How to Buy Property in Bali as a Foreigner: 2026 Guide
Updated November 2026
Foreigners cannot own freehold land in Indonesia, but they can legally secure long-term rights to a villa in Bali. Most foreign buyers do it through a leasehold. A Hak Pakai right or a PT PMA company are the other two routes. What protects you is not the label but the documents behind it. This guide explains each option, what to check before you pay and how a purchase works step by step.
The short answer
- Freehold (Hak Milik) is reserved for Indonesian citizens.
- Leasehold is the most common route for foreign buyers of resort villas: a notarised long-term lease of the land and the building.
- Hak Pakai lets a foreign individual register a home in their own name, above a minimum price set by the state.
- A PT PMA company can hold a building right (HGB), but it is an operating business with real obligations, not a shortcut.
- Nominee arrangements (land held in an Indonesian friend's name) are illegal and can be declared void.
Four legal routes compared
| Route | Who can use it | What you get | Best for |
|---|---|---|---|
| Hak Milik (freehold) | Indonesian citizens only | Full ownership of land, no time limit | Not available to foreigners |
| Hak Pakai (right of use) | Foreign individuals with a passport and visa | A registered right to use a home, granted for up to 30 years, extendable and renewable | One home to live in; a minimum purchase price applies |
| HGB through a PT PMA | An Indonesian company with foreign shareholders | A registered building right held by your company | Running a property business; needs significant capital and ongoing reporting |
| Leasehold (Hak Sewa) | Anyone | A contractual right to use the land and building for an agreed term | Resort and investment villas; the most common choice for foreign buyers |
How a leasehold works
A leasehold is a long-term lease signed before an Indonesian notary. It is a contract, not a title registered at the land office (BPN). That is why the wording of the contract and the quality of the documents behind it matter so much.
In a resort project the chain usually looks like this: the landowner leases the land to the developer (the head lease), and the developer grants you a sublease or assigns a lease on your unit. Your term cannot be longer than the developer's own head lease.
Check five things in the contract:
- Term and start date. Does your term start from your signing or from the developer's head lease?
- Extension. An extension is a right only if it is written into a binding agreement with the landowner: for how long, at what price or formula, on what conditions. A promise in a brochure is not a right.
- Transfer and resale. Can you sell or assign the lease, and is the landowner's consent needed?
- Inheritance. What happens to the lease if something happens to you.
- End of term. Who keeps the building when the lease ends.
Why nominee arrangements are a no-go
Some buyers are still offered land registered in an Indonesian citizen's name, backed by side agreements. Indonesian law treats a hidden transfer of freehold to a foreigner as void: you can lose both the money and the property. Since 2026, Bali's provincial regulation also explicitly bans facilitating nominee schemes. A properly structured leasehold needs no nominee at all.
Documents to check before you pay
- The landowner's certificate (SHM): whose land it is, its exact location and that it carries no mortgages or disputes. Your notary can check it with the land office.
- The head lease between the landowner and the developer: its term, the right to sublease and any extension terms.
- Your agreement: term, extension mechanism, transfer, inheritance, end-of-term terms and the payment schedule.
- Zoning: the plot must allow tourist accommodation. In Bali this is often called the "pink zone".
- Building approval (PBG): its number, date, the function of the building and which buildings it covers.
- Certificate of occupancy (SLF): required before a finished building can be used.
- Accommodation licence: needed to rent the villa to guests, and you should know who holds it.
- The developer's company details: which company signs, which company receives your payments.
Use your own independent lawyer or notary, one who works for you and not for the seller.
Step by step
- Define the goal. Living, renting out or both: this decides the right route.
- Shortlist and reserve. Read the reservation terms, including when the deposit is refundable.
- Due diligence. Your lawyer checks the land, the head lease, permits and the developer.
- Agreement. Review the draft, negotiate, sign before a notary.
- Payments. Prefer a schedule tied to construction milestones.
- Construction and handover. Ask for regular progress reports; at completion, sign the handover act and check the SLF.
- Operation. If you plan to rent the villa out, sign a management agreement that sets out fees, reporting and owner stays.
Costs and taxes
Budget for notary and legal fees, VAT on newly built property and taxes on any rental income. The amounts depend on the route you choose and on your tax residency. Get advice from a tax adviser in Indonesia and in your home country before you sign. See also what it costs to own a villa in Bali.
How it works at OceaniQ
OceaniQ residences in Nusa Dua and Nusa Penida are offered on long-term leasehold. Our projects are built in a tourism zone and have a building permit (PBG). The lease term, extension terms and rental management terms are set out in your agreement. Before you commit, we share the draft agreement and permits so your own lawyer can review them.
FAQ
Can a foreigner buy a villa in Bali?
Yes, through a leasehold, a Hak Pakai right or a PT PMA company. Freehold ownership is not available to foreigners.
Is leasehold in Bali safe?
A leasehold is a contractual right. Its strength depends on the landowner's title, the head lease and the wording of your agreement, so have them checked by an independent lawyer.
Can a leasehold be extended?
Only if the extension is written into a binding agreement with the landowner, with the term, price or formula and conditions.
Can I rent out my villa?
Yes, if the zoning allows tourist accommodation and the property has an accommodation licence. Most owners rent through a management company.
Do I need to live in Indonesia to buy?
No. A leasehold does not require residency, and since 2022 a Hak Pakai can be obtained with a passport and visa.
This article is general information, not legal or tax advice. Rules change; confirm your situation with a licensed Indonesian notary or lawyer.