Real Estate Bali: Renting or Buying Property in Bali as a Foreigner

Bali has become a hotspot for expatriates, digital nomads, and investors due to its tropical climate, affordable cost of living, and growing real estate market. However, foreigners cannot directly own land in Indonesia, including Bali. Instead, they must use legal structures such as leasehold agreements or company ownership. This guide covers the process, costs, and legal considerations for foreigners renting or buying property in Bali.

Renting Property in Bali

Finding a Rental Property

Foreigners can rent villas, apartments, or houses in Bali through:

• Online Listings – Websites like Rumah123, Bali Budget Housing, and Facebook groups offer numerous listings.
• Real Estate Agents – Using a local agent can help navigate contracts and negotiations.
• Direct Landlords – Many property owners advertise through signs and word-of-mouth.

Rental Agreements & Requirements

Most rental agreements in Bali are for 1-5 years and require:

• Security deposit (1-3 months’ rent).
• Full payment upfront for long-term leases (many landlords prefer yearly payments).
• Tenant responsible for utilities (electricity, water, internet).

Average Rental Prices (2024 Estimates)

Rental costs depend on the location, property type, and lease length:

• Canggu – $700 – $3,000 per month (popular for expats & digital nomads).
• Seminyak – $800 – $4,000 per month (luxury & tourist area).
• Ubud – $500 – $2,500 per month (nature & wellness hub).
• Sanur – $600 – $2,500 per month (family-friendly).

Buying Property in Bali as a Foreigner

Can Foreigners Own Property in Bali?

Foreigners cannot own freehold land in Indonesia, but they have legal alternatives:

1. Leasehold Agreement (Hak Sewa) – Foreigners can lease land for up to 30 years, with extensions up to 80 years.
2. Right to Use (Hak Pakai) – Allows foreigners to own a house but not the land (valid for 30 years, extendable).
3. Foreign-Owned Company (PT PMA) – Foreigners can establish a foreign-owned company to legally purchase commercial property or land.

Steps to Buying Property in Bali

1. Choose the Right Ownership Structure

• Leasehold for personal use.
• Hak Pakai for long-term residence.
• PT PMA for investment or commercial property.

2. Work with a Lawyer & Notary

• Verify land ownership & title deed.
• Check zoning regulations (some land is restricted for agriculture).

3. Sign a Sale & Purchase Agreement

• A deposit of 10-20% is required.
• Ensure the agreement includes lease duration, payment terms, and extensions.

4. Final Payment & Legal Registration

• Full payment must be made before ownership transfer.
• The lease agreement or ownership structure is registered with the Indonesian National Land Agency (BPN).

Costs of Buying Property in Bali

Foreign buyers should budget for additional costs beyond the property price, including:

• Legal Fees: 1-2% of property price.
• Notary Fees: $2,000 – $5,000 USD.
• Transfer Tax: 5% (only for Hak Pakai).
• Agent Fees: 3-5% of the property value.

Mortgage Availability for Foreigners

Foreigners cannot get local bank loans in Indonesia. Most purchases are cash transactions.

Key Considerations for Foreign Buyers

Legal Restrictions

• Foreigners cannot own freehold land (Hak Milik).
• Land zoning restrictions may limit residential use.
• Lease agreements must be registered with BPN for security.

Best Areas for Real Estate Investment

1. Canggu – High rental demand, popular among expats.
2. Seminyak – Luxury real estate, tourist hotspot.
3. Ubud – Ideal for nature and wellness retreats.
4. Sanur – Family-friendly, quieter area.
5. Nusa Dua – High-end resorts and beachfront properties.

Frequently Asked Questions (FAQ)

1. Can foreigners own land in Bali?

No, but they can lease land for 30-80 years or buy property through a PMA company.

2. Can I rent out my villa in Bali?

Yes, but you need a proper business license if operating as a vacation rental.

3. Can foreigners apply for a mortgage in Indonesia?

No, foreigners must pay in cash as local banks do not offer mortgages.

4. Does buying property in Bali grant residency?

No, property ownership does not provide a visa. Foreigners must apply for retirement, business, or investment visas separately.

Conclusion

Bali’s real estate market offers great investment opportunities for foreigners, but legal ownership restrictions require alternative solutions like leasehold agreements or PT PMA companies. Hiring a lawyer and conducting due diligence is essential to secure a safe investment.

Use our database to find visa facilitators, real estate agents, and recommended professionals. You will also have the ability to book a time to meet with our expats on the ground. These are individuals just like you who have gone through the immigration process and have been living in your desired country or city.

During these sessions, you can discuss every small detail related to the moving process. It’s like having a trusted friend everywhere you go. Whether you want to plan a short trip, need help finding an apartment, or you want some advice on moving to a particular city, they can help. This is a great way to meet someone with a similar background to help you achieve any of your goals.