Bali’s stunning landscapes, tropical climate, and growing infrastructure make it one of the most attractive destinations for property buyers. Whether you’re looking for a vacation villa, retirement home, or long-term investment, understanding the tips buying property in Bali is crucial for a smooth and profitable transaction.
Understand Ownership Rights in Indonesia
Foreigners cannot directly own freehold land in Indonesia, but there are legal frameworks that allow them to control or use property in specific ways:
Common Ownership Types for Foreigners
- Hak Pakai (Right to Use): Allows foreign nationals to lease and use a property for up to 80 years (initial 30-year lease with possible extensions).
- Leasehold Agreements: Typically 25–30 years with renewal options, ideal for villas or commercial spaces.
- Company Structure (PT PMA): A foreign-owned company can acquire property under Hak Guna Bangunan (Right to Build) for business purposes.
Knowing these structures helps avoid legal complications and ensures your investment is safe.
Choose the Right Location
Location is everything in Bali. Different areas offer unique experiences, and your purpose—residential, commercial, or rental income—should guide your choice.
- Canggu & Seminyak: Popular among expats and digital nomads; great for rental returns.
- Ubud: Lush, serene, and cultural; ideal for retreats or retirement.
- Uluwatu & Bukit Peninsula: Emerging spots for luxury and oceanview properties.
- Sanur & Nusa Dua: Family-friendly and peaceful, with growing local infrastructure.
Visit multiple locations to evaluate accessibility, neighborhood vibe, and potential development.
Work with Trusted Professionals
Working with the right professionals can protect you from scams and ensure that the buying process is legitimate and transparent.
- Licensed Notary (Notaris PPAT): Handles land title transfers and legal paperwork.
- Reputable Agent: Guides you through available listings, market prices, and negotiations.
- Legal Advisor: Helps verify land ownership status and structure the contract under Indonesian law.
Always verify credentials and experience when hiring professionals for your property transaction.
Conduct Thorough Due Diligence
Never skip due diligence when buying property in Bali. It ensures that the land or building you’re interested in has no legal disputes or hidden restrictions.
- Confirm the land title is valid and unencumbered.
- Ensure the seller has full rights to sell the property.
- Check zoning regulations (residential, commercial, tourism).
- Make sure the property is not in a protected or green zone.
Ask your notary or legal advisor to assist in conducting all checks before committing financially.
Secure Financing and Payment Options
Most foreign buyers pay in cash, as Indonesian banks rarely offer mortgages to non-residents. Ensure all transactions are transparent:
- Make payments through a secure Indonesian bank account.
- Avoid under-the-table or cash deals, as they may void legal protections.
- Consider currency exchange fees and timing if you’re transferring large amounts internationally.
Finalize Legal Paperwork
After agreeing on the price and terms, you’ll need to sign a Sale and Purchase Agreement (PPJB) followed by the final deed transfer. The notary will:
- Draft the deed of sale (Akta Jual Beli)
- Register the transaction with Indonesia’s Land Office (BPN)
- Facilitate Hak Pakai or lease documentation for foreign buyers
All paperwork should be bilingual and legally vetted.
Conclusion
Buying property in Bali can be a rewarding venture if approached with the right knowledge and preparation. From understanding ownership rights to conducting due diligence and choosing the right location, every step counts toward a secure and beneficial investment. Collaborate with experienced professionals and remain informed throughout the process to avoid costly mistakes and ensure long-term value.
FAQs About Buying Property in Bali
1. Can foreigners buy property in Bali?
Yes, but not under freehold. Foreigners typically use leasehold, Hak Pakai, or PT PMA structures.
2. What is the safest way to buy property in Bali as a foreigner?
Use a licensed notary and legal advisor to structure your purchase legally and securely.
3. How long can I lease property in Bali?
Standard leaseholds are 25–30 years, with renewal options up to 80 years depending on agreements.
4. What fees should I expect when buying property?
Notary, land transfer tax, and agent fees—typically around 5–10% of the property value.
5. Are there restrictions on where foreigners can buy?
Yes, zoning laws apply. Make sure the land is in a permitted zone for your intended use.
6. Can I earn income from my property in Bali?
Yes, especially in tourist areas, but you must comply with tax and business license regulations.
7. Is it better to buy land or an existing villa?
Depends on your goals—land offers customization, while villas offer immediate rental potential.
8. What areas in Bali are best for investment?
Canggu, Seminyak, Uluwatu, and Ubud are top choices for strong growth and rental returns.
9. How long does the property buying process take?
With complete paperwork, the process usually takes 1–2 months. Longer if issues arise during due diligence.
If you are interested in finding out more information about property in Bali, you can visit our website at www.buypropertyinbali.com.au. You can also click on the WhatsApp link (+62)818998818 (Mr. Fajar) to connect directly with our team.