The Pathway to Bali Property Ownership for International Buyers

Bali’s stunning beaches, rich culture, and thriving tourism industry make it a prime destination for property investment. However, navigating property regulations as a foreigner can be complex. If you’re looking for property for sale in Bali or want to rent out a villa, understanding the legal framework is essential. Our Bali real estate consultants specialize in helping international buyers secure properties while ensuring compliance with Indonesian laws.

Can Foreigners Own Property in Bali?

Indonesia has strict regulations on land ownership, allowing only Indonesian citizens to hold Freehold (Hak Milik) titles. However, foreigners can legally invest in Bali real estate through two main options: Leasehold (Hak Sewa) and acquiring property through a PT PMA (foreign-owned company).

Understanding Property Ownership Status in Bali

There are several property ownership titles in Indonesia, but the most relevant for foreigners are Freehold and Leasehold.

What is Freehold Property?

Freehold (Hak Milik) is the highest ownership title, granting full ownership rights to the land and any structures on it. This means the owner has complete control over the property, including selling, transferring, or passing it down as inheritance.

Can Foreigners Own Freehold Property in Bali?

While foreigners cannot directly own freehold property in Bali, there are safe and legal pathways to invest in Bali real estate. Some buyers consider using an Indonesian nominee, but this approach carries significant legal risks—since the nominee remains the legal owner, foreign buyers have no guaranteed protection. We do not recommend this option, as it can lead to disputes and potential loss of investment.

A much safer and legally recognized alternative is to set up a PT PMA (Foreign Investment Company). This allows foreigners to purchase freehold property for business purposes, such as operating a villa for rent in Bali, a resort, or other hospitality ventures. With a PT PMA, you can invest in Bali property with full legal protection, making it a secure choice for international buyers.

Benefits of Freehold Property in Bali:

• Full Ownership Rights – The owner has complete control over the land and property.
• No Lease Expiry – Unlike leasehold property, freehold ownership does not require renewal.
• Higher Resale Value – Freehold properties in Bali generally appreciate more over time.
• More Flexibility – Owners can develop, renovate, or sell the property without restrictions.
• Ideal for Long-Term Investments – Suitable for those building a business or permanent home in Bali.

What is Leasehold Property?

Leasehold property in Bali allows foreign buyers to lease land or buildings for a set period—typically 20 to 30 years, with extension options. Unlike freehold property, where ownership is permanent, leasehold gives you the exclusive right to use, rent, or sell the property within the lease period.

How Does Leasehold Property Work?

A leasehold agreement is legally binding and signed in front of an Indonesian notary. Foreign buyers can secure a leasehold villa for sale in Bali under their own name without the need for an Indonesian nominee or company setup. Leasehold owners have full rights to renovate, rent out, or transfer the lease to another buyer, making it a flexible and secure investment option.

Benefits of Leasehold Property in Bali:

• More Affordable Than Freehold – Leasehold villas for sale in Bali are generally priced lower than freehold properties.
• Secure Ownership for Foreigners – Leasehold agreements are 100% legal for non-Indonesian buyers.
• Easier Exit Strategy – Investors can sell the remaining lease to another buyer.
• Ideal for Rental Business – Lower investment costs for leasehold property in Bali allows investors to start generating rental income faster. In high-demand locations like Canggu, Seminyak, and Uluwatu can achieve high occupancy rates.

No Need for a PT PMA – Unlike freehold, leasehold property does not require setting up a foreign-owned company.

Can Foreigners Own a Villa in Bali?

Yes! Foreigners can own a villa in Bali through a leasehold property agreement, which is the most common and legally secure option. Many international investors choose leasehold villas for sale in Bali to generate rental income or enjoy a private holiday home. This allows them to fully control, rent out, and even resell the lease while complying with Indonesian property laws.

Steps to Buying Property in Bali as a Foreigner

1. Consult a Bali Real Estate Consultant – Working with experienced professionals ensures you follow legal procedures and secure the best deals.
2. Choose Between Leasehold or PT PMA Ownership – Depending on your investment goals, decide whether leasehold or freehold via PT PMA is right for you.
3. Conduct Due Diligence – Verify property documents, ownership status, and zoning regulations.
4. Sign a Leasehold Agreement or Set Up a PT PMA – If opting for leasehold, finalize the contract with a notary. For PT PMA, register the company with legal assistance, then you can move forward with acquiring the property.
5. Complete the Transaction – Make payments securely and register your leasehold or business ownership.

Is Leasehold the Best Option for Foreign Investors?

For most foreign investors, leasehold property is the safest and most straightforward way to secure property in Bali. It offers flexibility, legal security, and easier resale options. Freehold via a PT PMA is an alternative, but it requires higher costs and regulatory steps.

Conclusion

Understanding property regulations in Bali is crucial for making a smart investment. Whether you're searching for a villa for rent or want to invest in Bali real estate, working with a trusted Bali real estate consultant will help you navigate the process smoothly. With the right guidance, you can own or lease property legally and enjoy the benefits of owning property in Bali’s thriving real estate market. Browse our listings or reach out today—we’ll help you find the perfect villa to call your own!