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Thinking of Buying Property in Bali? Read This First!

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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FAQs

What’s the safest way for foreigners to buy property in Bali in 2025?

The safest way for foreigners to buy property in Bali is through Leasehold agreements or by setting up a PMA (foreign-owned company). These options ensure your investment is legally protected under Indonesian law.

Is it possible to buy property in Bali with full ownership as a foreigner?

Foreigners can’t directly buy freehold property in Bali, but by creating a PMA company, they can secure long-term property rights under a Hak Guna Bangunan title, giving them control for up to 80 years.

What legal risks should foreigners know before buying property in Bali?

When planning to buy property in Bali, foreigners should avoid using Indonesian nominees to hold property on their behalf. This practice is illegal and offers no legal protection if ownership is challenged.

What’s the most flexible option for foreigners who want to buy property in Bali for investment?

For those wanting to buy property in Bali for rental income or resale, Leasehold titles offer flexibility, lower costs, and the option to resell or extend the lease, making it the preferred choice for investors.

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