IDR (Rp)
IDR (Rp)
Owning property in Bali offers an exceptional opportunity for both investment and lifestyle. Whether you’re looking for a retirement villa, vacation home, or rental investment property, Bali’s real estate market provides excellent returns and year-round appeal.
Our portfolio includes freehold villas, leasehold properties, and luxury apartments in prime locations. Each property is carefully selected for its quality construction, legal compliance, and investment potential. We handle all aspects of the purchase process, including legal documentation and property transfer.
With Bali’s growing tourism industry and stable rental market, property ownership here offers both capital appreciation and rental income potential. Our team provides comprehensive after-sales support, including property management services to maximize your investment returns.
Foreign nationals are prohibited from directly owning land with freehold rights (Hak Milik) in Bali. However, there are several fully legal and secure methods for acquiring property:
•Hak Sewa (Leasehold): The most popular option for foreigners to hold property in Bali. It allows leasing a property for a period ranging from 25 to 99 years, with possibilities for extension, resale, or inheritance, provided these terms are stipulated in the agreement.
•PT PMA + Hak Guna Bangunan (HGB): A foreign-owned company registered in Indonesia (PT PMA) can obtain the Right to Build (HGB) on leased land for up to 30 years, with options for renewal.
•Hak Pakai (Right to Use): Applicable for individuals holding a long-term stay permit (KITAS), granting the right to use a property.
Please note: Schemes involving local nominee ownership are prohibited by law and carry a high risk of losing property rights.
When purchasing property in Bali, the buyer is responsible for the following taxes:
•BPHTB (Bea Perolehan Hak atas Tanah dan Bangunan): A tax on the acquisition of land and/or building rights. The rate is 5% of the higher value between the transaction price and the government-assessed value (NPOP). This tax is paid once before the registration of leasehold or ownership rights.
•PPN (Pajak Pertambahan Nilai): Value-added tax applicable when purchasing property from a developer or legal entity. The current rate is 11%, with a planned increase to 12% effective January 1, 2025.
The seller is obligated to pay the following tax:
•PPh Final (Pajak Penghasilan Final): A final income tax on the sale of property. The rate is 2.5% of the higher value between the transaction price and the government-assessed value (NJOP). This tax must be paid prior to the registration of the transfer of ownership or lease rights.
Due diligence is a legal audit of a property prior to purchase, aimed at minimizing potential risks. This process includes:
•Verification of ownership and lease rights
•Confirmation of SLF and other necessary permits
•Review of cadastral and zoning documents
•Examination of the property’s history and existing lease agreements
•Assessment of debts, overlapping leases, restrictions, legal disputes, and encumbrances
•Obtaining consent from all co-owners, if applicable
Conducting professional due diligence is a crucial step in ensuring a secure property acquisition in Bali.
•IMB (Izin Mendirikan Bangunan): Previously the building permit required for construction, which was abolished in 2021.
•SLF (Sertifikat Laik Fungsi): Currently required certificate confirming a building’s suitability for use. SLF is mandatory for the legal utilization of property, including rental or commercial activities.
• Hak Milik (Freehold): Full ownership rights to land, exclusively available to Indonesian citizens.
• Hak Sewa (Leasehold): Long-term lease of land, which is the most common form of property holding for foreigners in Bali.
The complete process of purchasing property in Bali typically takes between 2 to 4 weeks. This timeframe encompasses due diligence, contract preparation, document verification, and notarization of the transaction.
•Buyer: Due diligence costs, payment of taxes (BPHTB, PPN), notary fees, and SLF processing.
•Seller: Payment of the final income tax on the sale of property (PPh Final).
Upon completing a property purchase, the following actions are necessary:
•Register leasehold or ownership rights through PT PMA in the land registry
•Obtain SLF if not already acquired
•If applicable, secure rental licenses (Pondok Wisata or NIB + TDUP)
•Set up regular payments for annual taxes (PBB and others)
Utilizing local citizens as nominal owners (nominee arrangements) is an illegal practice not protected by law. In the event of disputes or the nominee’s death, there is a significant risk of losing property rights. The only legal forms of property holding for foreigners are through PT PMA or Hak Sewa.
