What are the Requirements for a Foreigner to Buy a Property in Bali

Bali is widely recognized as one of the most popular tourist destinations. There is almost no adventurer who has not already visited Bali, or is at the top of his travel list. However, in the last few years, Bali is not only a great tourist destination but also an interesting place to buy real estate. In 2020, sales were slightly stopped, which is understandable due to the global situation with the COVID-19 virus. However, the Indonesian government is doing everything possible to speed up the recovery, and vaccination in Bali is more than successful, looking at the percentage of vaccinated. That the country is recovering from economic stagnation is also shown by the data from 2021 on the need for a short-term visit through Airbnb and, as well as for the purchase of the property. In April 2021, Bali was visited by approximately 8,000 guests per day.

As demand grows, so do prices and taxes. Real estate prices in Bali have risen 20% in the last 4 years and in very popular places prices have jumped up to 40%. It is not a negligible fact that despite the increase in the price, the purchase does not decrease. Equally to this growth, the Indonesian government has also raised taxes on luxury goods and that jump is not at all naive: from 10% to 20% on luxury goods and real estate.

However, to encourage foreigners to invest and buy in their country, the authorities have made some changes to the law on property ownership in Bali. Law 5, which was passed in 1960 and concerns the ownership of our property in Bali by foreigners, has been slightly amended to encourage foreigners to invest in as many as possible. Regulations on foreign ownership of the real estate, but also affordable prices should attract investors.

However, if you are one of the interested buyers of real estate in Bali, do not decide to buy land here so easily. You may have already found a beautiful house with an amazing view at an affordable price in the ads, but that is not all that should interest you. No matter where you buy and what the value of the property is, make sure that this investment is completely safe and stable for you. So it would be good for a foreigner to have some fun with the legal framework of shopping in Bali. Don’t pretend to be too smart and seek expert help for advice or the whole buying process. A warm recommendation is this is an agency that has gathered top experts and if you want to invest in beautiful Bali and watch your assets multiply, you are in the right place.

There are 3 types of rights in Indonesia that should interest you. There are Right to Own or Hak Milik; Right to Bild or Hak Guna Bangunan and Right to Use or Hak Pakai. This story is very important for all of you who would like to buy a property in Bali. Most foreigners have the idea to hire an Indonesian citizen to act on their behalf and thus get Hak Milik. However, if you think about it, you will see how risky this business is. What if your agent decides to take your property? How can you and can you protect yourself from this part ?! We are telling you this from experience, in many cases, this is exactly what happened.

Okay, if this plan is pointless at the start, let’s check together what is the surest way to become a landowner in Bali. Of course, hiring a foreign-owned company is a great option. Another name: a foreign limited liability company. In this way, you can very easily acquire Hak Guna Bangunan, that is, the right to build. If you manage to realize Hak Guna Bangunan and Hak Pakai, you gain the right to build and use property anywhere in Indonesia.

The fact you need to be aware of is that this right is not infinite. This right lasts for 25 years, after which there is a possibility to extend the ownership for up to 80 years. If this period is not enough for you, we are sorry, you will have to wait for it to expire to be able to apply for a further extension of your rights.

Hak Pakai refers to the urban zone of Bali. This means that this right is related to the land on which there are already buildings, certain businesses, shops or tourist facilities. With this right, you gain the opportunity to use them. Ownership of agricultural or green zones in Bali is simply not possible.

Thus, Hak Pakai provides you with the acquisition and use of the property for personal use, and therefore one person can own only one property. If you want more property in this area, you need to have the right to build.

Either way, if you want to get into this process, and any right to it, be prepared for a process that will take between 2 and 10 weeks. It may seem like too long period at the moment, but for an area like Bali, it’s worth waiting even longer. The whole process begins with the submission of a completed form to the Indonesian National Office. Use this form to request a property certificate and all supporting documents. You will not be required to complete this application in person, but a representative may do so on your behalf. After this, it is necessary to settle all obligations and submit proof of payment for the land and other conditions for obtaining Hak Gun and Hak Pakai. You will also need an appropriate building permit. What the company you work with will surely guide you in is monitoring the checklist and the land when buying real estate in this place. Leave everything to the chosen company and as soon as you get the certificates from BPN, most of the story is over and congratulations; you have a property in the most popular place in the world.

At the very end, we will remind you once again to be very careful when it comes to the trust of individuals from the bar. Maybe you are a person who is 100% jealous of people and you can be just as sure that a certain person does not have bad intentions, but think twice. Human relationships are changeable, as are family situations that you or the other person may fall into (divorce, death, or illness of a family member, etc.). We are sure that you do not want to get involved in a business where you will not have legal rights to control the property with your money.

Ricardo is a freelance writer specialized in politics. He is with from the beginning and helps it grow. Email: richardorland4[at]