Yes, of course!
Thanks to recent government regulations, foreigners can legally buy property in Bali.
But if you’ve started digging into it, you’ve probably noticed—it’s not that simple.
There’s a lot to consider: laws, zoning, ownership types, location, ROI…
And let’s be honest, there’s a ton of confusing and even conflicting information out there.
That’s exactly why we put together this guide.
Whether you’re a first-time buyer or a seasoned investor, we’ll walk you through everything you need to know to safely and legally invest in Bali real estate—step by step.
Is It Legal for Foreigners to Buy Property in Bali?
Yes, it’s legal for foreigners to buy property in Bali—but there are important rules to follow.
You can’t directly own freehold land (Hak Milik) as a foreigner in Indonesia (including Bali), but there are legal structures that allow you to own or control property safely and officially.
The two most common options are:
- Setting up a foreign-owned company (PT PMA)
- Entering into a leasehold agreement
Both are recognized under Indonesian law and widely used by foreign investors. Let’s take a closer look at the pros and cons below:
| Ownership type | Pros | Cons |
Foreign-owned Company (PT PMA) | Legal ownership through a company | High initial investment requirements |
| Full control | Complex setup and bureaucracy | |
| Ideal for business or development | Ongoing compliance and reporting | |
| Leasehold | It is easier and less expensive to set up PT PMA | You are essentially renting the property for a set period |
| Flexible terms with possible extensions | Value drops as the lease expires | |
| It can be used for residential or commercial purposes | Renewal can be uncertain |
PT PMA (Foreign-Owned Company)
If you’re looking for the closest legal option to owning land in Bali like a local, setting up a PT PMA (foreign-owned company) is the way to go.
With a PT PMA, your company can hold a Right to Build (HGB) or Right to Use (HP) title. This means you can:
- Fully control the property
- Run a legal rental business (like an Airbnb or villa)
- Sell, lease, or pass it on to your family
- Get long-term rights—up to 80 years (30 + 20 + 30 years)
In simple terms, you control the company, and the company controls the land. It’s a safe and legal way for foreigners to own property in Bali.
But to do this, you’ll need:
- IDR 10 billion (~USD 670,000) in total investment
- IDR 2.5 billion (~USD 167,000) in paid-up capital
- One local Indonesian shareholder (for legal purposes)
If this feels too complicated or expensive, don’t worry. There’s a much easier option—leasehold.
Leasehold
Leasehold is a popular option among foreigners who want to invest in Bali without setting up a company.
With this structure, you rent the land for a long term, typically 25 to 30 years, with potential for renewal.
Here’s why many foreign buyers choose leasehold:
- It’s more affordable upfront
There’s no need to establish a business entity - The process is straightforward and fully legal
- You can live on the property and, in some cases, rent it out (depending on the agreement)
Just one thing to remember. Once the lease period ends, the land and buildings return to the original owner.
Common Misunderstandings
One of the biggest misconceptions we hear is:
“Can’t I just use an Indonesian nominee to buy land for me?”
This used to be a common workaround, but it’s now illegal and extremely risky.
The Indonesian government has cracked down hard on nominee agreements. If anything goes wrong, you risk losing your entire investment.
That’s why it’s essential to stick to legal, recognized structures like PT PMA or leasehold agreements.
Also read Bali Real Estate: Why The Nominee System Is A Risky Bet.
What Is the Process of Buying Property?
Now that you know your legal options, let’s break down how the buying process works for each method—PT PMA and leasehold.
If You’re Using a PT PMA (Foreign-Owned Company)
This is the path for those who want long-term control and legal ownership rights through a company structure.
Step 1: Set Up Your PT PMA
- Register through the Indonesian Investment Coordinating Board (BKPM)
- Define your company’s business activities (e.g., property development or rental)
- Deposit the required capital: IDR 10 billion investment plan, IDR 2.5 billion paid-up capital
- Appoint at least one Indonesian shareholder (typically for compliance)
Step 2: Find a Legally Zoned Property
- Work with a licensed notary or real estate agent
Make sure the zoning fits your intended use (residential or commercial) - Verify the land certificate type (SHM, SHGB, or SHP)
Step 3: Conduct Legal Due Diligence
- Check the land’s ownership history and boundaries
- Confirm there are no disputes, tax issues, or other encumbrances
- Ensure all building permits (IMB/PBG) and licenses are valid
Step 4: Sign the Sale-Purchase Deed (AJB)
- Finalize the transaction through a licensed PPAT (land deed official)
- Sign the Akta Jual Beli (AJB) in front of the notary or PPAT
- Obtain a tax ID (NPWP) for your company
- Pay the 5% acquisition tax (BPHTB)
Step 5: Transfer and Register the Land Title
- The title is officially transferred to your PT PMA
- It’s then registered with the National Land Agency (BPN)
- You’ll receive the land certificate under HGB or HP
If You’re Buying a Leasehold
If you’re not ready to open a company, here’s how the leasehold process works:
Step 1: Find a Leasehold Property
- Confirm the property has valid ownership and a clear title
- Ensure the owner agrees to lease the land for 25–30 years or more
Step 2: Due Diligence and Background Check
- Verify the land certificate
Check zoning to match your intended use
Confirm the land is free from debts, disputes, or legal issues
Step 3: Draft and Sign a Lease Agreement
Make sure the agreement includes:
- Lease period
- Extension terms
- Usage rights
- Payment terms
Once due diligence is complete, transfer funds and sign the lease in front of a licensed notary to make it legally binding.
Step 4: Notarization
- The notarized lease is attached to the land certificate
- This serves as your legal proof of leasehold rights
Note: Always work with a licensed notary (PPAT) and a trusted real estate lawyer who understands foreign ownership laws in Indonesia. Avoid nominee structures—they’re illegal and unenforceable.
Also read Investing in Bali Real Estate: Tips for First-Time Buyers.
Final Thoughts: Is It Worth It?
Buying property in Bali takes time, effort, and the right guidance.
The good news? Yes—it’s possible for foreigners to invest here.
The right path depends on your goals, budget, and how hands-on you want to be.
Some investors prefer full control and go with a PT PMA. Others want a simpler setup and choose a leasehold.
There’s no single “best” way—only the best way for you.
And that brings us to you.
At Ilot Property Bali, we make the process simple and stress-free.
Whether you want to buy, lease, or build, we’ll guide you every step of the way—based on your goals, your needs, and your budget.
Wherever you are in your investment journey, we’re here to give you clear, honest guidance so you can move forward with confidence.
If that’s something you like, click the link below to book your free, customized investment plan in Bali.
