Leasehold (Hak Sewa)

Foreign individuals or companies through a private lease agreement

Lifestyle buyers, holiday homes, rental investment with lower upfront cost

Commonly 25 to 30 years depending on agreement

Can be extended based on negotiation and contract terms

Simpler structure and lower entry cost

Ownership returns to landowner when lease expires if not extended

Hak Pakai (Right to Use)

Foreign individuals with legal stay status such as KITAS or KITAP

Personal residence and long term stay

Usually around 25 to 30 years

Can be renewed and extended up to around 80 years in total depending on regulation

More secure legal structure for residential use

Not ideal for broader commercial or development purposes

HGB via PT PMA (Right to Build)

Foreign owned company established in Indonesia

Commercial property, villa business, property development, larger scale investment

Usually around 30 years

Can be renewed and extended up to around 80 years in total depending on compliance

Strongest legal control for foreign commercial use

Requires company setup, ongoing compliance, and higher administrative cost

You want a holiday home or private residence in Bali

Hak Pakai

This is one of the most suitable legal options for foreigners who want to use a property for personal residential purposes while staying compliant with Indonesian law.

You want a simpler and more affordable way to control a property

Leasehold

Leasehold is often the most practical entry point for foreigners who want lower upfront costs and flexibility without setting up a company.

You want to run a villa business, rental operation, or property development project

HGB via PT PMA

This option offers stronger legal control for commercial use and is generally more suitable for foreigners planning to operate a business or larger scale investment in Bali.

You want long term investment potential with more legal protection

HGB via PT PMA or Hak Pakai

The right choice depends on whether the property is for private living or commercial use, but both structures can offer a stronger and more secure legal framework than informal arrangements.

1

Understand legal ownership options

Learn about leasehold, Hak Pakai, HGB, or PT PMA and how each affects your rights and usage.

2

Consult a notary or legal advisor

Get professional guidance to ensure compliance with Indonesian property laws.

3

Obtain NPWP (tax number)

Required for tax payments and legal transactions in Indonesia.

4

Set up PT PMA (if needed)

Required if you plan to use HGB or run a commercial property business.

5

Prepare required documents

Includes passport, KITAS (if applicable), company documents, and proof of funds.

6

Find the right property

Choose a property that matches your goal and is located in the correct zoning area.

7

Conduct due diligence

Verify land certificate, zoning, ownership, and ensure there are no disputes.

8

Check building permits (IMB or PBG)

Ensure all buildings are legally permitted and compliant with regulations.

9

Make an offer and negotiate

Agree on price, terms, and payment structure with the seller.

10

Sign preliminary agreement (PPJB or LOI)

Initial contract outlining terms before final transaction.

11

Pay deposit

Typically 10–30 percent to secure the property.

12

Legal verification by notary

The notary checks documents, ownership, and legality of the transaction.

13

Sign Sale and Purchase Deed (AJB)

Official legal transfer signed before a certified notary.

14

Pay taxes and fees

Includes BPHTB, income tax, notary fees, and registration costs.

15

Register ownership at BPN

The land certificate is updated under your name or company.

16

Complete handover

Receive keys and finalize the transaction before using or managing the property.

Can foreigners legally buy property in Bali?

Yes, foreigners can legally control property in Bali, but not through direct freehold ownership (Hak Milik). The most common legal options are leasehold, Hak Pakai (Right to Use), or HGB through a PT PMA company, depending on whether the property is for personal use, rental, or business purposes.

Can foreigners own freehold property in Bali?

No, foreigners cannot directly own freehold property in Bali because Hak Milik is reserved only for Indonesian citizens. If a foreign buyer wants stronger legal control, they usually consider Hak Pakai for residential use or HGB through a PT PMA for commercial use.

What is the safest way for a foreigner to buy property in Bali?

The safest approach is to use a legal ownership structure that matches your purpose, work with a licensed notary or legal advisor, verify the land certificate and zoning, and avoid nominee arrangements. A secure transaction should always include due diligence, proper contracts, and official registration.

What is leasehold property in Bali?

Leasehold means you buy the right to use a property for a fixed period, usually around 25 to 30 years, with the possibility of extension depending on the agreement. It is one of the most common options for foreigners because it is simpler, more affordable, and suitable for lifestyle use or rental investment.

What is Hak Pakai in Bali?

Hak Pakai, or Right to Use, is a legal title that allows eligible foreigners with legal stay status in Indonesia to use property for residential purposes. It is generally more secure than informal arrangements and is better suited for personal living rather than broad commercial activity.

What is HGB and when is PT PMA needed?

HGB, or Hak Guna Bangunan, is the Right to Build and is commonly used by foreign-owned companies in Indonesia. If you plan to run a villa business, develop property, or hold real estate for commercial purposes, setting up a PT PMA is usually required to access HGB legally.

How long can foreigners hold property rights in Bali?

Depending on the structure, foreigners may control property for an initial period of around 25 to 30 years, with extensions that can reach up to around 80 years in total. The exact duration depends on the ownership type, contract terms, and legal compliance.

What taxes and fees should buyers expect?

Property buyers in Bali should budget for transfer tax, notary fees, legal fees, possible registration fees, and any ownership-structure-related costs. The exact amount depends on whether the transaction is leasehold, Hak Pakai, or HGB through a PT PMA, so it is important to calculate the full cost before signing.

Why is land zoning important before buying property in Bali?

Land zoning determines what can legally be built and operated on the land. For example, zoning affects whether you can build a villa, run a business, or develop a commercial property. Buying land without checking zoning first can create serious legal and financial problems later.

What due diligence should be done before buying?

Before buying property in Bali, you should verify the land certificate, ownership history, tax status, boundaries, zoning, road access, and building permits. You should also make sure there are no active disputes, hidden liabilities, or legal restrictions affecting the property.

Is using a nominee legal in Bali?

No, nominee arrangements are widely considered high risk and can create major legal issues for foreign buyers. Because the Indonesian nominee remains the official legal owner, the foreign party may have very limited protection if conflicts arise. Using a fully legal structure is far safer.

What is the first step to buying property in Bali?

The first step is understanding which legal ownership structure fits your goal. Once that is clear, the next steps usually involve consulting a notary or legal advisor, preparing the required documents, choosing the right property, and starting due diligence before any payment is made.