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Can Foreigners Buy Property in Bali? (2024 Ultimate Guide)

Words by Bali Invest Team
24 June 2024
Can foreigner buy property in Bali

In recent years, Bali has become a popular destination for international property investment. With its stunning landscapes, vibrant culture, and growing infrastructure, it's no surprise that many are curious about owning a piece of paradise. However, the question remains: Can foreigners buy property in Bali? This ultimate guide for 2024 will provide a comprehensive overview of the regulations, opportunities, and considerations for foreigners looking to invest in Bali's real estate market.

Understanding Indonesian Property Laws for Foreigners

Can foreigners buy property in Indonesia? The answer is yes, but with specific regulations and restrictions. Foreign ownership of property in Indonesia is governed by several laws and regulations designed to balance foreign investment and local interests.

Freehold vs. Leasehold

In Indonesia, property ownership is categorized into two main types: freehold (Hak Milik) and leasehold (Hak Sewa). Foreigners are not allowed to own freehold property. Instead, they can acquire property through a leasehold agreement, typically for a period of 25 to 30 years, with the option to extend the lease.

Right to Use (Hak Pakai)

Another option for foreigners is the right to use (Hak Pakai) title. This title allows foreigners to use and occupy land for residential purposes for an initial period of 30 years, extendable up to a total of 80 years. This title is granted by the Indonesian government and is one of the most common methods for foreigners to secure property in Bali.

can foreigners buy property in indonesia

Steps to Buying Property in Bali as a Foreigner

1. Engage a Local Notary

The first step in purchasing property in Bali is to engage a local notary (notaris). The notary will handle the legal aspects of the transaction, ensuring that all documents are in order and the process complies with Indonesian law.

2. Conduct Due Diligence

Before making a purchase, it's crucial to conduct thorough due diligence. This includes verifying the property's ownership, checking for any outstanding debts or legal issues, and ensuring the property complies with zoning regulations.

3. Secure Financing

Foreigners can finance their property purchase through Indonesian banks, though the process can be complex. It's advisable to have a solid financial plan and consider all associated costs, including taxes, legal fees, and maintenance expenses.

4. Sign the Agreement

Once due diligence is complete and financing is secured, the next step is to sign the sale and purchase agreement (Akta Jual Beli) in the presence of the notary. This agreement outlines the terms and conditions of the sale, including the lease period and any extensions.

Also read: All You Need to Know Before Investing in Bali Properties

International Property Investment Opportunities in Bali

Bali offers numerous investment opportunities for foreigners, from luxurious villas to commercial properties. Here are some of the most popular investment options:


Villas are a popular choice for international investors due to their high rental yields and strong demand from tourists. Investors can purchase villas through leasehold agreements or Hak Pakai titles, providing both short-term rental income and long-term capital appreciation.


Condos offer a more affordable entry point for foreign investors. These properties are often located in prime areas and come with amenities such as pools, gyms, and security. Condos can be purchased under the Hak Pakai title, making them an attractive option for those looking to own property in Bali.

Commercial Properties

Investing in commercial properties, such as restaurants, shops, and offices, can be highly lucrative. Bali's growing economy and tourism industry create a strong demand for commercial spaces. Foreign investors can lease these properties and benefit from the thriving local market.

legal and financial property buying, can foreigners buy a property in indonesia

Legal and Financial Considerations

Taxes and Fees

When purchasing property in Bali, foreigners should be aware of the various taxes and fees involved. These include:

  • Acquisition Duty on Rights to Land and Buildings (BPHTB): Typically 5% of the property's sale value.

  • Annual Property Tax (PBB): Calculated based on the property's assessed value.

  • Notary Fees: Usually around 1-2% of the property's sale value.

  • Legal and Registration Fees: Costs associated with registering the property and obtaining the necessary permits.

Currency Exchange and Transfer

Foreign investors must also consider currency exchange rates and transfer fees. It's essential to work with a reputable bank or financial institution to manage these transactions and ensure compliance with Indonesian regulations.

Also read: Introduction to Tokenization and Fractional Ownership

Challenges and Risks

Market Volatility

Like any real estate market, Bali's property market can be volatile. Investors should be prepared for fluctuations in property values and rental demand, particularly during economic downturns or periods of reduced tourism.

Legal and Regulatory Changes

Indonesian property laws and regulations can change, impacting foreign ownership rights and investment opportunities. It's crucial to stay informed about any legal developments and work with trusted legal advisors to navigate these changes.

Cultural and Language Barriers

Foreign investors may face cultural and language barriers when purchasing property in Bali. Engaging local experts, such as notaries, lawyers, and real estate agents, can help mitigate these challenges and ensure a smooth transaction process.


In summary, can foreigners buy property in Bali? Yes, they can, but it requires navigating a complex legal landscape and adhering to specific regulations. By understanding the options available, conducting thorough due diligence, and working with local experts, foreign investors can successfully purchase and manage property in Bali. With its thriving real estate market and abundant investment opportunities, Bali continues to be an attractive destination for international property investment. Visit Bali Invest for expert assistance with your property purchase in Bali.

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