Thinking of Buying Property in Bali? Read This First!
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Bali’s real estate market is booming, attracting investors and lifestyle buyers from around the world. However, property ownership laws for foreigners are different from those in many other countries. Simply put, there are only two safe and legal ways for foreigners to own property in Bali: Leasehold or Freehold through a PMA.
1. Leasehold (Hak Sewa) – The Most Common Option
Leasehold is the easiest and most flexible way for foreigners to invest in Bali real estate. You lease the land or property for a set period (usually 25–50 years), with options to extend. While you don’t own the land, you have full rights to use, rent out, and even sell the remaining lease period. This is the preferred option for villa rentals and long-term investments.
Why Choose Leasehold?
- More affordable than freehold
- No need for an Indonesian partner or company for lease purchase
- Can be extended or resold
2. Freehold (Hak Milik) via a PMA – Business Investors Only
Foreigners cannot directly own freehold property in Bali. However, if you want full ownership rights, you can set up a PMA (Foreign-Owned Company, kind of an LLC), which allows you to acquire land under a Hak Guna Bangunan (Right to Build) title. This is ideal for those planning to develop properties or run a business.
Why Choose a PMA?
- Full legal control through your company
- Can buy, sell, or lease the property
- Secure long-term ownership (up to 80 years)
Avoid Illegal Ownership Structures!
Some foreigners try to bypass the law by using an Indonesian nominee to hold property on their behalf. This is highly risky and illegal—if the nominee claims the property, you have no legal rights. Always stick to Leasehold or PMA ownership to ensure a secure investment.
Need Expert Guidance?
Bali real estate is an incredible opportunity—but only if you do it right! Whether you're looking for a dream villa or a profitable investment, we can help you navigate the process legally and safely. Contact us today to explore the best options for you!
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