Bali has become one of the world’s most attractive destinations for property investment. And the good news is, foreigners can now legally own property here, even from abroad.
Whether you’re looking for a holiday villa, a rental investment, or a long-term home, this guide will walk you through the process step by step so you can invest in Bali with confidence.
Key Takeaways
- Foreigners can legally invest in Bali property using leasehold agreements or by setting up a PT PMA (foreign-owned company) with rights lasting up to 80 years.
- Benefits of investing abroad include portfolio diversification, currency protection, strong Bali rental yields (6–18%), lifestyle perks, and potential residency options.
- Steps to invest from overseas: define goals, choose the right location, secure financing (20%+ deposit), follow legal processes, and manage the property with local support.
Find Overseas Property for Sale: Available Bali Villas for Sale - Leasehold and Freehold
Is Buying Property Abroad a Good Investment?

Yes, definitely! Investing in property abroad comes with lots of benefits, such as:
- Portfolio diversification: If you already invest in things like stocks, owning property adds variety and helps spread the risk.
- Currency diversification: Buying property in another country can protect you from currency swings and even let you profit from favorable exchange rates.
- Higher rental income: You could earn more from Bali villa rentals than in your home country. The Bali real estate market offers ROI opportunities ranging from 6% to 18%.
- A vacation or retirement home: Besides being an investment, your family gets to enjoy a holiday home in one of Bali’s beautiful locations.
- A path to residency or even citizenship: In some cases, owning property can open doors to permanent residency or citizenship.
How to Invest in Bali Property Abroad

1. Define Your Goals
Before you even think about locations, the first thing we always advise our clients is to clarify their "why." Your reason for buying will guide every decision, from the type of property to the legal advice you'll need.
- Personal use: If you’re dreaming of a holiday home, focus on lifestyle—choose a spot you’ll love visiting, with the amenities that fit your needs.
- Investment: If profit is the goal, focus on the numbers. Look at areas with strong rental demand, potential for appreciation, and investor-friendly rules.
- Relocation: Planning to move? This is more complex, since your property will be your main home. Proximity to schools, healthcare, and community will matter most.
2. Find the Right Location
Once you know your goal, the fun begins—choosing where to buy. But don’t just follow your heart, also look at the data.
Key things to check:
- Economic stability: A safe and steady economy gives you confidence in your investment.
- Property laws for foreigners: Every country has its own rules, so know what foreigners can and can’t buy.
- Growth potential: New infrastructure, tourism growth, and business activity can all boost property values.
- Inflation & interest rates: Global inflation affects property prices differently by country. Some places may offer better deals now.
Read More: Which Area Dominated Bali’s Real Estate Market?
3. Financing Your Overseas Property
Foreign buyers have several ways to finance a property abroad:
- Overseas mortgage from your local bank
- Mortgage from a bank in the country where you’re buying
- Releasing equity from a property you already own
- Paying in cash
But how much deposit do you need for buying a property abroad? Typically, lenders require at least a 20% deposit for overseas properties, sometimes more.
Remember, always compare interest rates, fees, and tax rules before deciding. Research carefully to choose the option that fits your financial situation best.
Read More: Indonesian Property Loan for Foreigners Explained
4. Understand the Legal Side
This step is non-negotiable. Every country has its own process for property sales.
In Bali (and Indonesia generally), foreigners cannot directly buy freehold under their own name. You’ll need to use legal structures like Hak Pakai (Right of Use) or a PT PMA (foreign-owned company).
There are also several legal rules you need to follow to ensure your Bali villa investment goes smoothly. To make things easier, it’s best to hire an independent, English-speaking lawyer who specializes in foreign property ownership.
Your lawyer will conduct due diligence, review contracts, and make sure the title deed is clean and legitimate.
Read More: What Happens During Due Diligence Process When Buying Bali Property?
5. From Viewing to Closing
Once your finances and legal support are set, you can move forward with the purchase.
- View the property: We highly recommend visiting properties in person. If you can't, arrange for detailed virtual tours and have a trusted representative, like your lawyer or a surveyor, inspect it on your behalf.
- Make an offer: Your lawyer will help you submit the offer formally.
- Sign the Contract: Once accepted, you’ll sign a preliminary agreement and pay a deposit.
- Close the Deal: On the completion date, you make the final payment and sign the deed in front of a notary. Congratulations—you now own property abroad!
6. Managing Your Property from Afar
Buying the property is only step one. Managing it is just as important, especially if you plan to rent it out.
Here are some simple tips to make managing your property easier:
- Hire a property management: Hire a local company to handle maintenance, tenants, and rent collection.
- Manage taxes: Be prepared for property taxes and rental income taxes. Rates vary by country.
- Buy property insurance: Always have proper building and contents insurance to protect your investment.
Property Ownership Laws for Foreigners in Bali

