How Foreigners Can Legally Buy Property in Bali (2026)

Disclaimer: This article is for informational purposes only. We recommend speaking with a senior advisor before making any final decisions.

Key Takeaways

Foreign nationals can legally buy property in Bali, but only through ownership structures other than freehold (Hak Milik).

Non-citizens have several legal ways to secure property rights in Bali. These include buying a leasehold interest, qualifying for a residential Right to Use (Hak Pakai), or investing through a PT PMA (a foreign-owned Indonesian company). Each option serves a different purpose.

However, an individual foreigner cannot directly hold Hak Milik, Indonesia’s freehold land title, in their own name.

Understanding these differences is important. Bali properties are sometimes advertised with terms like “foreign ownership,” “freehold for foreigners,” or “80-year ownership,” but the legal rights behind these offers can vary a lot.

This guide explains the main property options for expats in Bali in 2026, the buying process, common mistakes to avoid, and a rough breakdown of the costs and budget for owning a villa.

Legal Ways for Foreigners to Buy or Invest in Bali

Foreigners can legally participate in the Bali property market, but not everyone has the same rights. The best structure depends on your purpose, residency status, investment timeline, intended use, and willingness to handle company requirements.

• Hak Sewa (Leasehold): A popular and flexible option for most private buyers and investors buying villas for lifestyle or investment purposes. You don't have to provide KITAS for buying leasehold.
• Hak Pakai (Right to Use): Often recommended for people who want to own residential property under their personal name. You need to own a KITAS/KITAP to acquire this.
• Hak Guna Bangunan (HGB) via PT PMA: Commonly used for larger-scale commercial property investment or property business development.
• Hak Milik atas Satuan Rumah Susun (Strata Title): A structure that allows you to purchase eligible apartment or condominium units. The project's legal structure and underlying land must be checked carefully.

Our honest advice is to think about “What legal right am I getting, from whom, for how long, for what purpose, and how can I exit?” before buying. These questions are key to investing successfully in Bali real estate.

Understanding Indonesian Property Rules: The Basic Agrarian Law

Article 21 of Indonesian Law No. 5 of 1960 (the Basic Agrarian Law) states that the highest form of land ownership is Hak Milik or Freehold Title. Only Indonesian citizens can hold this title, so foreigners cannot directly own land under Hak Milik in their own name.

The law also recognizes other rights, such as Hak Guna Bangunan, Hak Pakai, and Hak Sewa. Each of these has its own legal features, which we'll explain in detail later. Government Regulation No. 18 of 2021 and Minister of Agrarian Affairs and Spatial Planning Regulation No. 18 of 2021 further explain the rules for HGB, Hak Pakai, and foreign residential ownership.

Consider these rules, along with project-specific title documents, immigration requirements, spatial planning rules, and transaction documents, to ensure a smooth purchase.

Why Can’t Non Indonesian Own Hak Milik Directly?

Hak Milik is often called freehold because it has an expiry date. It can be transferred, inherited, and used as security, as long as it follows Indonesian law. This means a foreigner cannot just go to a notary, buy a Hak Milik villa, and get the certificate in their own name. A PT PMA also cannot own Hak Milik.

If a foreign buyer is told a property is “freehold,” they should ask what legal structure will be used instead of direct Hak Milik ownership.

So, Why are Some Villas Listed Online as Having a “Freehold” Title?

A villa listed as “freehold” online might be Hak Milik land, which only an eligible Indonesian can buy directly. Foreign buyers might be offered a lease, a conversion to Hak Pakai, or an HGB structure through a company. These options are not the same.

Always keep in mind that the property's legal status matters more than how it is marketed.

​Leasehold (Hak Sewa): Ideal for Villa Investments, Holiday Rentals, Seasonal Stays, and Small Businesses

Leasehold (Hak Sewa) is the most popular and flexible option for foreign investors who want to buy a villa in Bali as a second home or as an investment.

With this structure, an expat leases land or a building from an Indonesian landowner for a set period through a lease agreement. Have a lawyer review the contract before signing, as the leasehold depends on the contract’s terms.

Duration: Leaseholds usually last 25 to 30 years and can often be extended up to 50-80 years in total. Make sure the extension terms are clearly written and included in a notarized agreement from the start. Check our guide to learn more about renewing lease agreement.

