Buying land in Bali can offer many opportunities, whether you’re thinking about building a dream villa, creating a rental business, or securing a long-term asset.
But where do you start? What must you know to ensure your investment is secure, legal, and profitable?
If you’re a foreigner dreaming of owning land in Bali, this article is for you.
In this guide, we’ll explain everything you need to know as a foreigner buying land in Bali, helping you make informed decisions every step of the way. Let’s dive in!
Contents
Key Takeaways
- Foreigners can’t own freehold land, but legal options include Hak Pakai, leasehold agreements, and PT PMA (foreign-owned company) setups for long-term control and development.
- Zoning laws, access roads, land title verification, and building permits are critical to check before buying land to ensure it’s legal and buildable.
- The land-buying process includes due diligence, signing agreements, paying taxes/fees (~5%), and registering ownership with BPN (National Land Agency).
- Land prices vary by area (e.g., Seminyak/Canggu: $300–$1,500+/sqm), and buyers should work with legal advisors and trusted real estate agents to avoid scams or overpaying.
Can Foreigners Buy Land in Bali?
Yes, foreigners can buy land in Bali, but there are specific rules you need to follow.
In Indonesia, foreigners can’t own freehold land outright. That kind of ownership is reserved only for Indonesian citizens.
However, there are a few legal options for foreigners to secure long-term use of land:
1. Hak Pakai (Right to Use)
This is the easiest way for foreigners to own property in Bali. With Hak Pakai, you can lease land for up to 80 years—usually starting with a 30-year lease and then two possible extensions of 25 years each. You can build, live in, or rent a house but don’t technically own the land.
2. PT PMA (Foreign-Owned Company)
If you want more control, you can set up a PT PMA, which is a foreign-owned company. Through this company, you can own Hak Guna Bangunan (Right to Build). This allows you to build on and control the land for a long time.
This option is more complex and is usually best for business investments, like hotels or commercial spaces.
3. Leasehold Agreements
Another way is to lease land directly from an Indonesian landowner. These leases often last 25 to 50 years and may include an option to renew.
This is the most popular option for foreigners as it offers a lower entry point and simpler steps to buying land.
Read More: Freehold vs Leasehold: Which Ownership Type is Right for You?
How to Find the Right Land in Bali
When looking for the right land in Bali, especially as a foreigner, your priority should be safety and legality. You want to ensure that the land you purchase is legal, the process is transparent, and your investment is protected.
Here’s how you can find land safely and securely:
1. Work with Trusted Real Estate Agents
Source: Bali Villa Realty - Available villa for sale
A good real estate agent can help you navigate the legal landscape and avoid pitfalls. Look for agents with a solid track record who specialize in working with foreign investors, like Bali Villa Realty by Ilot Property Bali.
Our team often vet listings, ensuring the land titles are clear and the properties meet legal requirements.
2. Use Reliable Online Platforms
You can also explore trusted online platforms, such as social media, online community or a property page like Bali Villa Realty. These platform offer verified listings and cater specifically to foreign investors.
Always check for properties with freehold or leasehold titles that comply with Indonesian law.
3. Consult a Legal Expert
Even with a great real estate agent, you’ll want to work with a good notary or lawyer who understands Indonesian property laws.
They will ensure the land title is legitimate and your ownership rights are fully protected. They can also help with the due diligence process to ensure the land is free of legal issues or encumbrances.
4. Check Local Government Listings
Source: Bali BPN
If you’re looking for a more official route, check the Badan Pertanahan Nasional (BPN) or National Land Agency. They manage land titles and records, ensuring that the land you’re interested in is correctly zoned and has no legal complications.
If your goal is short-term, you may want to find land already in a tourism area, ready for a quick villa build or rental opportunity.
For long-term investors, consider looking in emerging areas where property values are expected to rise over time. Your investment could grow as infrastructure and development expand.
Pro Tip: The key to success is researching and working with professionals who know the local laws and can safely guide you through the process.
Checklist Before Buying Land in Bali
Buying land in Bali as a foreigner comes with its rules and regulations. Here’s what you need to know to make sure your purchase is legal and profitable:
1. Zoning Laws
Bali’s zoning laws are crucial to understand before you buy land. Different zones determine what kind of property can be built in a specific area:
| Zone Color | Usage | Description | Allowed for Building |
| Yellow Zone | Residential | Quiet areas with lower population density. | Yes |
| Orange Zone | Residential | Busier residential zones, closer to urban centers. | Yes |
| Red Zone | Commercial | Suitable for businesses like hotels, shops, or restaurants. | Yes |
| Pink Zone | Tourism | Ideal for vacation rentals or villas aimed at tourists. | Yes |
| Green Zone | Agricultural / Protected Land | Reserved for farming or conservation; building is not allowed. | No |
2. Access (Roads)
Accessibility is key. Ensure the land has access to well-maintained roads. Easy road access can significantly impact the property’s value and your ability to build or sell it in the future.
