The Complete Guide in Buying Property in Bali

Delve into a wealth of knowledge and expert advice, empowering you to make informed decisions while navigating the enchanting real estate landscape of Bali.


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Paradise Awaits
Investing in Bali real estate means owning a piece of this paradise, where every morning is greeted by the gentle rustle of palm trees and every evening adorned with awe-inspiring sunsets.
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With our deep-rooted expertise and comprehensive knowledge of the local property landscape, we’ve fine-tuned the process of buying property in Bali.

Frequently Asked Questions

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

Bali’s property market is also advantageous because of its lower cost compared to other popular destinations like Sydney, London, and New York. Bali’s affordable options make it an ideal location for investors who may not have a large capital to invest in more expensive locations.

In addition, the government in Bali has implemented policies aimed at attracting foreign investment, which has resulted in increased interest from foreign investors. Bali’s property market has also seen a growing number of property developments, especially in the luxury segment.

A freehold property refers to land that is owned outright by an individual or entity without any time limit attached to its ownership. In other words, once you purchase a freehold property in Bali (or anywhere else), you own it indefinitely until you decide to sell it or pass it down as inheritance.


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


  • Higher initial cost in comparison to leaseholds
  • Responsibility for maintenance falls solely on the owner

Leasehold refers to properties where individuals have purchased rights from another party (usually the government) for a specific period of time. These typically last 25 years but can go up to 99 years. After this period they revert back to the original ownership completely unless it’s renewed at additional costs.


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


  • Restrictions apply regarding the use of and modifications to the property
  • Potential risk associated with renewing leases upon expiration 

Learn more about Freehold vs. Leasehold Properties

No, it is not necessary for foreigners to register a PT PMA (a foreign-owned limited liability company) to acquire a property in Indonesia. However, it is one of the safest ways that a foreigner can own property in Indonesia, as PT PMA can own land and property 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. You can do this 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 a period of 25 years and it 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 that they lease 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, and they can’t transfer or sell the property during the lease period.

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

3. Rental property tax
a tax that is imposed on property owners in Indonesia who rent out their property to tenants. The tax is calculated based on the rental income earned from the property.

Rental property tax in Indonesia is calculated based on the gross rental income earned from the property. Rental income or Lease tax is levied in the amount of 10% of the Lease Value for tax residents in Indonesia. For non-tax Residents, the Lease Tax due is 20% of the Lease Value.

Read more on 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, called SPPT PBB
  6. Owner/seller’s tax number (NPWP)
  1. Research the market: Before making any decisions, it is important to research the Bali property market to get a sense of prices, locations, and property types. This will help you to determine your budget and narrow down 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: As a foreigner, you are not allowed to own the property outright in Bali. You will need to have a local sponsor, such as a local Indonesian citizen or a local company, to hold the property in their name. Your real estate agent should be able to assist you with this process.

  4. Get a property survey: Before making an offer on a property, it is important to get a property survey to ensure that the property is free from any legal disputes or encumbrances. This will also help to ensure that the property is structurally sound and meets any 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: Once all the necessary steps have been completed, you can sign the purchase contract and transfer the funds to the seller.

  7. Get your property registered: After the purchase is complete, it is important to register the property in the name of your local sponsor. Your lawyer will assist you with this process.

  8. Keep all the paperwork: Such as the purchase contract, property survey, and registration documents, in a safe place.

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