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Great news! Foreigners can now legally own property in Bali. But with so much conflicting information out there, it’s easy to feel lost in the process.
Some say you need a local sponsor. Others claim you have to marry an Indonesian. And some even argue that leasehold is just throwing money away.
If you’re considering buying property in Bali—whether it’s for your dream villa, early retirement, or a smart investment—you’re in the right place.
We’ll guide you through the legal ways foreigners can own property in Bali—either through leasehold or by establishing a PT PMA. Let’s find out which path suits your plan best.
Contents
Key Takeaways
- Foreigners can legally own property in Bali through two main options: leasehold (Hak Sewa) or by setting up a PT PMA (foreign-owned company), each offering different levels of control and flexibility.
- Leasehold is the most common method, allowing foreigners to lease land or villas for 25–30 years (renewable), with full legal use and rights to rent, sell, or live on the property.
- PT PMA allows for “freehold-like” ownership via legal titles (Hak Guna Bangunan / Hak Pakai) and is ideal for long-term investments or running property businesses—but it requires compliance and a capital commitment.
- Nominee ownership is risky and illegal, offering no legal protection—foreigners are strongly advised to avoid this route and follow the correct legal process.
See What’s on the Market: Available Bali Villas for Sale – Leasehold and Freehold
Property Ownership Laws for Foreigners in Bali
Indonesian law doesn’t allow foreigners to directly own land under their name. But that doesn’t mean you’re out of luck.
In fact, you have two solid, legal options: leasehold and PT-PMA. Both are commonly used by expats, investors, and developers in Bali.
1. Leasehold (Hak Sewa)
Leasehold is the easiest and most popular route for foreigners. You lease the land or villa for a fixed term—typically 25 to 30 years—with the option to extend, depending on your agreement with the landowner.
It’s completely legal, and you’ll have full control over the property.
It’s also more affordable than freehold, and the process is faster and simpler, making it a common first step into Bali’s property market.
How leasehold works:
- You sign a lease agreement with the landowner
- You pay the full lease amount upfront
- You can live in the villa, rent it out, or even sell the remaining lease later
- You own the building, not the land, and your name is on the lease
As long as the contract is properly drafted, you’re protected by law.
However, some foreigners still hesitate when it comes to leasehold. We often hear our clients ask, “Why spend all that money if I don’t even own the land?”
If “not owning the land” worries you, think of it this way: with a leasehold, you have the flexibility to exit the market when the time is right—without the long-term obligations that come with full ownership.
And when compared to Bali’s strong rental returns, the numbers usually work out in your favor.
Read More: What Happens After the Lease Expires? Bali Leasehold Property Guide
2. PT PMA (Foreign-Owned Company)
If you’re thinking bigger—like building a villa complex, running rentals, or making long-term investments—a PT PMA might be a better option. This is the only legal way for a foreigner to have “freehold-like” control of a property
A PT PMA is a legal Indonesian company that you, as a foreigner, can set up. Through this company, you can gain:
- Hak Guna Bangunan (Right to Build)
- Hak Pakai (Right to Use)
These rights allow you to build, own, and use property for up to 80 years (30 years + 20-year extension + another 30-year extension).
That said, there are a few important things to keep in mind:
- HGB (Hak Guna Bangunan) must be renewed every 30 years.
- Your company must remain active and compliant with local regulations.
- A capital commitment of IDR 10 billion (approx. USD 650,000) is typically required to establish a PT PMA. This amount doesn’t need to be paid upfront, but it must be reflected in your business plan and operations.
Read More: Cost of Property in Bali: What You Need to Know (2025)
Can Foreigners Buy Freehold Property in Bali?
No, foreigners cannot legally hold a freehold (Hak Milik) title under their name. That title is reserved for Indonesian citizens only. But having PT PMA gives you “freehold-like” control, as mentioned above.
You might also hear about the nominee system—where an Indonesian citizen holds the property title in their name, and you make a private agreement behind the scenes.
Sounds simple, right? It’s not.
This setup is risky and not protected by law, and you could lose everything if the nominee decides to walk away or faces legal trouble. And yes, this has happened to many buyers.
So, it’s better to set up a PT PMA instead. While the title is under your company’s name, you retain full control as the legal owner and director of the company.
We’ve compiled several common mistakes foreign investors make when investing in property in Bali. You may want to check them out to avoid falling into the same trap: Common Mistakes Foreigners Make When Investing in Bali Real Estate
Steps to Buy Property in Bali as a Foreigner
So, how can you buy a villa in Bali legally? The process is actually more straightforward than most people think. Let’s break it down:
1. Choose the Right Ownership Structure
Will you go with leasehold, or are you setting up a PT PMA? Your decision will depend on your goals, whether it’s for personal use, investment or development.
2. Do Your Due Diligence
Never skip due diligence. It ensures your property is legally sound and free from issues like outstanding debt or multiple ownership claims.
This step can be time-consuming and complex for foreigners, but it’s usually handled by the local property agent you hire.
At Bali Villa Realty, we usually handle this process for our clients. We check all the important documents, such as land certificates, zoning, ownership history, and building permits.
We ensure everything is verified within two weeks before you commit.
3. Work With a Trusted Notary or Legal Advisor
They’ll draft or review the sales or lease agreement to ensure it’s legally binding and safe.
If you don’t speak Indonesian, they’ll walk you through everything in English so you know exactly what you’re signing.
4. Sign the Agreement
Once everything checks out, both parties sign. Payments are made based on the agreed terms, either in full or in installments.
5. Register and Pay Taxes
Your agent or notary will register the transaction and handle all applicable taxes, like land acquisition tax and income tax.
Conclusion: Ready to Buy Your First Villa in Bali?
Foreigners can legally buy and own property in Bali—through proper channels like leasehold or by setting up a PT PMA. We strongly advise against taking shortcuts like nominee agreements, as they carry serious legal risks.
If you need help ensuring the process is safe, legal, and seamless, we’re here for you!
Whether you’re looking to buy, lease, or build, we’ll guide you every step of the way—based on your goals, needs, and budget.
No matter where you are in your investment journey, we’ll provide clear, honest information to help you move forward with confidence.
If that sounds like what you need, click the link below to book your free, customized investment plan in Bali.
FAQ
1. Is it worth buying property in Bali?
Yes, property investment in Bali can be very rewarding. The island sees steady demand, especially for rentals, which means owners can earn strong returns.
2. Is Bali cheap to buy a house?
That depends on the location and type of property. Some regions like Tabanan or Seseh are still relatively budget-friendly, but hotspots like Canggu and Seminyak are becoming more expensive.
3. How much is a villa in Bali to buy?
Villa prices vary depending on the area, demand, and available facilities. For example, villas in Kuta start at around $300,000; villa in Seminyak can cost about $500,000; while similar homes in Ubud average around $250,000.
