Authored by the expert who managed and guided the team behind the Indonesia Property Pack
Yes, the analysis of Bali's property market is included in our pack
If you're a foreigner dreaming of owning a villa in Bali, you need to understand what you can actually buy and legally control before you start browsing listings.
Indonesia's property laws for foreigners are different from what you might expect, and Bali has its own specific price thresholds and common practices that can trip up unprepared buyers.
This guide covers ownership rights, visa requirements, the buying process, mortgages, taxes, and the biggest mistakes to avoid when purchasing property in Bali in 2026.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Bali.
Insights
- Foreigners in Bali must meet a minimum purchase price of around 5 billion rupiah (roughly 300,000 USD) for landed houses and 2 billion rupiah for apartments, which prices out most budget properties from legal foreign ownership.
- The "nominee" structure, where an Indonesian citizen holds title on your behalf, remains the single biggest trap for foreign buyers in Bali and offers essentially zero legal protection if the relationship breaks down.
- Bali's villa market is dominated by leasehold contracts rather than true ownership, with typical lease terms running 25 to 30 years and renewal options that depend entirely on contract quality.
- Indonesia's Golden Visa program launched in 2023 allows stays of 5 to 10 years for qualified investors, but property purchase alone does not automatically qualify you for this visa.
- Mortgage rates for foreigners in Indonesia typically range from 8% to 12% annually, significantly higher than what buyers from Western countries might expect from their home markets.
- The BPHTB acquisition tax alone can reach up to 5% of transaction value, making total closing costs for foreign buyers in Bali typically fall between 6% and 9% of the purchase price.
- Rental income from Bali property faces a 10% final tax on gross rent, with no deductions allowed for expenses, which simplifies filing but can reduce net returns compared to other markets.
- Bali's intense tourism pressure means many properties marketed as "residential villas" actually sit in problematic zoning categories, creating licensing headaches if you plan to rent short-term.
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
What can I legally buy and truly own as a foreigner in Bali?
What property types can foreigners legally buy in Bali right now?
Foreigners in Bali can legally purchase apartments, condominiums, and landed houses (including villas) under a "Right to Use" structure called Hak Pakai, but not the strongest freehold title that Indonesian citizens can hold.
The most important limitation is that Bali has minimum price thresholds set by the government: around 5 billion rupiah (roughly 300,000 USD) for landed houses and around 2 billion rupiah (roughly 120,000 USD) for apartments.
You also need valid immigration documentation to qualify for foreign-eligible ownership, which typically means something more substantial than a tourist visa if you want a clean, registrable title.
Leasehold contracts are extremely common in Bali's villa market and offer a practical alternative since they don't require meeting the minimum price thresholds, though they give you contract rights rather than ownership rights.
Finally, please note that our pack about the property market in Bali is specifically tailored to foreigners.
Can I own land in my own name in Bali right now?
No, foreigners cannot own land under Indonesia's strongest title (Hak Milik, which means freehold) because Indonesian law reserves this ownership right exclusively for Indonesian citizens.
The most common legal alternative is to hold a Hak Pakai (Right to Use) title, which foreigners can hold in their own name for eligible residential properties that meet the minimum price requirements.
Many buyers also use long-term leasehold contracts, typically 25 to 30 years with renewal options, which give you enforceable rights without requiring you to navigate the ownership restrictions at all.
Some foreigners set up Indonesian companies (PT PMA) to hold property under different title types, but this adds corporate compliance costs and is not the same as personal ownership.
By the way, we cover everything there is to know about the land buying process in Bali here.
As of 2026, what other key foreign-ownership rules or limits should I know in Bali?
As of January 2026, the most frequently encountered rule beyond price thresholds is that your immigration status must be valid and documented, meaning you need a proper visa or stay permit to hold foreign-eligible property rights in Bali.
There is no formal "foreign quota" for apartments or condos in Bali the way some countries restrict foreign ownership to a percentage of units, but individual developments may have their own rules about foreign buyers.
Foreign buyers must work through a PPAT (land deed official) or notary to register their property rights properly, and this registration step is what makes your ownership enforceable under Indonesian law.
The Golden Visa program introduced in 2023 represents a recent regulatory development, offering longer-stay options for qualified investors, though property purchase alone does not automatically trigger Golden Visa eligibility.
What's the biggest ownership mistake foreigners make in Bali right now?
