The Complete Guide to Buying Property in Bali

Delve into a wealth of knowledge and expert advice, empowering you to make informed decisions as you navigate Bali’s enchanting real estate landscape.


Paradise Awaits
Investing in Bali real estate means owning a piece of paradise, where every morning is greeted by the gentle rustle of palm trees and every evening is adorned with awe-inspiring sunsets.
High Return on Investment
The island's booming tourism industry promises a compelling return on investment. Properties appreciate steadily, offering lucrative financial growth opportunities with ROIs ranging from 10-30%.
Investment Friendly
Investing in Bali is safe and legal. Our legal partners can handle all the necessary permits and licensing obligations for your new development project.

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We’re here to assist with all your inquiries about the Bali property market, whether you’re a first-time buyer or an experienced investor!

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From understanding property laws to navigating regulations, we help you stay informed and make well-informed decisions.

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Buying Property in Bali Made Easy ​

With our deep-rooted expertise and comprehensive knowledge of the local property landscape, we have fine-tuned the process of buying property in Bali.

Frequently Asked Questions

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Investing in property in Bali is a great way to diversify your portfolio. As a popular tourist destination, Bali offers various real estate options, including villas, apartments, and land. The robust tourism industry attracts millions of tourists each year, drawn by its beautiful beaches, rich culture, and stunning natural landscapes. This high demand for accommodations can provide property investors with a steady rental income stream.

Additionally, Bali’s property market is advantageous due to its lower costs compared to other popular destinations like Sydney, London, and New York. Affordable options make Bali an ideal location for investors who may not have large capital to invest in more expensive locations.

Furthermore, the Balinese government has implemented policies to attract foreign investment, increasing international investors’ interest. The property market in Bali has also seen significant growth in property developments, especially in the luxury segment.

A freehold property refers to land that is owned outright by an individual or entity, with no time limit on its ownership. In other words, once you purchase a freehold property in Bali (or elsewhere), you own it indefinitely—until you decide to sell it or pass it down as an inheritance.


  • Complete control over your property and your investment.
  • No restrictions on usage.
  • Can be passed down through generations.


  • Higher initial cost compared to leasehold properties.
  • Responsibility for maintenance falls solely on the owner.

Leasehold refers to properties where individuals have purchased the rights to use land from another party (usually the government) for a specific period of time. These agreements typically last for 25 years but can extend up to 99 years. After this period, the property reverts to the original owner unless the lease is renewed, which incurs additional costs.


  • Lower upfront costs compared to buying freeholds.
  • Potentially less responsibility for maintenance costs.
  • Easier exit strategy if you need to terminate the contract.


  • Restrictions on the use and modifications to the property.
  • Potential risks associated with renewing leases upon expiration.

Learn more about Freehold vs. Leasehold Properties

No, foreigners don’t need to register a PT PMA (a foreign-owned limited liability company) to acquire property in Indonesia. However, it is one of the safest ways for foreigners to own property in Indonesia, as a PT PMA can own land and property either through a local nominee or a local company.

PMA stands for “Penanaman Modal Asing” in Indonesian, which translates to “Foreign Capital Investment” in English. It refers to a company that is fully owned by foreign investors and operates in Indonesia. PMA companies are established in Indonesia to conduct business activities and are governed by Indonesian laws and regulations.

As a foreign national, you cannot directly own land in Indonesia, but you can own a building on land that you lease from the government or a local owner. This can be done by obtaining a Hak Guna Bangunan (HGB), or Right to Build and Own. This type of ownership allows you to construct and own a building on a piece of land, but not the land itself.

Hak Guna Bangunan (HGB) is a form of land ownership in Indonesia that allows the holder to construct and own a building on a piece of land, but not the land itself. It is granted by the government for 25 years and is renewable for another 25 years. It’s a popular option for foreigners looking to buy property in Indonesia, as it allows them to own a building on land leased from the government.

It’s important to note that HGB holders must pay property taxes and other costs associated with the building and maintenance of the property. They cannot transfer or sell the property during the lease period.

During the transfer of land and construction rights in Indonesia, both purchasers and sellers are required to pay specific taxes. Sellers must pay income tax on the sale of land or property, and purchasers need to pay the acquisition tax on land and building rights.

1. Sales Tax (PPH) Owed by Sellers

Sellers must pay for the income tax from the transfer of their land or building rights per the Indonesian Law GR 34/2016:

  • 1% for simple flats or simple houses for their transfer of land or building rights
  • 2.5% for regular structures, excluding simple homes or apartments for the transfer of their building rights

2. Acquisition Tax (BPHTB) Payable by Buyers

Acquisition duty is imposed on buyers for their acquisition of land or building rights. The rate is 5% and is determined based on the assessed or transaction value.

3. Rental property tax

This tax is imposed on property owners in Indonesia who rent out their property to tenants. It is calculated based on the gross rental income:

  • For tax residents in Indonesia, the Lease Tax is levied at 10% of the Lease Value.
  • For non-tax residents, the Lease Tax due is 20% of the Lease Value.

Read more about rental property tax in Indonesia

Once you’ve found your dream home, you must check the property ownership background documents. 

This step is critical for ensuring legal ownership of the property you are about to purchase. It will also detail disagreements, debt payments, current property status, and ownership.

The following are important documents that you must verify with the property owner:

  1. Kartu Tanda Penduduk (Indonesian Identity Card) of the owner/seller
  2. Kartu Keluarga (Family Card)
  3. Marriage Certificate or Death Certificate (depending on the circumstances of the couple) 
  4. Original certificate of land ownership
  5. PBB tax payment, referred to as SPPT PBB
  6. Owner/seller’s tax number (NPWP)

Steps to Buy Property in Bali:

  1. Research the market:  Before making any decisions, research the Bali property market to understand the range of prices, locations, and property types. This information will help you determine your budget and focus your search.
  2. Find a reputable real estate agent: Finding a reputable real estate agent with experience in helping foreigners buy property in Bali is crucial. They will be able to guide you through the process and help you navigate any legal or cultural differences. Thankfully we have researched which real estate agents are reputable from our community experts to help you.
  3. Get a local sponsor:  Foreigners are not allowed to own property outright in Bali. You will need a local sponsor, such as an Indonesian citizen or a local company, to hold the property in their name. Your real estate agent can assist with this arrangement.
  4. Conduct a property survey:  Before making an offer, ensure the property is free from legal disputes or encumbrances with a thorough property survey. This step confirms the property’s structural integrity and compliance with zoning requirements.
  5. Hire a lawyer: Hiring a lawyer with experience in property law in Bali is essential. They will be able to guide you through the legal process and ensure that all the necessary documents are in order. Not sure where to find one? Our advisory service partners are here to help you.
  6. Sign the purchase contract:  After completing the necessary steps, you can sign the purchase contract and transfer the funds to the seller.
  7. Register the property:  Post-purchase, register the property in the name of your local sponsor. Your lawyer will facilitate this process.
  8. Secure all documents:  Keep all important documents, such as the purchase contract, property survey, and registration papers, in a safe place.

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