Buying Property in Bali as a Foreigner: A 2025 Legal Guide

For many international investors and lifestyle seekers, Bali remains an irresistible destination. The combination of natural beauty, strong rental returns, and lifestyle appeal continues to draw attention from buyers around the world.

Yet despite its accessibility, buying property in Bali as a foreigner requires thoughtful navigation. Indonesian land laws are unique, and understanding them is essential to secure your investment properly,and legally.

Can Foreigners Own Land in Bali?

Under Indonesian law, foreign individuals cannot directly own freehold land. However, there are several legal structures that allow foreigners to gain control or long-term usage rights over property:

Legal Ownership Options for Foreign Buyers

1. Leasehold (Hak Sewa)

The most common and straightforward method for foreigners. Leasehold agreements typically range from 25 to 30 years, with extension options built in.

• Allows legal occupancy and use of the property
• Renewable for additional terms
• Suitable for villas, apartments, and land

2. Right to Use (Hak Pakai)

Available to foreigners with a KITAS (temporary stay permit) or KITAP (permanent stay permit), this title allows individuals to own a residential property for up to 80 years (initial 30 years + extensions).

• Requires residency documentation
• Must be used for residential purposes
• Often used for luxury homes and expat residences

3. Foreign-Owned Company (PMA Structure)

Foreigners may establish a foreign investment company (PT PMA) to hold land under a Right to Build (Hak Guna Bangunan) or Right to Use (Hak Pakai).

• Enables ownership of commercial and rental properties
• Requires legal incorporation and reporting
• Often used for hospitality ventures and larger developments

Important Legal Considerations

• Due diligence is essential: Work with a notary (PPAT) and legal advisor experienced in Bali property transactions.
• Nominee arrangements are risky: Using an Indonesian citizen as a stand-in owner is technically illegal and exposes both parties to potential legal disputes.
• Zoning matters: Ensure the land is zoned for the intended use,residential, commercial, or tourism.
• Extension terms: Clarify renewal rights in lease agreements and ensure they’re registered.
• Building permits (IMB/PBG): Confirm that the property complies with planning permissions and regulations.

Choosing the Right Structure

The best ownership model depends on your goals:

• Short-term stay or holiday home? Leasehold is generally sufficient.
• Long-term residence with KITAS/KITAP? Consider Hak Pakai.
• Business or rental investment? A PT PMA offers flexibility and compliance.

Final Reflection

Foreign investment in Bali real estate continues to grow,but doing it right requires legal clarity and experienced guidance. At IndoVillas, we work alongside top legal professionals to support our clients from initial search to final signature, ensuring every deal is structured for security, growth, and peace of mind.

Browse our current listings at IndoVillas, or contact our team to begin your property journey in Bali today.