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Can foreigners own land in Bali?

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Authored by the expert who managed and guided the team behind the Indonesia Property Pack

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Yes, the analysis of Bali's property market is included in our pack

Foreigners cannot directly own freehold land in Bali, but they can legally acquire land through various structures including leasehold agreements, Hak Pakai rights, or by establishing a PT PMA company. While Indonesian law restricts freehold ownership to citizens only, foreign investors have several viable options for securing long-term land rights in Bali.

If you want to go deeper, you can check our pack of documents related to the real estate market in Indonesia, based on reliable facts and data, not opinions or rumors.

How this content was created 🔎📝

At BambooRoutes, we explore the Indonesian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Jakarta, Bali, and Surabaya. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

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Daniel Rouquette 🇫🇷

CEO & Co-Founder at Villa Finder

Daniel Rouquette is very knowledgeable about the Bali villa market, as Villa Finder offers a vast selection of properties across the island. As the CEO and Co-Founder of Villa Finder, he has been leading the company since 2012, providing high-quality villa rentals and personalized concierge services. With over 4,000 villas in 28 destinations, Villa Finder has become a trusted name in luxury short-term rentals in the Asia-Pacific region.

What types of land titles are available in Bali and which ones can foreigners acquire?

Bali offers five main types of land titles, but only three are accessible to foreign buyers through legal structures.

Hak Milik (freehold) provides permanent ownership rights but remains exclusively available to Indonesian citizens. This is the strongest form of land ownership in Indonesia, offering unlimited duration and full transfer rights.

Hak Pakai (Right to Use) allows foreigners to hold land directly for residential or commercial purposes for 25-30 years, with extensions possible up to 70-80 years total. This title works well for individual foreign buyers who want direct control without establishing a company.

Hak Guna Bangunan (HGB or Right to Build) enables foreign-owned companies to develop land for up to 30 years, extendable to 80 years maximum. Foreign investors typically access HGB through a PT PMA (foreign investment company) structure.

Leasehold agreements provide the most straightforward option for foreigners, offering 25-30 year terms with renewal possibilities. These agreements function similarly to long-term rental contracts but provide stronger legal protections than standard leases.

Can foreigners legally own freehold land in Bali?

No, Indonesian law strictly prohibits foreigners from owning freehold (Hak Milik) land in Bali or anywhere else in Indonesia.

Article 21 of Indonesia's Basic Agrarian Law (Law No. 5/1960) reserves freehold ownership exclusively for Indonesian citizens. This restriction applies to all foreign individuals, regardless of their residency status, visa type, or length of stay in Indonesia.

Foreign companies, including PT PMA entities, also cannot hold freehold titles. Even if a foreigner obtains Indonesian citizenship, any existing freehold land owned through nominee arrangements must be regularized according to current legal requirements.

The government designed this restriction to protect Indonesian land from foreign control and maintain national sovereignty over land resources. As of June 2025, no pending legislation suggests this fundamental restriction will change.

Foreigners attempting to circumvent this law through nominee arrangements face significant legal and financial risks, including potential loss of their investment and criminal charges.

What legal structures do foreigners use to acquire land in Bali?

Foreign land buyers in Bali primarily use three legal structures, each offering different levels of control and investment requirements.

PT PMA (Penanaman Modal Asing) companies represent the most secure option for foreigners seeking ownership-like control. These foreign investment companies can hold HGB titles and require minimum investment of IDR 2.5 billion (approximately $152,000) across land and business operations. PT PMA structures provide renewable 30-year land rights and allow business operations.

Direct leasehold agreements offer the simplest approach for individual buyers. These contracts typically run 25-30 years with renewal options and require no minimum investment beyond the lease payment. Leasehold provides use rights without ownership obligations or business requirements.

Hak Pakai titles allow qualified foreigners to obtain direct land use rights for residential purposes. Applicants need valid residence permits (KITAS or KITAP) and must demonstrate legitimate residence needs. This option provides 25-30 year renewable rights with potential extensions up to 70-80 years total.