The single biggest mistake is using a "nominee" arrangement where an Indonesian citizen holds the Hak Milik title in their name on your behalf, believing this gives you the same protection as actual ownership.
If the nominee relationship breaks down due to a dispute, death, divorce, or the nominee's debts, you can lose practical control of the property quickly because the law recognizes them, not you, as the legal owner.
Other classic pitfalls in Bali include buying property with unclear zoning (residential versus tourism), skipping proper due diligence on certificates and boundaries, and signing lease contracts without clear renewal terms or proper legal review.
We have made this infographic to give you a quick and clear snapshot of the property market in Indonesia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which visa or residency status changes what I can do in Bali?
Do I need a specific visa to buy property in Bali right now?
You can often sign a private lease contract while visiting Bali on a tourist visa, but holding a proper foreign-eligible ownership right like Hak Pakai generally requires valid immigration documentation beyond just a passport.
The most common administrative blocker for buyers without local residency is opening an Indonesian bank account, which you typically need for paying taxes, utilities, and handling the transaction itself.
While a local tax ID (NPWP) is not always mandatory before signing, you will likely need one if you plan to receive rental income, register utilities in your name, or complete ownership-type transactions in Bali.
A typical document set for foreign buyers includes your passport, valid visa or stay permit, NPWP (if applicable), proof of funds, and any power of attorney if you cannot be present for all signing steps.
Does buying property help me get residency and citizenship in Bali in 2026?
As of January 2026, buying property in Bali can support a residency application but does not automatically grant you residency or citizenship since visa eligibility is determined separately by Indonesian immigration authorities.
Indonesia's Golden Visa program, launched in 2023, offers 5 to 10 year stays for qualified investors, and the Second Home visa (E33) provides another long-stay pathway for people treating Indonesia as a lifestyle base.
The Golden Visa has specific investment thresholds that vary by category, and simply owning a house does not guarantee qualification since the program evaluates your overall profile, not just property ownership.
We give you all the details you need about the different pathways to get residency and citizenship in Bali here.
Can I legally rent out property on my visa in Bali right now?
Your visa status does not directly prohibit you from earning rental income in Bali, but the income itself triggers Indonesian tax obligations regardless of what visa you hold or where you live.
You do not need to live in Indonesia to rent out your Bali property, but you must still comply with Indonesian tax filing requirements, and many owners appoint local managers to handle day-to-day operations.
The key detail foreigners must know is that Bali aggressively distinguishes between "residential" properties and "tourism accommodation" businesses, so if you plan to do short-term rentals, you may face additional licensing requirements beyond simply owning or leasing the property.
We cover everything there is to know about buying and renting out in Bali here.
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How does the buying process actually work step-by-step in Bali?
What are the exact steps to buy property in Bali right now?
The standard sequence in Bali goes like this: find the property, confirm the legal structure (leasehold or Hak Pakai), run due diligence on the certificate and permits, agree on price and terms, pay a deposit, have the notary or PPAT prepare documents, pay taxes and fees, complete signing, and then register the transfer.
You do not have to be physically present for every step since many buyers use a power of attorney, but being there for at least the due diligence review and final signing reduces the risk of misunderstanding what you are agreeing to.
The step that typically makes the deal legally binding is when both parties sign the sale and purchase agreement (or lease agreement) before the notary or PPAT, especially once the deposit has been paid under the terms of that agreement.
From accepted offer to final registration, most Bali transactions take somewhere between 4 and 12 weeks, depending on how quickly due diligence clears, how fast the seller can produce documents, and how busy the land office is.
We have a document entirely dedicated to the whole buying process our pack about properties in Bali.
Is it mandatory to get a lawyer or a notary to buy a property in Bali right now?
A notary or PPAT (Pejabat Pembuat Akta Tanah, the official land deed maker) is effectively mandatory in Bali for any formal transfer or registration because they are the professionals legally authorized to prepare and authenticate deeds that the land office will accept.
The main difference is that a notary handles general legal documents and contracts, while a PPAT specifically handles land transfer deeds, so for property transactions you typically need a PPAT or someone who holds both roles.
One key item to include in your engagement scope is explicit responsibility for verifying the certificate authenticity, checking for encumbrances at the land office, and confirming that the seller actually has the right to transfer what they are selling.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Indonesia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What checks should I run so I don't buy a problem property in Bali?
How do I verify title and ownership history in Bali right now?
The official registry for verifying title and ownership in Bali is the local Badan Pertanahan Nasional (BPN) office, which is the National Land Agency branch that maintains records for each property's certificate and transfer history.