Best For:

• Villa investment, especially holiday rental properties
• Seasonal expats who visit Bali but do not live on the island permanently
• Small-scale businesses such as cafes, restaurants, boutiques, or coworking spaces

Requirements and Conditions:

• A KITAS or KITAP is not required if the property is only used for holidays or occasional stays. A valid passport is enough.
• The lease agreement should be made through a notarized deed, known as an Akta Sewa Menyewa, for stronger legal protection.
• The full lease value is usually paid upfront for the agreed period.
• Extension rights, renewal terms, and future price formulas must be clearly written in the initial contract.
• For commercial use, such as villa rentals or business operations, you must first check zoning, permits, business licenses, and operational requirements.

Advantages:

• Simpler and faster process compared to Hak Pakai or setting up a PT PMA
• Flexible option for short- to mid-term investment
• Lower entry cost compared to some corporate ownership structures
• Easier to find in both emerging areas and high-demand investment locations
• Allows renovation, building, or interior changes during the lease period, as long as they follow the contract, zoning, and permit rules
• Lease rights can often be resold or assigned to another party before the contract expires, if allowed in the agreement
• Easier exit strategy compared to more complex corporate ownership structures
• Can support villa rental investment when the proper permits and licenses are in place

Disadvantages:

• The value of the investment decreases as the lease period gets closer to expiry
• When the lease ends and is not extended, the land and any buildings on it generally return to the Indonesian landowner
• If the extension clause is weak or unclear, the landowner may refuse to extend the lease or request a much higher renewal price
• If the landowner faces legal or debt issues, there may be additional risk, although a valid lease agreement can help protect the tenant’s rights during the agreed lease period

Helpful Reads About Leasehold in Bali:

• Freehold vs Leasehold Bali Property: Which One Is Better for Investors?
• What Happens After a 99-Year Lease on Your Bali Villa Expires?
• How Long Can You Really Lease in Bali? Unlock the Facts

Hak Pakai (Right to Use): Ideal for Personal Residential Homes in Bali

Hak Pakai lets eligible foreign individual own residential property in Bali. To qualify, you need the right immigration documents. The property must also meet rules about its type, use, price, size, and how many you can own.

Duration: Under PP No. 18 of 2021, Hak Pakai is usually granted for 30 years initially. You can extend it for 20 more years, and then renew it for another 30 years, for a total of up to 80 years.

Best For:

• Residential villas
• Retirement homes
• Personal use property

Requirements and Conditions:

• People from Australia, UAE, Europe, the US and more are generally allowed to own landed houses or apartment units under this structure.
• Foreign buyers must have a valid immigration document or stay permit, in line with the latest applicable regulations.
• The property must also meet the minimum purchase price requirement, which varies depending on the location and property type. In Bali, the minimum price is generally IDR 5 billion for landed houses and IDR 2 billion for apartment or condominium units.
• Expats are generally limited to one land plot or residential unit, with a maximum land size of 2,000 square meters, unless special conditions apply.
• For land location, Hak Pakai can be issued over state land, Hak Milik land through an agreement with the landowner, or Hak Pengelolaan (HPL) land.
• Hak Pakai can be transferred, sold, or inherited by another party who meets the legal requirements. If a foreign owner passes away, heirs may inherit the right, provided they meet the applicable legal requirements in Indonesia.

Advantages:

• The official legal route to hold residential property rights in Indonesia as a foreigner
• Can be sold, transferred, or inherited
• Certain Hak Pakai certificates may be used as bank loan collateral
• Helps you avoid the legal risks of nominee arrangements

Disadvantages:

• Non-citizen buyers may have fewer property options due to minimum price rules
• Property quota and land size limits apply
• Heirs must also meet the legal requirements to inherit the property
• If the heir does not qualify, the property right may need to be transferred within the required legal timeframe

Read More: Do You Need a Specific Visa to Buy a Villa in Bali?

Hak Guna Bangunan (HGB) via PT PMA - Best for Long-Term, Large-Scale investments

If your Bali investment goal is to develop a large project or run a big accommodation business, setting up a PT PMA is usually the best option.