As mentioned earlier, Indonesian law doesn’t allow foreigners to directly own land in their own 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 common way for foreigners to own property in Bali. You lease the land or villa for 25–30 years, with the option to extend based on your agreement with the landowner.
It’s fully legal, more affordable than freehold, and the process is quicker—making it a popular first step into Bali’s property market.
How leasehold works:
- Sign a lease agreement with the landowner
- Pay the full lease amount upfront
- Use the villa as you wish—live in it, rent it out, or sell the remaining lease later
- You own the building, not the land, but your name is on the lease
- A properly drafted contract gives you legal protection
Pros:
- Flexibility: You’re not tied down long-term; you can exit the market when it suits you.
- No heavy obligations: Unlike freehold, leasehold doesn’t come with permanent ownership responsibilities.
- Strong rental returns: Bali’s rental yields often make leasehold a profitable choice despite not owning the land.
Read More: What Happens After the Lease Expires? Bali Leasehold Property Guide
2. PT PMA (Foreign-Owned Company)
If you’re planning something bigger—like building a villa complex, running rentals, or making long-term investments—a PT PMA is your best option.
It’s the only legal way for foreigners to get “freehold-like” control in Bali. 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 stay active and compliant with local rules.
- A capital commitment of IDR 10 billion (~USD 650,000) is required. This isn’t paid upfront but must appear in your business plan and operations.
Best Place to Buy Bali Villa from Abroad
When buying property overseas, choosing the right platform is crucial. One website you can trust for buying property abroad is Bali Villa Realty by ILOT Property Bali.
We’ve helped many clients successfully purchase villas in Bali from abroad. One example is a client from Dubai who bought a villa without ever setting foot in Bali—watch their story here:
Bali Villa Realty is focused 100% on Bali real estate. We provide services tailored specifically to expats and investors:
- Curated Property Listings: Villas for sale and rent, in prime Bali locations like Canggu, Seminyak, Ubud, and Bukit.
- Legal Guidance: Assistance with leasehold, freehold alternatives (PT PMA, Hak Pakai), and compliance with Indonesian law.
- Investment Advisory: ROI projections, rental yield insights, and recommendations for profitable areas.
- End-to-End Support: From property tours to negotiations, contracts, and even post-purchase management.
Interested in learning more? Start today by getting a FREE customized investment plan for Bali through the link below.

Get a Customized Investment Plan in Bali
With over 15+ years in the market, here’s what we can do for you:
- Find the best location to invest in Bali.
- Reliable guidance on Bali’s property market and laws.
- Personalized strategy to maximize returns and meet your financial goals.
Common Pitfalls of Buying Property Abroad
While investing overseas has many benefits, it also comes with challenges:
- Currency risks: Exchange rate changes can affect purchase costs, rental yields, and resale value.
- Legal barriers: Some countries make it harder for foreigners to buy or have stricter regulations.
- Distance management: Handling a property from abroad is tough; you’ll likely need a reliable local agent.
- Tax complications: Double taxation and unfamiliar rules can lead to unexpected bills if not managed properly.
- Market volatility: Without local knowledge, you risk overpaying or struggling with low rental demand.
- Hidden costs: Fees and charges are often higher than expected, especially if you don’t know the local system.
Read More: Why Bali Property Investments Fail? Overlooked Reasons You Lose Profit
Conclusion: Ready to Buy Your First Villa in Bali?
Foreigners can legally buy property abroad to rent out through proper channels like leasehold or by setting up a PT PMA.
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.
Want to start investing in Bali property?
Have a quick chat with our real estate experts for personalized advice on your Bali investments. No commitment required.
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.
4. Do you pay tax on overseas property?
Yes, buying a villa in Bali comes with taxes. You’ll need to pay a one-time Property Acquisition Tax (BPHTB), usually around 5% of the transaction value (varies by region and property assessment). There may also be ongoing Land and Building Tax (PBB).