Bali Property Blog

Ways To Acquire Realty in Bali

The island of Bali has been a top tourist destination for decades. It is blessed with pristine beaches, majestic mountain ranges, emerald green rice paddies, and swift refreshing rivers. As an island, Bali has a unique culture that truly draws people to visit. With its rich history, modern amenities, and uniquely preserved heritage it continues to be a top destination for escapade aficionados.

The island is famed for its villas and estates of all shapes and sizes. Villas vary from luxurious ones with superb amenities to budget friendly yet finely furnished ones. Wide ranges of properties are for lease while some are purchasable on the market.

Realty in Bali is a steadily developing venture. The market has been growing without delay, thanks to the charm and wonder Bali has to offer. Bali is in fact home to thousands of expatriates from around the globe.

Foreigners are not allowed to acquire a freehold title for a property such as land (hak milik). This is a right which is exclusive to Indonesian citizens. However, foreigners are allowed to hold a Right of Use title (hak pakai) valid for 25 years and can be renewed depending on the contract, provided that the foreigner invests and maintains a property in Indonesia that contributes to national development. The Hak Pakai title comes with a mortgage and is limited to a certain period of time.Bali Mount Agung

For foreigners who are considering purchasing real properties in Bali with freehold title, it is advised to use an Indonesian nominee or marry a woman who is Indonesian, the foreigner should make her the nominee in transactions. However, under Indonesian jurisdiction, properties in the woman’s name that she got during the marriage can be forfeited by the government unless the woman has a prenuptial agreement.

Some foreigners opt to have the property owned by a Penanaman Modal Asing or a Foreign Investment Company. It is directly controlled by the foreign investor and 100% foreign owned. The downside of using a PMA Company is that the foreign investor cannot hold a freehold title. Property leasing is also offered in Bali.

Foreigners are advised to consult with lawyers to further discuss and explain the provisions of property laws in Indonesia. Lawyers can also help you with the proper documentation required for the purchase.

Whether you want to buy an existing realty in Bali or you want to build one for yourself, laws and regulations are employed to protect both the investor and the real estate company. If you want a property of your predilection, your obvious option is to build one.

Of course, building cost vary on how luxurious you want your property to be. Construction can be very costly because you really have to make something from scratch.

While buying an existing home can save up on construction cost, it also poses drawbacks to investors. It can be priced expensively by former owners to recover at least the same amount they spent on building the property.

After deciding to purchase a realty in Bali, all that’s left to be concerned about is its location. Bali is a magical island full of nature’s wonder so it’s practically okay to purchase a property anywhere in the island. However, if you wish to have of the best of both worlds, modernity minus the hustle bustle,  Ubud, also the cultural heart of Bali, or acquiring a new home in Nusa Dua would be your choice.

If you want to be in the social and nightlife circuits, you can purchase properties in the Southern part of the island where high-end clubs and bistros are located. If your idea is to get away from the stress of urbanization and to reconnect with nature, you’ll want the high mountain range in the north of Bali. It has incredible views of the beautiful oceans and ethereal mountains.

Owning a dream home in Bali, is a win-win situation. Not only do you get to live in the famed island of the gods but you also get to enjoy the perks and beauty of the island.


  1. Bali property  July 3, 2015

    Thanks for your kindly space…
    you have a great article above, in my opinion the best way foreigners to own property is LEASEHOLD concept , rent in long term. More cheap and not complicated as well.


  2. bali property  October 30, 2016

    Property in south east asia is getting slow … rather move down… how about property in bali ?

  3. Gusti and Associates  February 9, 2018

    Landep Hospitality (LH) is a Consultant and management Company that specializes in Hospitality Industries. If you required Villa Management, please do not hesitate to contact us, further details


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