Nominee arrangements, where Indonesian citizens hold titles on behalf of foreigners, lack legal recognition and carry substantial risks. Indonesian courts do not enforce nominee agreements, and foreigners using such structures risk total loss of their investment.

What exact steps must foreigners follow to purchase land legally in Bali?

The legal land purchase process in Bali involves seven critical steps that typically take 3-6 months to complete.

Step 1 requires selecting your legal structure based on your goals, budget, and timeline. Individual buyers often choose leasehold or Hak Pakai, while investors planning development typically establish PT PMA companies.

Step 2 involves comprehensive due diligence including land title verification at the National Land Office (BPN), zoning confirmation, encumbrance checks, and physical surveys. Professional legal advisors should conduct this process to identify potential issues.

Step 3 requires engaging qualified professionals including a licensed notary (PPAT), legal advisor experienced in foreign transactions, and often a surveyor for boundary verification.

Step 4 involves drafting and negotiating the Sale and Purchase Agreement (SPA) or lease agreement, including payment terms, conditions precedent, and completion timeline. Most agreements require 10-30% deposits.

Step 5 covers completing the transaction through document signing at the notary office, full payment transfer, and obtaining necessary signatures from all parties.

Step 6 includes title registration at BPN, which typically takes 30-60 days and requires various certificates and tax payments.

Step 7 involves obtaining building permits and other approvals if construction is planned, including Building Permit (PBG) and Certificate of Functionality (SLF).

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Do I need to be physically present in Bali to complete the land purchase?

Physical presence in Bali is not always required for land purchases, though it significantly simplifies the process and provides better oversight.

Power of Attorney arrangements allow qualified legal representatives to handle most transaction steps on your behalf. Your representative must be a licensed Indonesian attorney or notary with specific authorization for property transactions.

Critical documents requiring your personal involvement include the initial Power of Attorney, which must be executed at an Indonesian consulate in your home country or in Indonesia with proper apostille certification. Banking arrangements for large transfers often require in-person verification for security purposes.

PT PMA establishment typically requires the foreign director to appear for company registration, bank account opening, and initial legal filings. Some banks and notaries accept video conferencing for certain procedures, but policies vary by institution.

Due diligence inspections benefit greatly from personal site visits to verify land conditions, access, utilities, and neighborhood characteristics. Professional inspectors can conduct technical assessments, but personal evaluation helps avoid costly surprises.

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What documents and permits are required for foreign land purchases?

Document requirements vary significantly based on your chosen legal structure and intended land use.

For leasehold transactions, you need a valid passport with at least 18 months remaining validity, Indonesian visa or residence permit (KITAS/KITAP recommended for better terms), proof of income or financial capacity, and bank statements covering the lease period. The lease agreement requires notarization and registration with local authorities.

PT PMA structures require extensive corporate documentation including articles of association, BKPM (Investment Coordinating Board) approval, business licenses specific to your planned activities, corporate tax number (NPWP), and Indonesian corporate bank account. Directors need Indonesian tax numbers and valid residence permits.

Hak Pakai applications require valid residence permits, proof of residence needs, income verification, and sometimes recommendation letters from local authorities. The application process involves multiple government agencies and typically takes 3-6 months.

Building and development projects require additional permits including Building Permit (PBG), environmental assessments for larger projects, utility connection approvals, and Certificate of Functionality (SLF) upon completion. Zoning compliance certificates are mandatory for all construction activities.

All foreign documents require apostille certification and official Indonesian translation by sworn translators.

What are the total costs involved in buying land as a foreigner?

Total costs for foreign land purchases in Bali typically range from 8-15% of the property value, depending on the legal structure and transaction complexity.

