notaries, land deed officials and the land office
• Assess business licensing for a proposed rental operation
• Establish and maintain a company where the activity permits and requires one

Tell us about the property and how you intend to use it. Fill out the form below and our team will get in touch.