CAN A FOREIGNER OWN PROPERTY IN BALI?

Yes, a foreigner can own property in Bali, but there are specific regulations and limitations. Here are the main ways a foreigner can legally hold property in Bali:

1. Hak Pakai (Right to Use)

• Description: This title allows foreigners to use land or property for residential purposes.
• Duration: Initially granted for 30 years, it can be extended for two additional 20-year terms, making a total of 70 years.
• Requirements: Foreigners need to hold a temporary or permanent residential permit (KITAS or KITAP), or a retirement visa for those aged 55 and above.

2. Hak Sewa (Leasehold)

• Description: Foreigners can lease land or property for a specified period.
• Duration: Lease terms typically range from 25 to 30 years, with possibilities of renewal. Some lease terms can extend up to 99 years.
• Flexibility: Lease agreements are relatively straightforward and are considered secure forms of property rights for foreigners.

3. Hak Guna Bangunan (Right to Build)

• Description: This title allows the holder to construct and own buildings on the land.
• Restrictions: This title is generally reserved for Indonesian legal entities, including PT PMA (foreign investment companies).
• Duration: Initially valid for 30 years, extendable for 20 years, with a potential further extension for another 30 years.

Requirements and Procedures

• Legal Framework: Foreigners must engage with licensed notaries (PPAT) to handle the legal aspects of property transactions.
• Taxes and Fees: Buying property under a leasehold agreement usually exempts the buyer from property taxes, while buying under the right-to-use title incurs a buyer’s tax of 5% of the declared property value.
• Visa Requirements: Foreigners need a valid visa, such as a Second Home Visa, which requires proof of funds or property ownership amounting to at least IDR 2 billion.

Additional Considerations

• Zoning Laws: Ensure the property complies with local zoning regulations.
• Insurance: Consider obtaining property insurance to protect against risks.
• Legal Advice: It is advisable to consult with legal experts to navigate the complex property laws and ensure compliance.

These options provide legal and secure ways for foreigners to invest in property in Bali. For more detailed information and personalized assistance, consulting with local property experts and legal advisors is recommended.

Sources:

• Invest in Asia
• Exotiq Property
• Ilot Property Bali