With this setup, the company can hold the property rights and use them for business, as long as all company, zoning, permit, and license requirements are met.

Keep in mind that HGB is not the same as freehold ownership. Still, it offers stronger and more organized rights than a standard leasehold, especially for commercial investments.

Duration:

• HGB is usually granted for 30 years at first. You can extend it for another 20 years and renew it again for 30 more years, for a total of up to 80 years.
• A PT PMA does not have a set ownership period. As long as the company stays active, follows Indonesian law, and submits regular reports like the Laporan Kegiatan Penanaman Modal (LKPM), it can keep holding the property.

Best For:

• Large-scale investments such as villa complexes, housing estates, beach clubs, hotels, resorts, and apartments
• Property developers
• Long-term commercial investment under a company structure

Requirements and Conditions:

• Must establish a PT PMA and comply with company registration, investment, tax, licensing, and reporting requirements
• The land must also match the correct land zoning and intended business use

Advantages:

• Provides a strong legal structure for commercial property investment
• The HGB certificate can be issued under the company name
• May be used as collateral for bank financing for foreigners in Indonesia, depending on the bank’s requirements
• Makes it easier to apply for commercial permits, such as hotel or Pondok Wisata licenses
• Can support an investor KITAS application if the company meets the required conditions
• May offer stronger resale value, especially when the asset is legally structured and properly documented

Disadvantages:

• Requires a larger setup and investment commitment compared to standard leasehold
• Company administration, licensing, tax, and reporting obligations can be complex and time-consuming
• Regular compliance is required to keep the PT PMA active and legally valid
• HGB extension or renewal may involve additional costs, depending on the land value and applicable rules at the time

Hak Milik atas Satuan Rumah Susun (Strata Title) - The Less Common Route to Own Bali Properties

Expats can buy luxury apartments or condominium units in Indonesia under the Omnibus Law and related regulations, such as PP No. 18 of 2021. However, this option is less common in Bali, where villas are more popular than hotels, apartments or condo. Also, just calling a unit an “apartment” does not guarantee it is legally available for foreign ownership.

Even so, apartments can appeal to certain groups, such as digital nomads or people who want practical housing without the hassle of managing a villa.

If you are interested, make sure your legal review covers the unit’s title, the land it sits on, the developer’s authority, building approvals, management setup, service charges, price thresholds for foreign buyers, and any limits on transfer or use.

This type of ownership does not give you permanent rights to the land under the building. Instead, you own the apartment or condominium unit itself, while the land is tied to the main title of the building.

Duration: The ownership period matches the main land title of the apartment or condominium building. This can often last up to 80 years, with an initial 30-year period, a 20-year extension, and a 30-year renewal. When this period ends, the apartment owners and residents' association can apply together for an extension with the National Land Agency (BPN).

Requirements and Conditions:

• Foreign buyers must have valid immigration documents and a legal basis for staying in Indonesia, such as a valid passport with KITAS, KITAP, Golden Visa, or Second Home Visa.
• A minimum purchase price threshold applies and may vary by location and property type.
• This structure generally applies to eligible high-end apartments or condominium units that meet Indonesian regulatory requirements.

Advantages:

• The official SHMSRS certificate can be issued directly under the foreigner’s name as written in their passport
• The apartment unit may be inherited by an eligible foreign heir or resold to an Indonesian citizen
• Maintenance is simpler because shared facilities, security, cleaning, and building maintenance are usually handled by building management
• Many eligible apartment or condominium projects offer access to shared facilities such as swimming pools, fitness centers, parking, and other amenities

Disadvantages:

• Investment value depends heavily on the long-term condition and maintenance of the building
• Monthly service charges and sinking fund fees can be relatively high
• The availability of apartment and condominium projects in Bali may be more limited compared to other regions due to Bali’s building height restrictions
• If the main land title, such as HGB or Hak Pakai, expires and the extension process is not handled properly, unit owners may face administrative or legal complications.

How Do You Choose the Right Ownership Structure?

There isn’t one structure that is always the best. The right choice fits your needs, follows the law, and works well for as long as you plan to own the property.

For example, if you are a private buyer looking for a holiday home for ten to twenty years, a well-prepared leasehold might be a good fit. While developers, hotel investors, or those running several units usually need a PT PMA and HGB, along with the right licenses.

