Real estate in Bali: buying property


Bali, one of Indonesia's thriving regions, has garnered attention from the government for infrastructure development and fostering a business-friendly environment. The island's allure for real estate investment is evident, yet prospective investors must navigate the local legal landscape for a swift and seamless transaction.

Main legal aspects

In Indonesia, stringent legal requirements govern real estate transactions:

  1. Foreigners can own real estate through two government-provided options:
    1. A 30-year lease with an option to extend for another 20 years.
    2. Long-term leases, aligning with efforts to encourage foreign investment.
    3. Establishment of a PT PMA (Foreign Investment Limited Liability Company)
  2. Transparency is mandated in real estate transactions, with full payments required. Failure to complete payment may nullify the transaction.
  3. Legal transactions must occur under the supervision of an authorized officer to ensure compliance with legal requirements.
  4. Due diligence is crucial, necessitating the examination of the original certificate of ownership, as the property's legal status relies on this document.
  5. Thorough background checks are essential, providing information on disputes, outstanding payments, and the property's current status for informed decision-making.

Types of property in Bali available to foreigners

Foreigners in Bali have diverse property ownership options, each with unique rules and features. It's crucial to note Indonesian law restrictions on land ownership, to be discussed later. Common types of property ownership include:

Right to Use
A lease agreement granting a foreigner the right to use property for a specified period, typically 25 or 30 years. Renewal terms should be carefully reviewed.
Right to Build
Allows a foreigner to construct on land they do not own, usually granted for up to 30 years, renewable for an additional 20 years.
Foreign Investment Company
Setting up a PT PMA, an Indonesian limited liability company, allows property ownership for specific purposes, subject to investment regulations.

Professional advice on Indonesian property laws is recommended for a streamlined and secure transaction process.

Restrictions and nuances

Foreigners aiming to own property in Bali must adhere to Indonesian law restrictions:

  • Prohibition of direct land ownership, including residential and commercial properties. Alternatives include leases, development rights, or long-term leases.
  • Nominee agreements are common but subject to verification by Indonesian authorities, requiring diligent due diligence.
  • Some rural areas in Bali restrict foreign land ownership for agricultural purposes, necessitating thorough due diligence.
  • Careful examination of land certificates is crucial to avoid post-investment inaccuracies.
  • Reviewing zoning regulations and land restrictions is essential for compliance with government guidelines.
  • Understanding property tax laws and accurate transaction pricing is vital to prevent title denial.

Due diligence is a priority, with specific steps outlined for a comprehensive assessment:




Verify the seller's identity documents.


Request the tax report (SPPT PBB) for tax compliance.


Confirm zoning and land usage alignment with intended activities.

Investing in Bali real estate in 2024: a profitable opportunity

Buying property in Bali represents a potentially profitable investment in 2024. Despite the relaxation of government legislation, concluding real estate transactions remains a resource-intensive process. Our team is ready to offer a range of comprehensive services to help you develop a sound investment strategy, with a particular focus on assisting with the drafting of contracts for real estate transactions.

Supporting an international real estate transaction makes it possible to conduct a thorough analysis of all legal factors that may affect the occurrence of risks in the transaction. Our commitment is to ensure that there are no potential obstacles in your investment journey.
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