Cost Category Percentage of Property Value Fixed Amount (IDR) Notes
Notary Fees 0.5% - 2.5% - Higher for complex transactions
Legal Fees 0.5% - 1% - Due diligence and representation
Property Acquisition Tax (BPHTB) 5% - Paid by buyer
Income Tax on Sale 2.5% - Often passed to buyer
Value Added Tax (PPN) 10% - New properties only
Due Diligence - 15-75 million Complex properties cost more
Building Permits - 30-50 million If construction planned

PT PMA establishment adds significant upfront costs including company formation fees of IDR 50-100 million, minimum investment requirements of IDR 2.5 billion, and ongoing compliance costs of IDR 50-100 million annually.

Leasehold agreements often require lease extension fees ranging from IDR 500 million to over IDR 1 billion, depending on location and remaining lease term. These costs typically arise every 25-30 years.

Ongoing expenses include annual land and building tax (PBB) varying by location and value, property management fees of 10-20% of rental income if leasing out, and regular legal compliance reviews for PT PMA structures.

Can foreigners get mortgages in Indonesia for land purchases?

Mortgage financing for foreign land buyers in Indonesia remains limited but possible through specific channels and with stricter requirements than domestic buyers face.

Indonesian banks including BCA, Mandiri, and CIMB Niaga offer mortgages to foreigners, typically requiring valid residence permits (KITAS or KITAP), minimum down payments of 40-50%, and proof of stable Indonesian income. Interest rates for foreign borrowers typically range from 8-12% annually as of June 2025, compared to 6-9% for Indonesian citizens.

Loan terms usually limit financing to 15-25 years maximum, shorter than the 30-year terms available to locals. Banks often require PT PMA structures for land financing, adding complexity and costs to the borrowing process.

International lenders including Singapore-based banks and regional development finance institutions sometimes provide financing for substantial Indonesian property investments. These loans typically require minimum borrowing amounts of $500,000-1 million and may offer more flexible terms.

Alternative financing through developer financing, private lenders, or offshore mortgage brokers exists but carries higher risks and costs. Developer financing often includes higher interest rates but simplified application processes.

Most foreign buyers choose cash purchases to avoid financing complexity, regulatory requirements, and currency exchange risks associated with international mortgages.

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What common mistakes do foreigners make when buying land in Bali?

Foreign land buyers in Bali frequently make five critical mistakes that can result in significant financial losses or legal complications.

Using nominee arrangements represents the most dangerous mistake, as these structures lack legal recognition under Indonesian law. Courts consistently rule against foreigners attempting to enforce nominee agreements, resulting in complete loss of investment. Many foreigners fall into this trap due to lower upfront costs and simpler procedures.

Inadequate due diligence causes substantial problems when buyers fail to verify land ownership, check for encumbrances, or confirm zoning compliance. Common issues include disputed boundaries, outstanding debts secured against the property, or land designated for non-residential use. Professional legal and technical inspections cost IDR 15-75 million but prevent much larger losses.

Ignoring zoning restrictions leads to construction delays, fines, or forced demolition. Bali's complex zoning laws include height restrictions, density limits, and use classifications that vary by district. Foreign buyers often assume their intended use is permitted without proper verification.

Underestimating total costs creates cash flow problems when buyers budget only for purchase prices without considering taxes, fees, and ongoing obligations. Hidden costs often add 8-15% to the advertised property price, plus annual compliance and maintenance expenses.

Choosing unqualified professionals results in poor legal advice, inadequate documentation, or fraudulent transactions. Qualified notaries (PPAT) must have specific licenses for foreign transactions, and legal advisors should demonstrate extensive experience with foreign property acquisitions.

Where do foreigners typically buy land in Bali and what are current prices?

Foreign land buyers concentrate in six primary areas of Bali, each offering different lifestyle benefits and investment potential as of June 2025.

