Can Foreigners Own Property in Bali? Here's What You Need to Know

If you've ever visited Bali and thought to yourself, "I could live here", you're definitely not alone.

With its tropical charm, vibrant culture, and growing expat community, Bali has become more than just a vacation destination — it's a place where many dream of building a second home or even starting a new chapter altogether. But when it comes to owning property as a foreigner in Indonesia, things get a little... nuanced.

So, let’s clear the fog. Can foreigners' own property in Bali? The short answer is yes — but not in the way you might expect.

Understanding Property Ownership in Indonesia

Indonesia has a unique legal framework when it comes to land and property ownership, and it's crucial to understand the basics before making any commitments.

There are several types of ownership recognized in Indonesian law:

• Hak Milik (Freehold) – This is the strongest form of land ownership in Indonesia. However, it is only available to Indonesian citizens.
• Hak Pakai (Right to Use) – This allows foreigners to legally use a property, and under certain conditions, even hold a land certificate in their name. It’s often used for residential purposes. Typically, 30 years + renewals (up to ~80 years) for Foreigners with KITAS/KITAP.
• Hak Sewa (Leasehold) – This is the most common and practical method for foreigners. It allows you to lease a property for a set period, typically 25–30 years, renewable Foreigners Lease a villa or land from a local owner.
• Hak Guna Bangun (Right to Build) - This title allows the holder to build and own structures (like villas or apartments) on Indonesian land, but not the land itself. HGB is typically valid for 30 years, extendable up to 80 years, and is commonly used by foreign investors who set up a PT PMA (a foreign-owned limited liability company in Indonesia).

While a foreigner can’t own freehold land directly, you can own a property in Bali through leasehold agreements, and legally secure long-term rights over land or buildings.

So... Can Foreigners Own Property in Bali?

Yes — just not in the traditional freehold sense.

Foreigners can’t directly own land in Bali but can legally lease property for extended periods under Indonesian law. And with the right guidance and legal framework, leasehold can be a secure, smart, and flexible solution.

Best options for foreigners

1. Leasehold (Hak Sewa)
   Ideal for most expats and digital nomads. You lease from a local owner for a defined period (often 25–30 years), with renewal clauses. Leasehold titles are legally sound and widely used.
   Tips: Always vet the seller, have the lease notarized (PPAT), register it, and negotiate strong renewal terms
2. Right to Use (Hak Pakai)
   If you hold a KITAS or KITAP, this gives you long‑term usage rights (up to ~80 years). It’s more secure than leasehold and the closest alternative to freehold for individuals
3. Via PT PMA company – Right to Build (HGB)
   For investors aiming to build, rent out, or develop commercial properties, a PT PMA can secure an HGB title. These last up to ~80 years and are held by a company structure
   Note: Setting up a PT PMA demands capital (around IDR 10 billion), licenses, and local oversight

Avoid risky shortcuts

• Nominee ownership: putting titles in an Indonesian’s name on your behalf is illegal and precarious.
• Improper agents or notary relationships: unscrupulous brokers take advantage—always hire licensed experts and confirm developer credentials.

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At Property-Plaza.com, we connect you with hand-verified leasehold properties from legitimate owners, cutting out the scams and confusion. Explore Bali with confidence and let your property journey start on the right foot.