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What are the Best Options for Property for Sale in Bali for International Buyers?

Discover legal ways to invest in property for sale in Bali for international buyers. Understand leasehold, Hak Pakai, and PT PMA ownership structures.

Many people dream of owning a beautiful villa or house in Bali, and that’s why understanding property for sale in Bali for international buyers is so important. Foreigners can buy and enjoy homes on this tropical island, but there are special rules to follow. Knowing these rules helps you choose the best and safest way to invest in Bali.

If you’re exploring opportunities to invest overseas, you can also look at other international property options to compare how buying in Bali is different from other countries. This makes it easier to decide whether you want a vacation home, a rental property, or a long-term investment in paradise.

Why Freehold (Hak Milik) Isn’t Available for Foreigners

beautiful scenery in bali

What Is Hak Milik?

Hak Milik is the strongest type of land ownership in Indonesia. It means you completely own the land and the house forever. You can sell it, pass it to your children, or build whatever you like, as long as you follow local rules. However, this type of ownership is only for Indonesian citizens. Foreigners are not allowed to have Hak Milik titles, even if they live or work in Bali.

Why Foreigners Cannot Own Hak Milik

The Indonesian government wants to protect its land for local people. This is why foreigners cannot directly own freehold property. If you are an international buyer, you can still enjoy living or investing in Bali, but you must use other legal options like leasehold or company ownership.

The Risk of Nominee Arrangements

Some people try to get around the rules by putting the property under an Indonesian friend’s name. This is called a nominee arrangement, and it sounds simple, but it is very risky.

Here’s why:

  • The property is not legally yours, even if you paid for it.
  • If the nominee changes their mind, you could lose the property.
  • The government does not recognize this setup, and it could cause legal problems later.

Better Legal Options

Instead of using unsafe methods, foreign buyers should look into safer legal paths. Understanding the right way of buying property in Bali helps protect your investment. You can still find many great property for sale in Bali for international buyers options that are safe and legal, such as leasehold, right-to-use, or setting up a company.

Foreigners can’t have Hak Milik, but that doesn’t mean you can’t invest in Bali. It just means you need to follow the right steps and choose the correct ownership type. This way, you enjoy your property without any worries.

Option 1: Leasehold (Hak Sewa)

beachfront property for sale in bali for international buyers

What Is It?

Leasehold, or Hak Sewa, means you don’t actually own the land, but you get to use it for a long time. It’s like renting a house, but for many years—usually between 25 and 30 years, and sometimes even longer if you renew the contract. During that time, you can live there, build a home, or even rent it out to others. Many property for sale in Bali listings are offered as leasehold options because they are the easiest way for foreigners to buy legally.

Advantages

Leasehold is one of the best ways for international buyers to start investing in Bali. Here’s why:

  • Easier to get: Foreigners can easily sign a lease without setting up a company.
  • Less paperwork: The process is simple compared to other legal ownership setups.
  • Affordable: Leasehold properties often cost less than other types, so it’s a good entry point.

This makes leasehold a great starting option for people exploring property for sale in Bali for international buyers who want a simple and legal way to own a home in paradise.

Disadvantages & Key Risks

Even though leasehold is simple, it has some limits and things to watch out for:

  • The clock is ticking: The lease gets shorter every year, which can lower the property’s value over time.
  • Renewal is not automatic: You must make sure the contract says you can renew it, or you might lose the right to use the land.
  • Needs careful checking: Since it’s not full ownership, you should work with a notary or lawyer to confirm all documents are real and legal.

Suitability

Leasehold is perfect for people who want to:

  • Have a holiday home or rental villa in Bali.
  • Enjoy their property for a few decades without worrying about company registration.
  • Experience living in Bali before deciding to invest long-term.

In short, leasehold is an affordable, safe, and easy way for foreigners to enjoy life in Bali without breaking ownership laws.

Option 2: Right to Use (Hak Pakai)

aerial view of villa in bali

What Is It?

Right to Use, or Hak Pakai, means you can live on and use a piece of land or a house in Bali, but you don’t actually own it. The government gives you special permission through a paper called a title, which comes from the Land Office. This title lets you use the property for 25 to 30 years, and you can ask to extend it later. If you want to stay for a long time, you usually need a residency card that shows you are allowed to live in Indonesia. This is one of the safe and legal ways for property for sale in Bali for international buyers who want a home without owning the land.

Advantages

Having a Hak Pakai title is a good thing because:

  • It’s official: The government gives you a real paper that proves the land is legally yours to use.
  • Your own name: If you meet the rules, the title can be under your name, not someone else’s.
  • Feels safe: You don’t have to worry about fake ownership or tricky deals.

Many people who want to live peacefully and explore real estate in Bali choose Hak Pakai because it feels simple and secure.

Disadvantages & Key Risks

Hak Pakai has some limits that you should understand:

  • Only for homes: You can’t use the land for hotels or big businesses.
  • Need special papers: You must have a residency card or other legal permission.
  • Follow rules: You have to make sure the land has the right zoning and building permits before buying.

If you don’t check these things first, it can cause trouble later.

Suitability

Hak Pakai is great for:

  • People who want to live in Bali for a long time.
  • Families who plan to make Bali their second home.
  • Retirees who want a quiet, safe place to stay.

In short, the Right to Use title is a smart choice for property for sale in Bali for international buyers who want to live in Bali for many years without owning the land forever.

Option 3: PT PMA (Foreign-Owned Company)

luxury property for sale in bali for international buyers

What Is It?