Area Average Price per m² Average Total Price Primary Appeal Typical Buyer Profile
Seminyak IDR 7.18 million ($438) IDR 3.32 billion ($202,276) High-end dining, shopping Luxury investors, retirees
Canggu IDR 3.4 million ($207) IDR 1.9 billion ($115,900) Surf culture, digital nomads Young professionals, surfers
Ubud IDR 3.41 million ($208) IDR 2.66 billion ($162,382) Cultural experiences, wellness Wellness tourists, artists
Sanur IDR 2.6 million ($158) IDR 872 million ($53,205) Quiet beaches, families Families, older expats
Uluwatu IDR 1.4 million ($85) IDR 279 million ($17,019) Scenic cliffs, surfing Budget-conscious buyers
Lovina/Singaraja IDR 1.4 million ($85) IDR 279 million ($17,019) Authentic culture, low costs Long-term residents

Seminyak commands premium prices due to its established infrastructure, international dining scene, and proximity to Ngurah Rai Airport. Land prices have increased 8-12% annually over the past five years, making it the most expensive area for foreign buyers.

Canggu attracts younger demographics with its surf beaches, co-working spaces, and vibrant nightlife. Recent infrastructure improvements and new developments have driven 15-20% annual price appreciation since 2020.

Ubud appeals to wellness-focused buyers and those seeking cultural immersion. Land prices remain stable with 5-8% annual growth, supported by consistent tourist demand and limited development space.

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What is the long-term outlook for land investment in Bali?

Bali's land investment outlook through 2030 shows positive fundamentals supported by infrastructure development, tourism growth, and government policy stability.

Price appreciation trends indicate continued growth averaging 8-15% annually in prime areas like Seminyak and Canggu, while emerging areas like Uluwatu and North Bali show potential for higher returns as infrastructure improves. The Indonesian government's commitment to tourism development, including new airport expansions and road improvements, supports long-term value growth.

Regulatory stability remains strong with no significant changes to foreign ownership laws expected through 2030. The government has actually simplified some procedures for foreign investment, including streamlined PT PMA establishment and extended visa programs for foreign residents.

Tourism recovery post-COVID has exceeded expectations, with visitor numbers reaching 6 million in 2024 and projected to reach 8-10 million by 2030. This growth supports rental demand and land values across all market segments.

Infrastructure development including the new Bali Maritime Tourism Hub, improved waste management systems, and upgraded transportation networks will likely increase property values in previously underdeveloped areas.

Risk factors include potential climate change impacts on coastal properties, water scarcity issues in some areas, and possible changes to foreign investment policies under future governments. Currency fluctuation between the Indonesian Rupiah and major international currencies also affects investment returns for foreign buyers.

Does owning land in Bali provide residency or stay permit rights?

Land ownership in Bali does not automatically grant residency rights or long-term stay permits to foreign buyers.

Indonesian immigration law separates property ownership from residency status, requiring foreigners to apply for appropriate visas regardless of their property investments. Even substantial land purchases through PT PMA companies do not guarantee visa approval or extend existing permit durations.

Foreign land owners must obtain separate residence permits including KITAS (Stay Permit), KITAP (Settlement Permit), or the new B213A Second Home Visa launched in 2023. Each permit type has specific requirements, application procedures, and validity periods independent of property ownership.

The Second Home Visa offers the most attractive option for property owners, providing 5-10 year validity with multiple entry privileges and minimal stay requirements. However, applicants must meet financial criteria and background checks separate from their property investment.

PT PMA company directors may qualify for investor visas related to their business activities, but these permits depend on company operations, not land ownership. The company must demonstrate active business operations and meet minimum investment thresholds to maintain visa eligibility.

Foreign property owners planning extended stays should consult immigration lawyers to determine the most appropriate visa strategy based on their specific circumstances, investment structure, and long-term plans.

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Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

  1. Bali Architecture Realty - Property Ownership and Land Titles
  2. Nour Estates - Property Ownership in Bali
  3. Emerhub - Land Ownership in Bali
  4. Bali Exception - How Foreigners Can Own Property in Bali
  5. Bali Realty - Can Foreigners Own Freehold Property
  6. Emerhub - Land Due Diligence in Bali
  7. ILA Global Consulting - Land Ownership and Title Transfer
  8. Invest in Asia - Bali Freehold Property Title
  9. ILOT Property Bali - Can Foreigners Buy Property
  10. Own Property Abroad - Land Price Overview Bali