Buying real estate in Bali attracts foreign investors from all over the world due to the stable growth of the tourism market, attractive climate and prospects for high profitability. However, for a successful transaction it is important to understand all the stages and legal nuances.
Step 1. Study the legal basis for owning real estate in Bali
Indonesian legislation restricts foreigners from directly owning land, but offers several alternatives:
Long-term lease (Leasehold)
A foreigner can lease land for up to 25-30 years with the right to extend for several more terms.
Land Use Right (Hak Pakai)
Available to holders of a long-term residence visa (KITAS), allows foreigners to own real estate for up to 80 years.
Company Formation (PT PMA)
Opening a local company with foreign capital allows you to buy real estate and land for business or investment purposes.
Step 2. Choose a suitable property
When choosing a property, consider:
Location:
Popular areas: Seminyak, Canggu, Ubud or Uluwatu, each has its own characteristics and advantages.
Purchase purpose:
Decide what is more important – personal residence, rental income or resale at a profit.
Property type:
The choice between a villa, apartment or commercial property directly affects the investment strategy.
Step 3. Conduct a thorough inspection of the property
Conducting a legal examination of the property (Due Diligence) is mandatory. During the inspection, you need to:
Check the seller’s property rights.
Make sure that the property is not encumbered by debts or liens.
Check for all permits and building licenses.
Step 4. Sign a preliminary agreement and make a deposit
After checking all the documents:
Sign a preliminary agreement (Booking Agreement), where you will fix the price and terms of the purchase.
Make a deposit (usually 10% to 30% of the property value).
Step 4. Complete the transaction and register the property rights
At this stage:
The main purchase and sale agreement is signed at a notary.
Taxes and fees are paid (e.g. VAT – 11%).
The property rights are registered and the information is entered into the cadastral register.
Step 5. Receive confirmation of the property rights
The final stage:
Obtaining a certificate confirming your right to own or lease the property for a long time.
Conclusion
Buying property in Bali requires a professional approach, careful verification of documents and compliance with all legal formalities. Contact experts who will help you successfully implement your investment plans and avoid possible risks.