Buying property in Bali as a foreigner is an exciting and potentially lucrative investment – but it can also be complicated if you aren’t armed with all the right information. While it is possible to buy property in Bali as a foreigner, freehold land ownership has different restrictions and regulations.
Here is our ultimate guide to buying property in Bali as a foreigner in 2025.
Can Foreigners Buy Property in Bali?
Yes, foreign buyers can purchase property in Bali. However, and this is where a lot of the misconceptions come from, foreigners cannot own land in Bali. Foreigners will typically have what is known as a “freehold” or a “leasehold” on the land which lasts for 25-30 years.
Can foreign investors own land in Bali?
Foreign investors cannot legally purchase freehold land, full stop. This is because only Indonesian citizens can own land.
Foreigners can lease land through leasehold contracts (Hak Sewi) or legally acquire property under Right to Use (Hak Pakai) or Right to Build (Hak Guna Bangunan, HGB) titles.
Buying Property in Bali - Your Options
Depending on your budget and property needs, here are the options available to you to buy a property in Bali:
1. Leasehold Properties (Hak Sewa)
Leaseholding allows you to use, build, and rent out residential or commercial properties without actually owning the land.
Foreigners enter into agreements with land owners and lease the land for an agreed period of time. This is typically between 25 and 30 years, but can be longer with the possibility of extending the lease when it nears the end of its term.
It’s regarded as the easiest way for foreign individuals or companies to acquire property in Bali, as one of the benefits of a leasehold is that you only need a valid passport and current stay permit.
There is no legal limit on the number of leasehold properties you can buy and no maximum duration. And because you don’t actually own the land, the land owner is responsible for paying land and building tax. Be sure to carry out the necessary due diligence checks to as Bali property scams not unheard of.
2. Hak Pakai - Right to Use
Hak Pakai allows foreigners to hold leasehold titles in their name for an initial term of 30 years, plus indefinite renewal opportunities.
It is different from a leasehold agreement because it allows foreign buyers to sell, transfer, or mortgage the property.
Foreigners need a temporary or permanent residential permit (KITAS or KITAP), or a retirement visa move to Bali and purchase a property under a Right to Use title. You can only purchase one property and there are restrictions on price and size.
3. Hak Guna Bangunan (HGB) - Right to Build
Hak Guna Bangunan – Aka “Right to Build” is eligible for foreign-owned companies – called a PT PMA (Perseroan Terbatas Penanaman Modal Asing) – and allows land use for up to 90 years.
It works just like the Right to Use title but is only available for investment companies and legal entities recognised as Penanaman Modal Asing (PMA) by Indonesian Law.
Apartments & Condos
Foreigners can own apartment units under a Right to Use title, but not the land it sits on.
Villas
Villas are the most popular choice for foreign investors because they tend to be cheap to purchase off-the-plan but can generate large rental income. This is particularly true if you invest in a villa in areas of Bali like Seminyak, Canggu, Uluwatu, and Ubud. Not sure which area suits your lifestyle? Our guide to the best areas to live in Bali covers each area in detail.
Taxes and Fees for Foreigners Buying Property in Bali
When buying a property in Bali, you need to consider additional costs such as legal fees and taxes. Those who buy property under a leasehold agreement are exempt from tax. The land owner will pay tax amounting to 10% of the declared value of the lease.
Here is a rundown of some of the fees you will likely need to pay:
- Legal fees – 1% of the transaction amount
- Buyer’s tax (for Right to Use and Right to Build) – 5% of the property’s declared value
- Annual property tax (PBB) – 0.1% – 0.3% of its value
- Value Added Tax (VAT) – 11% (only if you purchase from a developer)
- Income Tax if renting out property – range from 5% to 35%
- Maintenance and property management fees if renting out property. Property management companies may charge 10-20% of monthly rental income for cleaning, repairs, and communicating with guests
Financing the purchase is another issue altogether, as you won’t be able to get an Australian mortgage for a Bali property purchase.
Risks to Be Aware of
Now that we have gone through the options and the fees you can expect to pay, here are some of the risks you should be aware of before investing in property in Bali.
Nominee agreements are illegal
Buying a property in Bali using nominee schemes is illegal, risky, and unprotected in Indonesian law
Temples or holy sites
New developments are limited near sacred areas like temples or holy sites. Building a new property there is possible, but you’ll need to adhere to strict regulations like height restrictions.
Local customs must be observed
There are rules when building a property in Bali that you respect the Balinese culture. This includes ensuring your property does not get in the way of local customs or spiritual practices.
Environmental hazards
You should consider natural hazards like flooding, earthquakes, and erosion when building or selecting a property in Bali.
When purchasing a property in Bali, it’s important to do your research on the best locations and property types. We recommend hiring an experienced advisor familiar with Indonesian property law who can guide you on the process of purchasing and managing your property.
Simplify Buying Property in Bali As a Foreigner
Venaso Bali Property Group will simplify investing property in Bali by assisting you in obtaining the correct documentation, ensuring your investment is compliant with Indonesian regulations, and taking care of the property management process on your behalf.
Our latest project in Tabanan is on a 30 year lease hold and is pink zoned – meaning it’s approved for tourism and Airbnb investments. To learn more about investing in Bali as a foreigner, get in touch with Venaso Bali today.