Bali ranks as the second most popular destinations in the world. And here’s more good news: since 2010, foreigners have been legally allowed to buy and invest in property here. That’s why many people are interested in finding affordable land or villas with stunning views in Bali.
However, the property buying process in Bali is quite different from that in other countries. To help you avoid costly mistakes, we’ve created this guide to walk you through how to safely buy land or villas in Bali as a foreigner in 2025.
1. Understand the Local Law Before Buying Property in Bali
When researching how to buy property in Bali, you’ll come across two main types of ownership: freehold or leasehold. Freehold (“Hak Milik”) gives full lifetime ownership but is only available to Indonesian citizens under Indonesian law No. 5 from 1960 on Basic Agrarian Principles.
Foreigners can only buy freehold property through a PT PMA company—a foreign-owned company. This requires a minimum investment of $700,000 and meeting several legal conditions. Alternatively, you can invest as an individual but only under a different ownership title, such as Hak Pakai or HGB.
The simpler route for most foreigners is buying a leasehold property. You’ll have the right to use the land for 25–30 years, often with the option to extend depending on your agreement.
2. Find a Property to Buy
Once you understand the rules, the next step is to find the right property. In Bali, you’ll mostly find land and villas, though apartments are becoming more common. Ask yourself first: “Should I buy land or a house?” since the strategy will depend on your goals.
You can also use the questions below to guide your research:
1. What are your lifestyle and daily needs?
Think about your lifestyle needs. Do you have school-age kids or elderly parents? Do you prefer walking or need to drive? These choices will affect where you buy and how much you spend.
The best places to buy property in Bali are Canggu and Umalas, Uluwatu, Jimbaran, and Ubud. However, each location has its own unique point. Canggu and Seminyak are buzzing with beach clubs, cafes, and surf. Ubud offers a peaceful jungle vibe, while Uluwatu is famous for its cliffs and white-sand beaches.
2. What are your budget and investment goals?
Are you buying to live or to invest? If your goal is passive income, villa rental investments are one of the easiest paths. You can consider a turnkey villa investment through Bali Villa Realty by Ilot.
Our team finds the best land, builds to high Western standards, and manages the whole process for you. With just a 10% down payment, you can become a luxury turnkey villa owner in Bali.
3. What type of property are you looking for?
Before buying, it’s important to know what kind of property best fits your goals. Are you looking for a holiday home, a long-term residence, or a rental investment? Each option comes with different requirements and benefits.
- For personal use: You might prioritize comfort, location, and design that matches your lifestyle. Quiet areas like Ubud or beachfront spots in Tabanan might be perfect.
- For investment: Look for areas with strong rental demand, such as Canggu or Seminyak. Off-plan villas can be a great option to maximize ROI.
- For mixed use (part-time stay, part-time rent): Flexibility matters. Make sure the property is legally allowed for short-term rentals and can be managed when you’re away.
3. Financial Planning and Costs
Plan your finances before buying land or a home in Bali. Since foreigners can’t get local loans easily, you’ll need to pay with cash.
How much does it cost to buy a property in Bali? In central areas like Canggu or Seminyak, 100m² can cost up to $125,000. In remote spots, you might find land as low as $150 per 100m².
Here are the main costs categories you should plan for:
- Purchase Price: The main cost of buying your land or villa. It’s usually the largest cost.
- Taxes: The amount of tax you pay depends on how you buy the property. If you buy through a foreign-owned company (PT PMA), expect around 10% tax. Buying as an individual might come with higher taxes.
- Ongoing Costs: Even after you buy your property, you’ll need to spend money to maintain it. This might include paying for repairs, cleaning, or community fees if you live in shared areas like a swimming pool or garden.
Pro tip: It is often cheaper to buy an off-plan villa or land. You can explore listings at Bali Villa Realty by Ilot Property to find the best options by location, price, and style.
Also Read: How to Buy Off-Plan Property in Bali
4. Complete Due Diligence Report
Due Diligence, or a property title background check, is the most crucial step. It helps you avoid legal issues, unpaid taxes, or fake ownership claims. Ask the owner to show you these important documents:
- Original Hak Milik Certificate: Do not accept copies, as only the original document confirms ownership rights.
- ID Documents: A copy of the seller’s and their spouse’s Kartu Tanda Penduduk (KTP). The names should match those listed on the Hak Milik Certificate, Family Card (Kartu Keluarga/KK), and Marriage Certificate (or Death Certificate if the spouse is deceased).
- PBB Tax Payment (SPPT PBB): This proves that the land tax has been paid and there are no outstanding payments.
- NPWP: The seller’s official tax identification number in Indonesia.
It is also important to confirm the land zoning according to Indonesian law. The zoning rule determines how this land can be used, for example:
| Zoning Type | Description |
|---|---|
| Green Zone | Land designated for agriculture only. No building is allowed. |
| Yellow Zone | Residential zoning. Some allow rentals; others are for private use only. |
| Commercial Zone | Land approved for commercial use, such as shops, villas for rent, or businesses. |
5. Apply for the Right Building Permit (PBG)
Buildings in Bali require a special building permit. One is PBG (Persetujuan Bangunan Gedung), formerly known as IMB.
IMB mandates property owner to apply for a permit before starting a building, and it could take a few months to process. The rules have changed somewhat with PBG, including that it no longer has to be applied before the build starts, as its function is to state the technical build requirement to which a building must be built.
Keep in mind that Indonesia’s rules can change fast and tend with little notice, so stay updated. For easier management, you can let Ilot Property Bali team to handle all the permits for you. We will get every documents without any hassle.
6. Sign Contract and Transfer Money
Once everything checks out, it’s time to sign the contract and pay. The signing is only legal in the presence of a certified notary, who will revise, sign, stamp, and register your agreement.
or completed villas, full payment is due upfront. However, off-plan projects mean the payments are structured throughout the build, making it a more manageable and cost-effective solution.
7. Build Your Future Property
If you buy land, the next step is to build. You don’t have to handle it alone—Ilot Property Bali can manage the entire construction for you.
With 20+ years of experience, Ilot Property has developed several optimal villa layouts. Our team of experts will handle everything from land sourcing to design modifications, legal documentation, and taxes. In just 10 months, you can have a luxury villa ready to live in or rent out.
Our architecture and construction teams teams create modern, durable villas with a luxury feel. We also use high-standard materials like micro-piles, cavity floors, steel beams, and double-layer walls for lasting comfort.
8. Hire a Property manager
Bali’s tropical weather can be harsh. So, plan for regular upkeep. Not every property agency offers support, but Ilot’s management team handles maintenance and housekeeping for you.
We offer full management services with no sign-up fees, 24/7 guess support in 5 languages, plus marketing, tax reporting, and regular villa checks. You can always relax and earn maximum profit from your investment, whether you’re staying in Bali or not.
Conclusion
Now you know how to safely and legally buy property in Bali. After your villa is built, you can move in (with the right visa) or rent it out while you travel.
Remember great villas sell fast in Bali, so don’t wait too long or you might miss your dream property.
If you have any further questions or interested to build your first property in Bali, our team is here to help! Click the link below to book a free consultation with one of our expert real estate advisors.
