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Buying property or land in Bali as a foreigner starts with one question: what can you legally hold? Indonesians can own land outright as Hak Milik. Foreigners cannot hold freehold, but can use a long lease, a Hak Pakai title with a residence permit, or an HGB title through a foreign-owned company. The structure decides everything that follows, from the deed to the tax and what your heirs receive.
Fees: the PPAT fee on a sale deed is capped at 1% of the value up to Rp 500 million, falling step by step to 0.25% above Rp 2.5 billion. Taxes are separate. See notary fees in Bali.
Can a foreigner buy property in Bali, and how can it be held?
| Title | Who can hold it | Term |
|---|---|---|
| Hak Milik (freehold, SHM) | Indonesian citizens only | No time limit |
| Hak Guna Bangunan (HGB) | Indonesians and companies, including a PT PMA | 30 years, extendable by 20 and 30, up to 80 in total |
| Hak Pakai (right to use) | Foreigners with a KITAS or KITAP | Up to 30 years at first, up to 80 in total |
| Hak Sewa (lease) | Anyone, by contract with the owner | Usually 25 to 30 years, renewal set in the deed |
The years for Hak Pakai have been changed by regulation before, so the current rule is confirmed for each case. A PT PMA route needs care too: Bali has closed 64 business classifications to foreign-owned companies, including owned or leased real estate, so the company's activity is checked before anything else. For what each certificate says, see land certificates in English. The steps for holding land under Hak Pakai are on Hak Pakai in Bali, and the company route is on HGB through a PT PMA.
What are the steps to buy property in Bali, and who does what?
- Due diligence. The certificate is checked at BPN, the seller against the certificate, plus zoning, permits, tax and any heirs. Done for you, before money moves. See property due diligence.
- The agreement. A sale and purchase agreement (PPJB) or a lease draft sets the price, the conditions and the deadlines. Have it reviewed before you sign or pay a deposit. See contract review.
- Payment. Funds through escrow, released at legal milestones, so nothing goes to the wrong person.
- The deed. For a sale, the PPAT drafts the AJB in Indonesian with an English version and you sign in the PPAT's presence. A lease is signed as a notarial deed. See PPAT and sale deeds and lease agreements.
- Taxes. The PPAT collects BPHTB (5% of the value above the regional threshold) from the buyer and 2.5% final income tax from the seller before registration. New property from a developer adds 11% VAT.
- Registration. The PPAT files the deed at BPN, which records the transfer and issues the certificate in the buyer's name, usually in 2 to 8 weeks.
- The new certificate. Collected from BPN and handed over with the signed deeds and tax receipts. A typical purchase runs 8 to 10 weeks from deposit to certificate.
What should a foreign buyer never do in Bali?
Do not buy through a nominee. A nominee agreement is void under Article 26(2) of the Basic Agrarian Law: the land falls to the State and the law bars you from recovering what you paid. Do not rely on a PPJB alone, because it does not move title. And do not assume the notary is on your side: the notary and PPAT act for the transaction, not for the buyer.
What do I need to build on or rent out my Bali property?
If you plan to build, renovate or rent the villa, check the PBG and SLF early. A villa offered for rent needs an SLF, and a building without permits is a problem you inherit from the seller.