A PT PMA is a special type of company that foreigners can create in Indonesia. When you make one, your company can own and build property in Bali through something called an HGB title (Hak Guna Bangunan), which means “Right to Build.” So, this lets your company use the land, build houses or hotels, rent them out, or even sell them later. The rights usually last for 30 years, and you can add 20 or 30 more years after that. This makes it one of the longest and safest ways for property for sale in Bali for international buyers who want to stay or invest long-term.

Advantages

Starting a PT PMA has some really good benefits:

  • It’s very safe: The law protects your company’s rights, so you don’t have to worry about losing the property.
  • You have full control: You can build, rent, sell, or even use the property for business.
  • Perfect for big projects: You can open villas, resorts, or hotels under your company’s name.

Many people who are already buying property abroad choose this method because it’s legal and gives them strong ownership rights.

Disadvantages & Key Risks

Even though it’s safe, there are some hard parts:

  • It costs more money: You need to start a company, pay taxes, and follow local laws.
  • You have to do paperwork: Your company must stay active by sending reports every year.
  • It’s not for small buyers: If you just want one small house, this might be too much work.

That’s why it’s good to ask for help from local experts who understand the rules.

Suitability

A PT PMA is great for:

  • Investors who want to own property in Bali for a long time.
  • Business owners who want to run a villa or resort.
  • Buyers who want to earn money from renting their property.

In short, a PT PMA is the best choice for property for sale in Bali for international buyers who want full control, legal safety, and a smart way to build a lasting business in Bali.

Key Considerations Before Buying

Work with Trusted Professionals

Before buying any property in Bali, it’s very important to work with a notary and check everything with the land office, also called BPN. These people help make sure your documents are real and legal. They check who really owns the land and if there are any problems with it. This step keeps you safe and protects your money, especially when looking at property for sale in Bali for international buyers.

Check Zoning and Building Permits

Not all land in Bali can be used for houses or hotels. Some areas are only for farms, others for tourism, and some for living. You need to make sure the land is in the right zoning area for your plan. Also, check that the property has the right building permits, called IMB or PBG. Without these, you could face trouble later, like fines or delays.

Understand Renewal and Extension Rules

If you buy a leasehold or use another type of title, your rights may end after a certain number of years. That’s why you should know exactly when and how you can renew your contract. Make sure the renewal rules are written clearly in the agreement. This helps you avoid losing your property later.

Know the Taxes and Costs

Owning property also means paying taxes. There are fees for buying, yearly property taxes, and sometimes VAT if you’re using the land for business. Learning about these ahead of time helps you plan your budget. If you’re new to this, it’s a good idea to read more property buying tips to understand the costs and rules that come with owning a home in Bali.

Plan for the Future

Before you sign anything, think about what will happen if you want to sell, pass on, or renew your property in the future. Having a plan for resale or inheritance makes things easier later. For example, leasehold properties lose value as the years go by, so planning your exit early is smart. This will help you make the most out of your property for sale in Bali for international buyers investment without stress.

Which Option Suits Your Goal?

Everyone buys property for different reasons. Some people want a holiday home, others want to live in Bali for good, and some want to run a business like a villa or resort. So, the table below will help you understand which option fits your goal best. It’s a simple way for property for sale in Bali for international buyers to see what works for them.

Your Goal

Best Option

Why It’s Good

Short- or mid-term holiday use or rental

Leasehold (Hak Sewa)

Easier to get, lower cost, and faster process

Long-term home or retirement place

Hak Pakai (Right to Use)

Official title that is recognized by the government

Business or resort ownership

PT PMA with HGB (Right to Build)

Strongest legal setup for full control and long-term plans

This table helps you match your goal to the right property type. For example, if you only want a vacation home, leasehold is simple and quick. But if you want to live in Bali for many years, Hak Pakai might be better. Also, if your dream is to own a villa or hotel, PT PMA is the smartest route.

By understanding these choices, you can pick the best path for your needs and make the most out of your property for sale in Bali for international buyers investment.

Key Takeaway

In Bali, foreigners can’t fully own land, but there are still good and legal ways to buy a home or start a business. You can pick from Leasehold (Hak Sewa), Hak Pakai (Right to Use), or PT PMA (Foreign-Owned Company) with an HGB title. Each one works for a different goal, like living, renting, or investing. It’s smart to ask a legal expert for help so everything is safe and correct. If you want property for sale in Bali as an international buyer, contact us to learn which option is best for you.

FAQs

1. Can foreigners own land in Bali?

No, foreigners cannot directly own land in Bali under Hak Milik (freehold). However, they can legally buy property through Leasehold (Hak Sewa), Hak Pakai (Right to Use), or a PT PMA (Foreign-Owned Company) setup.

2. What is the safest way for foreigners to buy property in Bali?

The safest way depends on your goal. For short stays, Leasehold is easiest. For living long-term, Hak Pakai is secure. Also, for business or investment, creating a PT PMA company gives the most control.

3. How long can foreigners lease property in Bali?

Leasehold agreements usually last 25 to 30 years and can be extended if stated in the contract. So, it’s important to include renewal terms before signing to protect your rights.

4. Can foreigners rent out their property in Bali?

Yes, foreigners can rent out property legally if it’s under a PT PMA company or if the leasehold contract allows it. So, make sure the property is in a tourism zone and has the right permits.

5. Do I need a lawyer or notary when buying property in Bali?

Yes, always work with a trusted notary and legal advisor. They check ownership documents, permits, and contracts to make sure your investment follows Indonesian laws.

About International Property Alerts


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