The key document to request is the Sertifikat Hak (land certificate), which shows the title type, the registered owner, the property boundaries, and any recorded encumbrances or notes.
A realistic look-back period for ownership history in Bali is at least 10 to 20 years, which helps you spot past disputes, irregular transfers, or gaps in the chain of ownership that could create problems later.
One clear red flag that should stop or pause your purchase is if the certificate shows different boundaries than the physical property, or if there are unresolved inheritance claims, pending court cases, or multiple people claiming to be the rightful owner.
You will find here the list of classic mistakes people make when buying a property in Bali.
How do I confirm there are no liens in Bali right now?
The standard way to confirm there are no liens or encumbrances is to request a certificate check at the local BPN office, where your notary or PPAT can verify whether any mortgages, disputes, or blocks are recorded against the property.
The most common type of lien to ask about specifically in Bali is a bank mortgage (Hak Tanggungan), since many properties are pledged as collateral and the seller must clear the loan before they can transfer clean title to you.
The best written proof is a formal statement from the BPN or a notary confirmation letter showing the certificate is "clean" with no recorded encumbrances, plus a seller warranty in your purchase contract that no undisclosed liens exist.
How do I check zoning and permitted use in Bali right now?
The authority for checking zoning and permitted use in Bali is the local government planning office (Dinas Tata Ruang or similar), which maintains spatial plans and can confirm whether your intended use matches what the land is zoned for.
The key document is the property's IMB (building permit) or PBG (the newer permit system) along with the area's spatial plan (RTRW), which together confirm what type of construction and use is legally allowed on that specific plot.
The most common pitfall foreign buyers miss in Bali is purchasing a "residential villa" that actually sits in agricultural or tourism-zoned land, which creates problems if you want to rent it out legally or if enforcement tightens in your area.
Buying real estate in Bali can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Can I get a mortgage as a foreigner in Bali, and on what terms?
Do banks lend to foreigners for homes in Bali in 2026?
As of January 2026, yes, some Indonesian banks do lend to foreigners for home purchases, but it is not a standard product and availability is narrower than what local Indonesian buyers can access.
Foreign borrowers in Indonesia typically see loan-to-value ratios in the 50% to 70% range, meaning you need to bring at least 30% to 50% of the purchase price as a down payment.
The most common eligibility requirement is having documented local income or employment in Indonesia, plus valid long-stay immigration status, since banks want confidence you can service the loan while residing or working here.
You can also read our latest update about mortgage and interest rates in Indonesia.
Which banks are most foreigner-friendly in Bali in 2026?
As of January 2026, the most foreigner-friendly banks for mortgages in Indonesia include Permata Bank (which openly markets expat-oriented mortgage products), HSBC Indonesia (which has international-bank onboarding processes), and CIMB Niaga (a major mortgage player sometimes workable for foreign profiles).
The single most important feature that makes these banks more accessible is that they have established processes for handling foreign documentation, non-rupiah income verification, and expat employment situations that local-only banks often cannot accommodate.
Whether these banks will lend to pure non-residents (buyers without any Indonesian residency or income) is generally difficult, since most still want to see some local presence, though HSBC and Permata may have more flexibility for well-documented international clients.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Bali.
What mortgage rates are foreigners offered in Bali in 2026?
As of January 2026, foreigners taking mortgages in Indonesia typically see interest rates in the 8% to 12% per year range, depending on the bank, product type, and whether you are in a promotional fixed-rate period or floating.
Many Indonesian mortgage products offer lower "teaser" rates for the first 1 to 3 years (sometimes as low as 5% to 7%), but then step up to floating rates that can reach 10% to 12% or higher, so the headline rate is often not what you pay over the life of the loan.
We made this infographic to show you how property prices in Indonesia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What will taxes, fees, and ongoing costs look like in Bali?
What are the total closing costs as a percent in Bali in 2026?
Foreign buyers in Bali should budget approximately 6% to 9% of the purchase price for total closing costs, which is higher than some Western markets due to the acquisition tax and professional fees involved.
The realistic range covers most standard transactions: simpler deals with clean documentation may come in closer to 6%, while complex situations with extra due diligence or legal work can push toward 9% or slightly higher.
The main fee categories that make up closing costs in Bali are the BPHTB acquisition tax, notary and PPAT fees, due diligence costs, administrative charges, and sometimes agent commissions if you used a buyer's agent.
