Get Adobe Flash player

How Foreigners Can Own Property in Bali?

How Foreigners Can Own Property in Bali?

Like most of South East Asia, foreigners are not permitted to have outright title to property here in Bali. However, foreign individuals can legally acquire property in Indonesia and enjoy full beneficial rights. Investment Bali always recommends to clients that they should secure the best legal advice when securing property in Bali. Below is some information regarding purchasing property in Bali, or Indonesia in general.
There are a number of different types of title in Indonesia, that is:
1. Hak Milik (Freehold) is the type of title that can only be held by an Indonesian citizen.
2. Hak Pakai (essentially leasehold title) and other forms of title can be held by a PT or PMA Company (Foreign Investment Company).
A non Indonesian citizen can’t own land in Indonesia. However a foreigner can acquire a leasehold title to a building, almost the same as a strata title except that the title lasts only for 25 years with an extension of 30 years for a maximum of 55 years and then reverts to the original owner.
There are two ways for foreigners to own the land in Indonesia that is using The Nominee and PMA.
The Nominee will sign four documents with the foreigner as follow:
a. A Loan Agreement, acknowledges that the foreigner has lent to the Nominee the purchase price of the land.
b. A Right of Use Agreement, allows the foreigner to use the land.
c. A Statement Letter, where the Nominee acknowledges the foreigners loan and intention to own the land.
d. Power of Attorney, the Nominee signs an irrevocable Power of Attorney giving the foreigner the complete authorities sell, mortgage, lease or otherwise deal in the land.
The most significant change in Indonesian investment law came in 1997 when the government introduced the PMA (Penanaman Modal Asing or Foreign Investment Company). This allows foreign investors to set up a company in Indonesia, without having to have Indonesian partners. The PMA can be 100% owned by the foreign investor. PMA companies are allowed to own the title of the property for a period 25 years and have to be renewed by the government.
For more information please contact us in

Bali property is still much cheaper than many other places

Leave a Reply

Bali Time
Bali Weather Live
Currency exchange
English flagItalian flagKorean flagChinese (Simplified) flagChinese (Traditional) flagPortuguese flagGerman flag
French flagSpanish flagJapanese flagArabic flagRussian flagGreek flagDutch flag
Bulgarian flagCzech flagCroatian flagDanish flagFinnish flagHindi flagPolish flag
Romanian flagSwedish flagNorwegian flagCatalan flagFilipino flagHebrew flagIndonesian flag
Latvian flagLithuanian flagSerbian flagSlovak flagSlovenian flagUkrainian flagVietnamese flag
Albanian flagEstonian flagGalician flagMaltese flagThai flagTurkish flagHungarian flag
Belarus flagIrish flagIcelandic flagMacedonian flagMalay flagPersian flag