Navigating Bali’s Changing Business Landscape: A Guide to Legal Villa Ownership

img Ardana Neswari | November 12, 2023
Hello, I’m Ardana, the Hosting Supervisor at Bukit Vista. In the past months, numerous prospective partners, including guests and villa owners, have reached out to us, seeking assurance regarding the legality of the accommodations under our management. This concern arose since the illegal nature of numerous villa and homestay businesses owned by foreigners in Bali was brought to light. The government of Bali has announced plans to crack down on these businesses, emphasizing compliance with zoning regulations, tax laws, and enforcing penalties for non-payment of taxes and failure to obtain necessary permits.
This article explores the crucial steps property owners and investors should take to navigate the evolving regulatory landscape and build a villa in Bali legally.

Understanding the Legal Landscape

The government’s commitment to legalizing businesses and ensuring compliance with regulations underscores the need for property owners and investors to stay informed and proactive. Failure to comply may result in severe financial and legal consequences, including the termination of licenses and imprisonment.

Preparing for Regulatory Changes

To prepare for the impending changes, we recommend taking several crucial steps:
  1. Obtaining Necessary Permits: Property owners should ensure they have all the required permits to operate legally. This includes securing necessary documentation such as investor kitas and adhering to zoning regulations.
  2. Complying with Tax Laws: Strict adherence to tax laws is imperative. The government’s focus on cracking down on non-paying taxes emphasizes the importance of staying on the right side of the law.
  3. Consulting with a Visa Agency: Seeking professional advice is encouraged. Consulting with a visa agency can provide valuable insights and assistance in navigating the complex process of legalizing villa ownership.

Avoiding Shortcuts

While the temptation to cut corners may be present, we at Bukit Vista advise against it. Recent government crackdowns on illegal villas serve as a stark reminder of the potential legal issues that can arise from taking shortcuts. Investing in the legal route, even if it incurs higher costs initially, is emphasized for long-term security.

Prepare for Future Regulations

As the government focuses on regulating illegal villas, businesses such as coffee shops and restaurants in tourist areas may be next in line. We at Bukit Vista encourage proactive measures to ensure compliance with upcoming regulations.


As Bali undergoes significant changes in its business landscape, it is crucial for property owners and investors to be well-informed and prepared. We urge our prospective partners to take the legal route, emphasizing the importance of obtaining necessary permits, complying with tax laws, and consulting with professionals. Coffee and restaurant owners are also reminded to brace themselves for potential government regulations.
Don’t wait for regulations to catch up. Contact Bukit Vista today for personalized, proactive support in securing your investment’s future. Connect with Bukit Vista – Your partner in navigating Bali’s evolving property landscape.
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