Real estate in Bali

Foreigners cannot own freehold land, but they can legally acquire real estate through:

• Leasehold titles for 25–30 years, typically extendable up to 70–90 years total.

• Hak Pakai (Right to Use) ownership via a PT PMA company, which allows long-term control of the property.

• Foreigners can fully own buildings, but not the land beneath them.

More than 85% of villa transactions for foreigners on Bali are structured through leasehold.

Below — real, standard transaction costs in Indonesia:

• Transfer tax (BPHTB): 5% of the taxable property value (usually paid by buyer).

• Seller income tax (PPh Final): 2.5% of property value.

• Notary (PPAT) fees: 1–2% of the contract value.

• Due diligence: usually IDR 5–15 million depending on complexity.

• Annual land & building tax (PBB): typically IDR 100,000–1,000,000/year — very low compared to other countries.

• Property management fees (if applicable): 15–25% of rental income.

Yes, but only when properly verified. A correct due-diligence check includes:

• Validity of land certificate (SHM / SHGB / Hak Pakai)

• Zoning (ITR) confirmation — key for rental licensing

• Developer’s IMB/PBG construction permit

• Leasehold rights registered for the full period advertised

• Payment structure tied to construction milestones

• Project escrow or controlled payment system

On Bali, more than 60% of new investment villas are sold off-plan.

We work with certified notaries to verify all legal aspects of the property:

• Ownership chain (master certificate and all transfers of rights)

• Land zoning (tourism, mixed-use, residential — crucial for rental licensing)

• Building permit (PBG) status and compliance

• Any existing encumbrances, disputes, or restrictions

• Proper ownership structure for foreign buyers (Leasehold, Hak Pakai, or PT PMA)

More than 90% of legal issues in Bali come from incorrect zoning or missing permits — these two points are always our top priority in the due-diligence process.

Real, measurable indicators:

• Occupancy rate:

  • Canggu, Seminyak: 70–85% annually

  • Uluwatu, Ubud: 55–75% annually

• Typical ROI:

  • Well-managed villas: 10–18% per year

  • Apartments: 8–12% per year

• Tourism growth:

  • Bali welcomed 5.2 million international tourists in 2023, +60% YoY

  • Indonesia targets 7+ million visitors for 2024–2025

• Entry price:

  • Investment villa leaseholds start from USD 150,000–250,000

  • Premium villas: USD 350,000–1,000,000+

Bali remains one of the top global short-term rental markets, often outperforming Phuket, Maldives, and Dubai in ROI for private villas.