The single biggest contributor is almost always the BPHTB (Bea Perolehan Hak atas Tanah dan Bangunan), which can reach up to 5% of the transaction value after subtracting a small non-taxable threshold.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Bali.
What annual property tax should I budget in Bali in 2026?
As of January 2026, annual property tax (PBB-P2) for a standard home in Bali typically costs between 0.05% and 0.20% of the property's market value, which translates to roughly 1 to 5 million rupiah (60 to 300 USD, or 55 to 275 EUR) per year for many mid-range properties.
The tax is calculated as a rate applied to the government-assessed value (NJOP), which is usually significantly lower than actual market value, so your effective rate as a percentage of what you paid is typically quite low.
How is rental income taxed for foreigners in Bali in 2026?
As of January 2026, rental income from land and buildings in Indonesia is typically subject to a 10% final tax on gross rent, meaning you pay 10% of what you receive with no deductions for expenses.
The basic requirement is that either your tenant withholds the 10% and remits it to the tax office (common when renting to Indonesian companies), or you self-assess and pay if your tenant is an individual or does not withhold.
What insurance is common and how much in Bali in 2026?
As of January 2026, annual property insurance premiums for a standard home in Bali typically range from 3 to 15 million rupiah (roughly 180 to 900 USD, or 165 to 825 EUR) depending on the property value, construction type, and coverage scope.
The most common type of coverage owners carry in Bali is basic property or building insurance covering fire and natural perils, with optional add-ons for flood, earthquake, and contents.
The biggest factor that drives premiums higher or lower for the same property type in Bali is location and construction quality, since coastal properties, traditional wooden structures, and areas with higher flood or landslide exposure pay more than concrete builds in lower-risk inland areas.
Get the full checklist for your due diligence in Bali
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Bali, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| FAOLEX - Basic Agrarian Law | Global legal database hosting Indonesia's foundational land law in English. | We used it to explain why foreigners cannot hold Hak Milik (freehold) title. We referenced it as the legal bedrock for all foreign ownership restrictions. |
| Indonesian Immigration - E33 Visa | Official government immigration authority describing visa conditions directly. | We used it to explain the Second Home visa pathway. We referenced it to clarify immigration status requirements for property buyers. |
| Indonesian Immigration - Golden Visa | Formal policy announcement from Indonesia's immigration authority. | We used it to explain what Golden Visa offers and its launch date. We avoided relying on hearsay about investor residency options. |
| BPK - PP 24/1997 Land Registration | Official Indonesian public law repository run by a state institution. | We used it to explain why proper registration and certificates matter. We anchored the buying process steps around what must be registered. |
| Bali Post | Long-running regional newspaper that explicitly cites the ministerial decree. | We used it to confirm Bali-specific minimum prices (5 billion rupiah for houses, 2 billion for apartments). We cross-checked decree details through this reporting. |
| Ministry of Finance - BPHTB | Published directly by Indonesia's Ministry of Finance ecosystem. | We used it to quantify the biggest buyer-side closing cost (up to 5%). We used it as the official baseline for closing cost estimates. |
| DJP - Rental Income Tax | Indonesia's national tax authority explaining rates and mechanics. | We used it to state the 10% final tax on gross rental income. We kept rental tax guidance specific and verifiable. |
| Permata Bank | Primary source from a regulated bank describing mortgage products. | We used it to confirm that foreigner-friendly mortgage routes exist. We listed it as an example of expat-positioned lending. |
| HSBC Indonesia | Primary bank source describing home loan products and documentation. | We used it to identify international banks as a foreigner-friendly category. We avoided making bank recommendations based on forums. |
| Lamudi Indonesia | Major property portal publishing rate grids with dates for market benchmarking. | We used it to estimate realistic mortgage rate ranges. We treated it as market triangulation rather than a legal source. |
| Ray White Indonesia | Major real estate brand with reputational stakes referencing government thresholds. | We used it as a practical market translation of ownership rules. We only cited it where it aligned with official sources. |
| Detik | Major Indonesian news outlet referencing PP 18/2021 requirements. | We used it to verify immigration document requirements for foreign buyers. We cross-checked minimum price reporting. |
| Ministry of Foreign Affairs - Golden Visa Booklet | Government-issued explainer intended for public use. | We used it to cross-check Golden Visa types and durations. We triangulated investment threshold messaging from another official source. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Indonesia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
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