- Buying land in Bali with leasehold ownership is much cheaper than the freehold.
- Physical inspection is crucial to verify that the land is legally safe and has no potential issues.
- It’s always best to engage a professional to navigate all processes and avoid any mistakes.
Have you been considering investing and buying land in Bali as foreigner? Its beautiful location with stunning nature and unique culture makes it an attractive option for many foreign investors. However, before you jump in, you need to consider some important things.
To help you navigate through the purchasing process, we’ve listed down the step-by-step checklist. From finding the right land to defining the legal process and more, we’ll cover everything!
So, let’s dive in and explore everything you need to know about buying land in Bali!
We hope you enjoy this article.
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Can Foreigners Buy Property in Bali?
The short answer is yes, foreigners can buy property in Bali, but not in the same way Indonesian citizens do. Under Indonesian law, foreign nationals cannot hold Hak Milik (Freehold title), which is strictly reserved for Indonesian citizens.
However, as a foreigner (including Australians, Americans, and Europeans), you can legally and safely acquire property through two primary methods:
Leasehold (Hak Sewa): This is the most popular and straightforward method for foreigners. You lease the land or property for a set period, typically 25 to 30 years, with a guaranteed option to extend (up to 80 years total). The property is under your name for the duration of the lease.
Corporate Ownership (PT PMA): If you want to buy land for commercial purposes or want stronger ownership rights, you can set up a Foreign Investment Company (PT PMA). Through a PT PMA, you can acquire Hak Guna Bangunan (Right to Build) and Hak Pakai (Right to Use) titles.
Understanding these legal structures is the most crucial step in how to buy property in Bali as a foreigner safely.
To answer any of your questions, we’ve made a list of essential information so you can find it right at your fingertips!
Finding the Right Land in Bali
Buying land or property in Bali is not just about getting a good deal, but finding land that has the potential!
When choosing location, consider accessibility, proximity to amenities, and potential for development. Locations near tourist spots/upcoming developments tend to have a higher appreciation in value.
To get started, simply ask yourself questions like: what developments are happening in the area? How close is it to the main roads or points of interest? What are the rental prices like? and the ultimate question is can you buy property in Bali ?
It’s also important to consider the intended use of the land and any local regulations or zoning laws that may impact your plans.
Bali is a small island and every area has its own potential for growth and development. By doing research, you can identify the potential areas & plan your investment accordingly.
See also: 8 Best Areas to Invest in Bali Real Estate (Plus Upcoming Areas)
5 Key Steps to Buying Land in Bali
After successfully locating a preferred plot of land, your next steps will involve legal and negotiating processes to finalize the purchase. Here are 5 key steps to buying land in Bali.
1. Getting a legal representative or agent to help buying land in Bali
Buying land in Bali can be complex with legal and cultural things. Engaging a legal representative or trusted real estate agent can help you navigate the process smoothly.
If you do not speak the local language, having a real estate agent who can communicate effectively with all parties involved can ensure a smooth process.
These professionals have a thorough understanding of the local laws, regulations, and cultural practices. And with their expertise, a right and reliable agent will assist you with everything, from doing inspection on the land to closing a good deal.
2. Conducting due diligence on the land
Before making an offer, conduct thorough due diligence which includes a physical inspection on the land. This can take around two weeks up to one month.
This will ensure that there are no disputes or potential issues, so you can rest easy knowing your purchase has no problem.
You will need to gather information and work with agents or other professionals to go through these points:
- Checking the land status to verify it is legally available and that the seller is the rightful owner.
- Checking the zoning regulations and permitted land usage in the area (e.g., residential, commercial, agricultural, etc.).
- Verifying the exact boundaries and making sure they match the ones described in the land certificate.
- Verifying if there are any outstanding taxes or fees.
- Checking for any potential environmental issues.
- Checking the availability and quality of infrastructure in the area.
3. Negotiating and Signing the Arrangement for Buying Land in Bali
This is where you can potentially save thousands of dollars by doing some negotiation tactics!
Do your research to give a good idea of the price of land for sale in Bali and determine a fair offer. Additionally, understanding the seller’s motivation can help you negotiate a better price or terms.
If the seller is not willing to budge on the price, negotiate other terms that can be beneficial to you. Ask for a longer settlement period, the inclusion of furniture, or covering some transaction costs.
The next step is to sign a Sales and Purchase Agreement (SPA). The SPA outlines the terms & conditions of the Bali land for sale, including the purchase price, payment schedule, and any contingencies.
Once signed, pay a deposit that costs around 10% of purchase price.
4. Closing the deal
You’re one step closer to owning your dream land in Bali! It’s time to seal the deal. Don’t let your guard down just yet, there are still tasks to finalize the deal of buying land in Bali.
Firstly, make sure that all the necessary paperwork is in order. This may include important legal documents like the land certificate and building permits if you plan to build.
Next, ensure that all taxes and fees are paid in full before closing the deal. You don’t want any surprise bills popping up after you’ve already closed the transaction! You’ll also need to provide proof of payment to the seller, so keep that in mind.
5. Registering the land
Congratulations on becoming a landowner in Bali! Now that you’ve closed the deal and received the land certificate, the final step is to register the land.
To register your land, you will need to work with a notary public or a land office (also known as Badan Pertanahan Nasional / BPN). You’ll need to provide them with the land certificate, as well as relevant documents such as the land survey and tax receipts.
Once the registration is complete, you will receive an updated land certificate. It reflects your ownership and crucial to keeping your land secure. So, keep it in a safe place, and make copies for your records.
See also: Buying Property in Bali: Top Mistakes You Should Avoid
FAQ About Buying Land in Bali
Can a foreigner buy property in Bali? Yes, foreigners can acquire property in Bali safely through a Leasehold agreement (Hak Sewa) or by establishing a foreign-owned company (PT PMA) to obtain Right to Build (Hak Guna Bangunan) titles.
Can foreigners own land in Bali permanently? No, foreigners cannot permanently “own” land under a Freehold title (Hak Milik). However, Leasehold agreements can be secured for up to 80 years, and PT PMA ownership provides long-term, legally backed control of the land.
Can Australians buy property in Bali? Absolutely. Australians make up a large percentage of foreign property investors in Bali. The rules for Australians are the same as for any other foreign nationality: you cannot buy freehold, but you can securely lease property or invest via a PT PMA.
How to buy land in Bali as a foreigner? The best way to buy land is to: 1) Hire a reputable local real estate agent, 2) Engage a notary (PPAT) for legal due diligence, 3) Decide between a Leasehold or PT PMA structure, and 4) Sign a legally binding Sales and Purchase Agreement (SPA).
Ready to Start Buying the Best Plot of Land or Property in Bali?
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