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Many Australians are choosing Bali as an alternative place to live, whether to build a private home or enjoy a slower-paced lifestyle during retirement.
One reason for this is the significant increase in Australia’s housing value, which has made it hard for 9 out of 10 people to afford a home there.
So, what about Bali? Can Australians buy property in Bali?
In this article, we’ll explore the property landscape in Bali in 2025 and its potential for Australians looking for a new place to call home. Let’s dive in!
Contents
Key Takeaways
- Australians can buy property in Bali if they follow local laws, usually through a PT PMA (foreign-owned company) or by using a leasehold agreement.
- Buying from Australia involves key steps: research location and budget, set up legal structure, view properties, conduct due diligence, sign agreements, and complete the transfer through a notary.
- Required documents include a valid passport, residency permit, proof of income, and property-specific papers; extra costs like taxes, notary fees, and agent fees should be budgeted at 5–10% of the purchase price.
Explore Top Villa Deals: Available Bali Villas for Sale – Leasehold and Freehold
Can Australians Buy Property in Bali?
Yes, Australians can buy property in Bali, as long as they follow the local laws.
Usually, countries have special agreements that decide if foreigners can own property. But for Australians, there’s no such deal with Indonesia.
This means if you’re from Australia and want to invest in Bali, you’ll need to follow the same rules that apply to all foreigners.
Still, Bali’s property market is booming. Since the pandemic, sales have surged, with both locals and foreigners buying.
Hotspots like Seminyak, Canggu, Ubud, and Nusa Dua remain top choices for overseas investors.
Read More: 10 Best Areas to Invest in Bali Real Estate 2025
How to Buy a Villa in Bali from Australia
Buying property in Bali as an Australian involves several steps, and understanding each is crucial. Here’s a breakdown to clarify things:
1. Research Your Location, Budget, and Property Type
Before anything else, decide where in Bali you want to buy.
Each area offers something different. For example, Canggu is popular with digital nomads, Seminyak is known for luxury and nightlife, Ubud is quiet and cultural, and Uluwatu offers dramatic cliffside views.
Don’t forget to set a realistic budget based on your financial plan and the market prices.
Also, decide if you want a villa, apartment, or land for development. This early clarity will save you time later.
2. Set Up a PT PMA (If Buying Through a Company)
Foreigners can’t directly own freehold property in Bali, but you can buy under a PT PMA (Penanaman Modal Asing), which is a foreign-owned company structure.
To set one up, you must register through the Indonesian Investment Coordinating Board (BKPM). You can handle this yourself if you understand the process, but most investors hire an experienced agency or legal consultant to avoid delays and mistakes.
If you’d prefer a simpler path, leasehold could be the way to go. It’s a popular choice for Australians and many other foreign buyers.
Read More: What Investors Must Know About Leasehold Investment in Bali
3. Shortlist and View Properties
Once your legal structure is ready (or if you’re buying leasehold directly), work with a reputable real estate agent to create a shortlist of properties that match your goals.
Visit each property in person if possible — photos and videos can be misleading. Pay attention to location, access roads, building quality, and surroundings.
4. Conduct Due Diligence
This step is critical. Verify that the seller holds a Certificate of Property Ownership (Sertifikat Hak Milik) or Lease Agreement, and ensure there’s a Building Approval document (PBG).
Also, check zoning regulations to ensure the property can be used for your intended purpose. A good notary or lawyer can handle these checks for you.
Read More: Due Diligence in Real Estate: Meaning, Checklist and Report Example
5. Sign the Purchase Agreement and Pay the Deposit
Once due diligence is complete, sign the Purchase Agreement (Perjanjian Pengikatan Jual Beli) in front of an authorised public notary.
This contract outlines the price, payment terms, and conditions. You will also pay the agreed deposit, typically 10–30% of the purchase price.
When all payments are made, you’ll sign the Sale and Purchase Deed (Akta Jual Beli) in front of the notary.
The notary will then submit the required documents to the National Land Agency (BPN) for the official transfer of rights.
6. Receive Certificates and Final Documents
After the transfer is registered, you’ll receive all legal documents—including the property title (HGB or HP for PT PMA, or lease agreement for leasehold), building permits, and the final signed Sale and Purchase Deed.
Keep these documents safe, as they are proof of your legal ownership or usage rights in Bali.
Legal Basics for Australian Investors in Bali
If you’re an Australian looking to invest in Bali, you’ll need to understand the legal setup to ensure everything runs smoothly.
1. PT PMA (Foreign-Owned Company)
This is a type of company that lets foreigners legally own property in Indonesia. Through a PT PMA, you can get:
- Hak Guna Bangunan (HGB): Right to build on land for up to 80 years.
- Hak Pakai (HP): Right to use existing property for 25 years, with renewals up to 70 years.
Setting up a PT PMA takes time and paperwork, but it’s the proper route if you want to own property under your name.
