Can Foreigners Buy a Property in Bali?

Foreigners can purchase property in Bali through the right to use land ownership, provided they meet the requirements set by the Indonesian government. There are several options for land ownership that can be taken by foreigners in Bali, namely the Right to Use, the Right to Build, and Ownership Rights.

The Right to Use is a right granted by the state to Indonesian citizens or Indonesian legal entities to use land owned by the state or by others who have the land rights for a certain period. Foreigners can obtain the Right to Use land in Bali through a company established in Indonesia.

The Right to Build is the right to build and own a building on land owned by others for a certain period. Foreigners can obtain the Right to Build on land in Bali, provided that the land is owned by an Indonesian individual or legal entity.

Ownership Rights entail full ownership of both land and the buildings on it. Ownership Rights can only be held by Indonesian citizens and Indonesian legal entities. Therefore, foreigners cannot have Ownership Rights over land in Bali but can have the Right to Use or the Right to Build.

Properties in Bali are an attractive investment for foreigners. Bali’s breathtaking natural beauty and rich culture make it a popular tourist destination worldwide. However, for foreigners, there are several things to consider before purchasing property in Bali.

Property Ownership Limitations

Foreigners are only allowed to own property in Indonesia in the form of the right to use for a maximum of 30 years, extendable for an additional 20 years. However, there are alternative ways, such as establishing a local company in Indonesia and holding ownership rights over that company.

Property Location

Choose a property location that suits your needs and investment goals. Consider factors such as tourist attractions, security, and accessibility. Bali offers various types of properties ranging from houses to luxurious villas with beautiful sea views.

Land Ownership Status

Ensure that the property to be purchased has a clear and valid land ownership status. There have been cases in Bali where purchased land did not have a clear ownership status, leading to issues for the buyers later on.

Property Price

Consider the price of the property as well. Property prices in Bali can vary depending on the location, type, and condition of the property. Additionally, make sure that the offered price is reasonable and commensurate with the quality of the property.

Additional Costs

Ensure that additional costs such as taxes and property document processing fees are included in the budget. There are various additional costs to consider, such as notary fees, registration fees, and attorney fees.

Conclusion

Purchasing property in Bali for foreigners can be a profitable and enjoyable investment. However, make sure to pay attention to the above-mentioned aspects and understand the applicable regulations. Do not hesitate to seek assistance from reliable property agents who understand the requirements for purchasing property in Bali as a foreigner. By considering all these factors, foreigners can choose the right property and gain benefits from property investment in Bali.