Leasehold in Bali is a long-term lease, typically 25–30 years, often with options to extend (e.g. 25+25+25). The land remains owned by an Indonesian, while the foreign investor gains the right to use and rent the property. It is similar to long-term leasing in Europe, but with decades-long terms.

Freehold (Hak Milik) is full ownership of land and property, available only to Indonesian citizens. Foreigners cannot acquire freehold directly. Options include establishing a PT PMA (foreign-owned company) with Hak Guna Bangunan (building rights), or using a local nominee structure – the latter being legally risky.

• Property and land documents: Land certificate (Hak Milik, Hak Sewa, Hak Pakai, Hak Guna Bangunan), KKPR (zoning), PBG/IMB (building permit), SLF (certificate of occupancy).
  
  

• Developer/owner documents: NIB (business registration), company incorporation papers (for PT or PT PMA), tax clearance (Pajak Bumi & Bangunan), lease agreement (if applicable).
  
  

• Additional checks: boundary verification, absence of encumbrances (mortgages, disputes), compliance with zoning restrictions (e.g. near temples or coastlines).

The PPAT fee is typically 1% of the purchase price, though it may range from 0.5%–1.5% depending on the complexity of the transaction. A minimum flat fee may apply for lower-value properties.

It can be safe and profitable if the purchase is structured correctly. Foreigners can legally invest via leasehold, Hak Pakai or PT PMA. Transactions are notarised and often conducted through escrow.

Risks include missing documents, unreliable developers, or unclear leasehold extensions. Thorough due diligence is essential. With the right partner and proper structure, Bali remains an attractive and profitable market.

Canggu – high demand and rental yields, but land is already expensive.

Uluwatu/Bukit – luxury developments, significant growth potential.

Ubud – cultural and wellness hub, strong demand for retreats and rentals.

Sanur – family-friendly, long-term rental market, boosted by new marina.

Nusa Dua – premium resort zone, stable demand for high-end property.

Off-plan offers lower entry prices, capital appreciation as construction progresses, and staged payment plans. Risks include construction delays, non-completion, lack of permits, or discrepancies from marketing renders. Risk mitigation requires due diligence, working with reputable developers, using a PPAT notary and escrow-based staged payments.

The process begins with defining objectives and budget. The agent analyses the market, shortlists vetted properties, presents financial data, organises viewings, and supports the client through to transaction.

Typical yields are 7–12% annually, with well-located and professionally managed villas achieving up to 12–20% per year. Bali is considered one of Asia’s strongest real estate markets for rental income and capital growth.

Mortgages for foreigners are extremely limited. Indonesian banks usually require residency (KITAS/KITAP) and a 40–50% down payment. A PT PMA structure may enable collateralised financing, but it is complex. Most investors use developer instalments or direct payment.

At the end of the term, renewal requires signing a new lease agreement before a notary (PPAT). Costs are based on market rates at the time and typically paid upfront. To safeguard investments, extension rights should be clearly included in the initial contract.

Foreigners cannot directly own land under freehold. Legal schemes (leasehold, Hak Pakai, PT PMA) protect investor rights if contracts are correctly structured. The main risk arises only with nominee ownership, which is not legally secure.

Interior changes are at the owner’s discretion. Structural alterations, façades or extensions require official approval (PBG/IMB) and, where applicable, consent from the developer or management company.

Yes. Investors can sign via a Power of Attorney, with documents notarised abroad and payments made via escrow. The PPAT notary manages the process, and final documents are delivered to the investor.

Reservation agreement, preliminary sale agreement (PPJB), final sale and purchase deed before a notary (AJB), or lease agreement in the case of leasehold. For remote deals, a Power of Attorney is also required.

Short-term holiday rentals (Airbnb/Booking.com) typically deliver 10–15%+ annual returns in tourist hotspots. Long-term rentals provide stable but lower yields of around 5–8%.

Yes. Bali lies in a seismic zone and experiences seasonal flooding in low-lying areas. Severe damage is rare, and risks can be mitigated by choosing suitable locations, quality construction with drainage, and disaster insurance.

Insurance is not automatic. Owners can arrange coverage for fire, natural disasters, theft, or liability. Many management companies recommend or facilitate this, especially for rental properties.

• International bank transfer (TT) in USD or EUR.
• Escrow account payments, offering the highest security.
• Developer instalments with 20–40% down payment.
• Local transfers in IDR (if holding an Indonesian bank account via PT PMA or KITAS).
• Cryptocurrency (USDT, USDC, Bitcoin) in limited cases through intermediaries.