In the picturesque land of Bali, where azure waters meet lush green landscapes, many foreigners dream of owning a slice of paradise. The good news is that in 2023, it is indeed possible for foreigners to buy property in Bali. However, as with any real estate venture abroad, there are certain restrictions and guidelines that must be followed.
In this comprehensive guide, we’ll explore the intricacies of property ownership for foreigners in Bali, including the process, legal requirements, and areas to be aware of.
Can Foreigners Buy Property in Bali?
Yes, foreigners can buy property in Bali in 2023, but there are some restrictions.
Foreigners cannot own land in Indonesia outright. Instead, they can only acquire property through a foreign-owned company known as PT PMA. This company must be registered with the Indonesian Investment Coordinating Board (BKPM). The PT PMA can then obtain one of two titles for the property:
- Right to Build (Hak Guna Bangunan/HGB): This title allows the foreign owner to construct buildings on leased land, with leases extending up to a substantial 80 years.
- Right to Use (Hak Pakai): The HP title permits foreign owners to utilize properties already built on land with a tenure of 25 years, which is renewable for up to 70 years.
Best Area for Property Investment in Bali
Here are some of the best areas for property investment in Bali:
Canggu is a popular beach town located in the southwest of Bali. It is known for its laid-back atmosphere, trendy restaurants and cafes, and surf spots. Property prices in Canggu have been rising steadily in recent years, and it is considered to be a good investment for the future.
Seminyak is another popular beach town located in the southwest of Bali. It is known for its high-end boutiques, luxury hotels, and nightlife. Property prices in Seminyak are also relatively high, but the area is considered to be a safe and secure investment.
Ubud is located in the central highlands of Bali. It is known for its lush rice terraces, traditional villages, and spiritual atmosphere. Property prices in Ubud are more affordable than in Canggu or Seminyak, and the area is considered to be a good investment for those who are looking for a more relaxed lifestyle.
Jimbaran is located on the southern coast of Bali. It is known for its seafood restaurants and beautiful beaches. Property prices in Jimbaran are still relatively affordable, and the area is considered to be a good investment for those who are looking to rent out their property to tourists.
Nusa Dua can be found on the southeastern coast of Bali and is known as a resort area. It is known for its luxury hotels and golf courses. Property prices in Nusa Dua are the highest in Bali, but the area is considered to be a safe and secure investment.
Restricted Areas for Property Investment in Bali
While Bali offers an array of captivating locales for property investment, it’s crucial to be aware of certain areas that are off-limits to foreigners due to military and strategic purposes. These restricted zones include:
Encompassing the islands of Nusa Penida, Nusa Lembongan, and Nusa Ceningan, this area is strategically positioned near the Lombok Strait. Nusa Penida is strategically positioned near vital waterways, making them significant for national security.
The Gili Islands
Comprising Gili Trawangan, Gili Meno, and Gili Air, these islands are also situated near the Lombok Strait and are popular tourist destinations. Like Nusa Penida, the Gili Islands are also strategically positioned near vital waterways, making them significant for national security.
Besakih Temple Complex
This sacred Hindu temple complex is considered a national heritage site and is off-limits for property ownership.
Ngurah Rai International Airport Area
Given its significance as the main airport in Bali, this area is considered a strategic asset for the Indonesian government.
Canggu Military Base
As a military installation, the Canggu base is reserved for the Indonesian military.
Singaraja Military Base
Similar to Canggu, the Singaraja military base is also exclusively used by the Indonesian military.
It’s important to note that these are just a few examples of restricted areas in Bali. There may be other undisclosed zones, so consulting with a legal expert or a property agent well-versed in Indonesian property laws is advised.
Also read: Can Foreigners Buy Property in Indonesia?
Obtaining an Indonesian Tax Identification Number (NPWP)
Before diving into the property market, foreigners must acquire a valid Indonesian Tax Identification Number (NPWP). This number is essential for tax purposes and is a prerequisite for property ownership.
Local Government Registration
Property must be registered with the local government. Compliance with local regulations ensures that your property ownership is legally recognized.
Be prepared to shoulder financial responsibilities such as property taxes and other fees, which are standard in any real estate transaction.
If you plan to construct on the property, you may need to obtain a building permit from the local government. This is a crucial step to ensure that your construction complies with regulations.
How to Buy Property in Bali for Foreigners
The process of buying property in Bali involves several steps:
Consult with a lawyer or property agent
Seek professional advice from experts well-versed in Indonesian property laws and regulations.
Obtain a valid Indonesian Tax Identification Number (NPWP)
As mentioned earlier, securing an NPWP is a prerequisite for property ownership.
Set up a foreign-owned company (PT PMA)
Registering a PT PMA is essential for acquiring property in Bali as a foreigner. You can rely to us for For a simple and hassle-free PMA registration in Indonesia.
Find a property
Conduct thorough research and enlist the help of a property agent to identify suitable properties.
Make an offer
Once you’ve found your ideal property, negotiate and make an offer to the seller.
Sign the sales contract
Engage a legal expert to draft and review the sales contract to protect your interests.
Pay the down payment
After signing the contract, pay the required down payment to secure the property.
Close the sale
Complete the transaction by finalizing the payment and transferring the property title to your foreign-owned company.
In conclusion, while the dream of owning property in Bali as a foreigner is achievable, it comes with specific guidelines and legalities that must be meticulously followed. Respect the restrictions in place, seek expert guidance, and ensure compliance with all regulations to make your Balinese real estate investment a reality.
If you have further questions, don’t hesitate to chat with us!