Bali’s breathtaking scenery, rich culture, and booming tourism industry make it a prime destination for property investment. But can foreigners legally buy property in Bali? The answer is yes—with the right approach! While Indonesia has strict property ownership laws, several legal avenues allow foreigners to secure long-term rights to properties in Bali. This guide breaks down the best options and steps to navigate the process smoothly.
Can Foreigners Buy Property in Bali?
Yes, but with restrictions. Foreigners cannot directly own freehold land (Hak Milik) in Indonesia, but they can acquire property through alternative ownership structures that provide long-term security. The three most common legal options include:
- Hak Pakai (Right to Use): Best for personal residences.
- Hak Guna Bangunan (Right to Build): Suitable for property development.
- PT PMA (Foreign-Owned Company): Ideal for business and investment purposes.
Let’s dive into each option in detail.
1. Hak Pakai (Right to Use) – Ideal for Homeowners
Hak Pakai is the most straightforward way for foreigners to legally own property in Bali for personal use.
✅ Lease Duration: Initial term of 25 years, extendable to 80 years.
✅ Who Can Use It? Foreigners with a valid visa or residency status.
✅ Best For: Those looking to own a private home or villa in Bali.
The property must be certified as residential land, and the title is granted by the Indonesian National Land Agency (BPN). This option is ideal for expats or retirees seeking long-term residency.
2. Hak Guna Bangunan (Right to Build) – Perfect for Developers
For foreigners looking to construct and develop property, Hak Guna Bangunan (HGB) allows them to build on land they do not own outright.
✅ Lease Duration: Initial 30 years, extendable up to 80 years.
✅ Who Can Use It? Foreigners through a legal entity (PT PMA or local company).
✅ Best For: Property developers and investors.
The main difference between Hak Pakai and Hak Guna Bangunan is that HGB allows more flexibility for commercial activities, such as renting out properties.
3. PT PMA – The Best Option for Investors
Setting up a PT PMA (Foreign Investment Company) is the only way foreigners can fully own and operate real estate businesses in Bali.
✅ Ownership: Foreigners can own 100% of the company.
✅ Legal Standing: Can hold both Hak Pakai and Hak Guna Bangunan titles.
✅ Best For: Those looking to invest in rental properties, resorts, or commercial real estate.
Although setting up a PT PMA involves more paperwork and capital, it’s the safest long-term investment strategy for foreigners in Bali.
Step-by-Step Guide to Buying Property in Bali
- Find a Trusted Real Estate Agent – Work with professionals who understand foreign ownership laws.
- Conduct Due Diligence – Verify land titles, zoning regulations, and ensure compliance with Indonesian law.
- Choose the Right Ownership Structure – Select between Hak Pakai, Hak Guna Bangunan, or PT PMA based on your needs.
- Sign a Secure Lease Agreement – Ensure the contract protects your rights and is legally registered.
- Manage Legal and Tax Requirements – Register the property and pay necessary taxes to remain compliant.
Frequently Asked Questions (FAQs)
Q: Can I buy freehold property in Bali as a foreigner?
A: No, foreigners cannot own freehold property, but they can secure long-term rights through leasehold agreements, Hak Pakai, or PT PMA.
Q: Can I rent out my Bali property?
A: Yes, but only through a PT PMA or under Hak Guna Bangunan. Properties under Hak Pakai cannot be rented out commercially.
Q: What is the cost of buying property in Bali?
A: Prices vary depending on location and property type, ranging from $100,000 to several million dollars, plus legal fees and taxes.
Secure Your Bali Property Investment
Foreigners can buy property in Bali—but understanding the legal pathways is key. Whether you're looking for a dream villa, an investment opportunity, or a development project, choosing the right ownership structure will ensure a secure and hassle-free experience.
???? Need Expert Assistance? Contact our team at Rumah3d.com for professional guidance on buying property in Bali.