When you choose a structure, think from the start about how you will eventually exit. Consider:

• Who could buy your interest later?
• How much time will be left?
• Can you transfer the lease?
• Do you need to change the title?
• How a company can sell the land or shares?
• What taxes you might face?
• How inheritance will work?

Your budget and the location are important too. To get started, check at the current Bali real estate prices for each legal structure, compare the pros and cons of the recommended place in Bali for property investment.

What is the Process for International Buyers to Purchase Property in Bali?

Here are the main steps to legally buy a villa, land, or apartment in Bali as a non-citizen. The process usually takes 1 to 3 months.

1. Define Purpose, Budget, and Ownership Route

You should now understand the available ownership structures. Start your property purchase by choosing one ownership route that matches your purpose and budget.

If you want to use the property as a personal home or for a small rental, choose leasehold (no KITAS needed) or Hak Pakai (requires KITAS/KITAP). For a larger business or long-term commercial use, setting up a PT PMA is a better choice.

2. Identify Property and Confirm Zoning

Always check the property’s legal status to avoid disputes, fines, or permit problems later. This process, called due diligence, usually includes:

• checking land zoning
• verifying the land title and seller’s background
• reviewing permits like PBG, SLF, and any required business licenses.

A licensed local PPAT (land-deed notary) and, ideally, a separate lawyer will handle this process for you. You can find these services on your own or work with a real estate company that offers them, such as Bali Villa Realty.

Plan to spend about USD 1,500 to 3,000 on notary and legal services, depending on how complex your transaction is.

3. Sign Reservation / Letter of Intent and Pay Deposit

Sign an MOU or preliminary agreement (PPJB) and pay a deposit, usually 10–30% of the property price. For maximum safety, always hold your payment in a notary escrow account, not paid directly to the seller.

Make sure all agreements are drafted and witnessed by a qualified notary so they are legally valid under Indonesian law. Do not use illegal arrangements like nominee agreements, as they offer no legal protection and the nominee could take or sell your property without your permission.

4. Prepare and sign the Sale and Purchase Deed (AJB) or Lease Deed

The PPAT will draft the AJB (for Hak Pakai or HGB transfers) or Akta Sewa (for leasehold) in Indonesian. Both parties sign the documents before the PPAT once all conditions are met.

5. Pay transaction taxes and fees

Finally, complete the transaction by paying the remaining balance and all fees, such as BPHTB (buyer’s acquisition duty), PPh Final (seller’s income tax), and PPN (VAT). Taxes must be paid before the deed is executed or registered. For a detailed breakdown, see our Bali property taxes guide.

6. Register the Right at BPN

The PPAT submits the deed to the local land office for registration. For Hak Pakai, the local land office issues a new certificate in the buyer’s name. For leasehold, the notarized lease serves as the main proof of rights. Registration usually takes 2 to 8 weeks, but Hak Pakai can sometimes take 3 to 6 months.

7. Post-Completion Compliance

If you plan to build or renovate, make sure to get or update the PBG (building approval) and SLF (certificate of fitness). For rentals, ensure you have the right business licenses and are following tax rules.

Buying property is different from running a rental business. For more details, see our guide on operating a rental business in Bali.

Please note that these steps apply only to turnkey properties (villas, apartments) and land. Buying off-plan may involve different steps and considerations.

Read More: Can You Buy a Villa in Bali with Bitcoin? The Truth Behind the Hype

Make Your Bali Property Journey Easier

Many foreign buyers choose to work with a trusted real estate agent to simplify the buying process, save time, and reduce risk. Bali Villa Realty by iLot can help you at any stage of your property search.

We not only provide property listings, but also offer free legal and investment consultations, due diligence services, and help estimate your potential returns. You’ll also have access to villa management services from iLot Property Group to make caring for your villa easier.

Feel free to send us any questions at any time, and we’ll respond as soon as possible.

Conclusion

Although freehold (full ownership) is only available to Indonesian citizens, foreign expats can still legally invest in property through leasehold or PT PMA.

Still have questions? Feel free to ask us anytime, and we’ll help you understand your options clearly and confidently.

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