You’re not the first to fall in love with Bali and dream of owning a private villa in paradise! However, buying property in Bali requires careful research—foreign ownership laws are strict, and scams do happen. But don’t worry—with the right knowledge and guidance, you can secure a legal, profitable investment.
At Miraland, we help investors navigate Bali’s property market safely. Here’s what you need to know before turning your tropical dream into reality.
What You Should NEVER Do: The Nominee Agreement
Let’s start with the biggest risk—the nominee agreement. This setup relies entirely on trust, and unfortunately, many foreigners have lost their investments because of it.
Why is it dangerous?
-
Foreigners cannot own freehold property in Bali—even if married to an Indonesian (unless a prenuptial agreement excludes property rights).
-
In a nominee agreement, an Indonesian citizen holds the property title on your behalf, but legally, they own it. If they decide to sell, transfer, or claim ownership, you have no legal protection.
-
Many investors have faced disputes, lost their villas, or had to pay large sums to reclaim control.
Miraland Team Recommendation: Avoid nominee agreements at all costs. Opt for legal, long-term leasehold options instead.
✅ The Safe & Legal Way: Long-Term Leasehold (Hak Pakai & Hak Sewa)
The best and safest way to secure a villa in Bali is through a long-term leasehold. The initial lease period is typically 25-30 years, often with extension options.
But before you proceed, ask yourself:
Will you live in the villa?
Or will you rent it out for income?
Your answer determines the type of title you need:
1. Hak Pakai (Right to Use) – For Personal Use
-
Allows you to live in the villa but not rent it out commercially.
-
Ideal if you plan to use it as a private residence or holiday home.
2. Hak Sewa (Right to Rent) – For Villa Rental Business
-
Required if you want to generate rental income.
-
You’ll also need a Pondok Wisata (Tourism Accommodation License).
⚠️ Important Notes:
-
Pondok Wisata can only be issued to an Indonesian citizen unless you set up a PT PMA (foreign-owned company), which involves additional regulations.
-
Not all areas in Bali allow rentals! Some zones are strictly residential—always check local regulations before buying.
Miraland Team Tip: If you want a rental villa, look for properties that already have a Pondok Wisata or involve the landowner in obtaining one.
Key Takeaways
✔ Avoid nominee agreements—they’re high-risk and illegal.
✔ Choose a long-term leasehold (Hak Pakai or Hak Sewa) for legal security.
✔ Decide your purpose—personal use (Hak Pakai) or rental business (Hak Sewa + Pondok Wisata).
✔ Check zoning laws—some areas prohibit villa rentals.
Ready to Invest in Your Bali Villa?
Still unsure about Bali’s property laws? Need help finding the perfect villa with the right legal structure?
Contact the Miraland Team today! We’ll guide you through every step—from legal compliance to finding the best investment opportunities.
Your dream Bali villa is closer than you think—let’s make it happen, the right way!