Yes, acquiring property during the construction phase (off-plan) is a common practice in Bali. It is essential to enter into a legally sound agreement with the developer, detailing:
•Approved architectural plans and project renderings
•Construction phases and expected completion timelines
•Technical specifications and list of materials
•Conditions for modifications and accountability for discrepancies between the completed property and the agreed-upon plans
Some developers may offer installment payment options; however, this is not standard practice. Typically, payment schedules are customized and may require a substantial initial deposit.
When acquiring property through a personally registered foreign-owned company (PT PMA), the asset is held under the legal entity. It is important to:
•Maintain official accounting records
•Submit timely reports and fulfill tax obligations
•Utilize the property strictly within the scope of the declared business activities
Property registered under a PT PMA remains an asset of the company. Upon selling the company, the buyer assumes ownership of the PT PMA along with its assets, including the property. This method facilitates the transfer of property without the need for re-registration of ownership rights.
Property held under a PT PMA is considered a company asset. In the event of dissolving the PT PMA, the property cannot be automatically transferred to a foreign individual. The company must first settle all obligations (taxes, debts, etc.). Subsequently, the asset must be sold to a third party or transferred to another registered company in Indonesia. Improper dissolution procedures may result in the loss of property rights. Therefore, it is crucial to plan the strategy for transferring or selling the property before initiating the company’s liquidation process.
Yes, foreigners can lease land through Hak Sewa or via a PT PMA and construct a villa, provided all necessary permits are obtained:
•The land must be located in a residential zone, not in green or agricultural zones
•SLF, NIB, and TDUP must be acquired, depending on the intended use of the property
Yes.
•Hak Sewa: Inheritance rights are possible if explicitly stated in the lease agreement.
•PT PMA Ownership: Property is held by the company, not an individual. Therefore, transferring property involves transferring company shares to heirs or a new owner, avoiding the need for re-registration of property rights. It is essential to ensure that the share transfer process complies fully with Indonesian corporate law.
Opening a bank account is not mandatory but can be convenient for long-term residence or renting out the property. Property purchases can be paid via international bank transfers to the accounts of the notary, developer, or property owner.
For short-term rentals (such as daily rentals on Airbnb):
A Pondok Wisata license is required for individual owners, or NIB + TDUP for companies.
For long-term rentals (one month or longer):
No license is required, but the property must be located in a residential zone and have a valid SLF (Sertifikat Laik Fungsi).
Upon expiration of the lease term, the property reverts to the landowner unless otherwise specified in the lease agreement.
Some agreements include provisions for automatic extension or a priority purchase option.
Yes, this is carried out as part of the due diligence process.
See also: “What is due diligence in property purchases?”
This aspect is also verified during the due diligence process.
See also: “What is due diligence in property purchases?”
Yes, you can purchase property in Bali while outside Indonesia.
You will need to grant a Power of Attorney (POA) to your representative or a notary in Indonesia.
The POA must be notarized in your country of residence and generally legalized (apostille or consular legalization).
Your representative will then be able to sign all necessary documents on your behalf, including lease or sale agreements.
The procedure includes:
•Negotiating the terms of the transaction remotely
•Signing preliminary agreements online
•Sending original documents via international courier services
Remote property purchases require professional legal support.
Discover Bali provides full legal assistance to ensure the security and transparency of the transaction.
To do this, the following checks must be carried out:
•Verify that the plot complies with the zoning designation (residential or tourism zone)
•Confirm that a valid SLF exists
•Check for licenses such as Pondok Wisata, NIB, or TDUP (if required)
SHM (Sertifikat Hak Milik) — full ownership rights over land, available exclusively to Indonesian citizens.
SHGB (Sertifikat Hak Guna Bangunan) — the right to build and own buildings, granted to Indonesian citizens and legal entities registered in Indonesia (including PT PMA companies owned by foreign investors).
Foreign individuals are not permitted to hold SHGB directly.
The main risks, which are identified through the due diligence process, include:
•The land being located in a prohibited (green or agricultural) zone
•The absence of a valid SLF
•The presence of unofficial tenants
•Legal disputes, outstanding debts, or encumbrances
A professional legal review helps identify and minimize these risks in a timely manner.
Explore the most sought-after locations in Bali
Cultural heart of Bali with rice terraces
Cultural heart of Bali with rice terraces
Cultural heart of Bali with rice terraces
Cultural heart of Bali with rice terraces
Cultural heart of Bali with rice terraces
Cultural heart of Bali with rice terraces
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