The Process of Buying Land in Bali
Buying land in Bali involves several steps to ensure the process is legal and smooth. Here's a breakdown of what to expect:
1. Finding the Right Land
First, you’ll need to locate the land that meets your goals, whether for building a villa, commercial property, or long-term investment.
Consider zoning laws, access to essential utilities like water and electricity, and whether the land is in a prime or developing area.
2. Hire a Notary and Legal Advisor
The next step is to hire a notary and legal advisor who can help you verify the land’s legal status. This includes checking the land title, ensuring it’s free of disputes, and confirming that the land is suitable for your intended use.
3. Conduct Due Diligence
Before proceeding, it’s essential to complete a due diligence process. This includes verifying:
- Zoning regulations: Make sure the land is zoned for the type of construction you plan to undertake (residential, commercial, or agricultural).
- Land title verification: Ensure the land title is clean and clear of disputes. Check with the Badan Pertanahan Nasional (BPN) to confirm the title’s legitimacy.
- Unpaid taxes: Confirm that no outstanding taxes or debts are tied to the land.
4. Sign the Agreement
Once you’ve found the right land and completed the due diligence, you’ll sign a sale and purchase agreement (PPJB) before a notary.
This agreement formalizes the transfer of the leasehold rights to you and includes all terms regarding the lease period, payment structure, and future extensions.
5. Pay Transfer Fees and Taxes
As part of the transaction, you’ll be responsible for paying certain taxes and fees, typically around 5% of the land’s sale value. Make sure to account for these costs in your budget.
6. Finalization of Leasehold
After the agreement is signed and the taxes are paid, the notary will register the leasehold with the BPN. Once the registration is complete, you’ll officially hold the land based on the ownership.
7. Obtain Permits
After acquiring the land, you’ll need to obtain any necessary permits for building, such as the PBG (previously known as IMB), which is the building permit required for new construction in Indonesia. This step is critical to ensure your villa or property complies with local regulations.
The land-buying process in Bali can be complex, but working with professionals can help you navigate your process hassle-free, even without you being in Bali.
Read More: Managing Your Bali Investment Property from Abroad: Expert Tips
How Much Does Land Cost in Bali?
How much does land cost in Bali? Land prices can vary depending on the location and other factors.
Your first step should be to do some research. Look at different areas and see how much land costs there.
One important thing is knowing the local land prices. Here are some common prices in popular expat areas:
- Hot spots like Seminyak/Canggu: $300 – $1,500+ per square meter
- Beach towns: $200 – $800 per square meter
- Inland villa areas: $100 – $500 per square meter
Land with good roads, utilities, and nearby stores and schools cost more. Plots near hospitals, international schools, and beaches sell for 20-30% higher prices.
There are also legal costs for expats buying land in Bali:
- Setting up foreign ownership: $3,000 – $5,000
- Fees for buying the land: $500 – $1,500
- Yearly property taxes: 0.5% – 2% of the land value
It is important to research, know the local market, and get expert help to avoid overpaying. You can simply check recent sale prices for similar lands nearby or work with a real estate agent like Bali Villa Realty.
A real estate company will help you understand fair prices, negotiate with the land owner, and check the legality of the documents. This way, you can get your dream property in Bali without any hassle.
Common Pitfalls of Buying Land in Bali
Here are some common mistakes to avoid when buying land in Bali:
- Not verifying the land title: Always confirm the title with a notary or through the BPN.
- Ignoring zoning laws: If the land isn’t zoned for residential or commercial use, you won’t be able to build legally.
- Underestimating costs: Additional costs like taxes, permits, and fees can add up. Make sure you factor these into your budget.
Understanding these crucial factors before buying land in Bali can help you make a well-informed decision and avoid costly mistakes.
Ready to Buy Land in Bali?
Investing in land in Bali can be rewarding, but it requires careful planning, due diligence, and local expertise. Hopefully, this guide helps you start planning your land purchase.
If you have any questions or need practical support, feel free to reach out to the Bali Villa Realty team by clicking the button below.
Our local experts will guide you through every step—whether it’s buying strategic land, building a villa, or turning it into a profitable investment.
Talk to us now—it’s free!
FAQ
1. Is it worth buying land in Bali?
Yes. Purchasing land in Bali offers several benefits and the land prices are rising consistently, making it an appealing investment.
2. Is it expensive to build a house in Bali?
The total price always depends on the chosen materials and design style. For example, building a 2–3 bedroom villa (around 150 m²) with a 30 m² pool typically costs between IDR 1.8 billion and IDR 2.2 billion (approximately $113,000–$142,000).
3. Do you have to live in Bali to own land?
No, living in Bali is not a requirement to own land. Many investors reside abroad and manage their properties from a distance, often with the help of local agents.
4. Are there any additional costs associated with purchasing land in Bali?
Yes, there are extra costs such as taxes, notary and legal fees, and possibly agent commissions. Be sure to include these in your overall budget when planning to buy.