2. KITAS (Temporary Stay Permit)
If you plan to stay longer than 60 days at a time, you’ll need a KITAS. This is your residency permit while living in Bali.
Read More: Indonesia Bridging Visa for a Longer Stay in Bali: Full Tutorial to Apply
3. Pondok Wisata (Rental License)
Planning to rent out your villa to tourists? You’ll need a Pondok Wisata license. This gives you the legal right to run your property as a rental business in Bali.
Documentation and Fees for Australians Buying Property in Bali
Required Documents
If you’re an Australian looking to buy property in Bali, you’ll need to prepare some paperwork:
- Residency Permit (KITAS or KITAP): Needed if you’re staying in Indonesia long term.
- Valid Passport: Your Australian passport with a valid visa.
- Proof of Income: Bank statements or other documents showing you can afford the purchase.
- Other Supporting Documents: This depends on the property type. For example, building plans, land certificates, or permits if required.
Pro Tip: Work with a trusted notary or agent in Bali. They’ll make sure you have the right documents before you sign anything.
Taxes and Fees
Beyond the purchase price, you’ll also need to budget for extra costs:
- Transfer Tax: Paid when the property’s ownership is officially transferred.
- Real Estate Agent Fees: If you buy through an agent, they may charge a commission or service fee.
- Notary Fees: For preparing and registering all the legal documents.
- Currency Exchange Fees: If you’re sending money from Australia, your bank or money transfer service will take a small cut.
Pro Tip: Set aside around 5–10% of your budget for these extra costs, so there are no surprises
What Makes Bali a Profitable Location for Australians to Invest in Real Estate?
Besides its beautiful view, Bali is also a great location to invest in property for Australians. Some of the reasons are:
1. Double Tax Agreement (DTA) with Indonesia
The Australian and Indonesian governments agreed to simplify taxes for people who earn money in both countries. This is called the Double Tax Agreement (DTA). It helps to ensure you don’t have to pay taxes twice on the same income.
The agreement explains which country can tax different types of income, like your salary or business earnings. Only the country where you live will tax you for some income.
But remember, there are special rules for some kinds of income.
Talking to a lawyer to get all the details right is a good idea. They can help you understand the agreement better and ensure you pay the necessary taxes.
This way, you can avoid trouble and keep your taxes as low as possible.
2. Climate and Affordable Living
Bali is a top choice for Australian expats thanks to its warm weather, beautiful beaches, and rich culture.
Bali offers an appealing lifestyle with a lower cost of living than many countries, allowing residents to enjoy luxury living at a fraction of the cost.
According to LivingCost.org, the average monthly cost of living in Bali in 2025 is around $1071 (for one person and with rent).
That’s nearly the same as the global average cost of living—ranking 5,364th out of 9,294 worldwide and the highest among 82 locations in Indonesia.
If you’re considering investing in property, places like Seminyak, Canggu, Ubud, and Nusa Dua are worth exploring. These areas are especially welcoming to foreign investors right now.
3. Political and Economic Stability
It’s also important to think about how stable Bali is in terms of politics and economy. You wouldn’t want to buy a property and have problems selling it later or having trouble withdrawing money from the bank.
According to the current report of Badan Pusat Statistic, the number of monthly foreign visitor to Bali is increasing from the last 3 month (March to May 2025) as shown below. The increase is around 30%.
While the final data for 2025 isn’t available yet, a report by SAS Bali showed that in April 2024, Australian tourists remained the largest group of international visitors to Bali, accounting for 23.35% of total arrivals.
They were followed by tourists from India (8.78%), China (6.98%), France (5.24%), and the United Kingdom (4.93%).
This shows that Bali remains an ideal and desirable place for Australian citizens to live.
Conclusion: One Step Closer to Your Dream Villa in Bali
Australians can own property in Bali—as long as they follow local laws. With Bali’s lower cost of living, you can build your dream home and embrace a slower, more relaxed lifestyle.
Even better, your villa can be a smart investment that delivers high returns. But to make it work, you’ll need to understand the rules and plan every step carefully.
Still have questions? Our team is ready to guide you through your first Bali investment, step-by-step.
Tap the button below for a free, no-obligation chat with our advisor today.
FAQ
1. Can Australians live in Bali permanently?
Yes. Australian citizens can live in Bali long-term by obtaining the appropriate visa, like Retirement Visa or Investor Visa.
2. Can you get a mortgage in Bali as an Australian?
Foreigners can get a mortgage in Bali, but the process usually has stricter rules and requirements than it does for locals.
3. Can an Australian build a house in Bali?
Yes. Australians are allowed to build houses in Bali, but they must follow Indonesian property laws. This usually involves using a leasehold agreement or entering a legal partnership with an Indonesian citizen or company.
4. Is buying property in Bali a good idea?
Yes. Bali’s real estate market offers strong investment potential. Rental yields typically range from 8% to 12% per year.
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