Bali is a beautiful island in Indonesia known for its stunning beaches, lush green fields, and rich culture. It’s also become a popular place for people from other countries to invest in property. But buying property in Bali can be complicated for foreigners because of the rules and permits you need to follow.
This guide is here to help you understand the process better, so you can make smart choices and protect your investment in this amazing place.
Also read: Can Foreigners Buy Property in Bali? (2024 Complete Guide)
Permits for Buying Property in Bali
Understanding foreign property ownership in Bali entails dealing with three crucial permits:
Right to Build (Hak Guna Bangunan/HGB)
This permit allows for the construction of buildings on leased land, with lease durations extending up to 80 years.
Right to Use (Hak Pakai/HP)
The Right to Use title permits the utilization of already built properties on land with a tenure of 25 years, renewable for up to 70 years.
HP (Hak Pakai) can be granted to foreign citizens by local residents or the local government. Foreign company owners, PT PMA, or holders of residence permits (KITAS or KITAP) may apply.
Right to Own (Hak Milik/HM)
Full, unrestricted land ownership is limited to Indonesian citizens and legal entities.
Also read: Recent Updates on Property Acquisition in Indonesia for Foreigners
PT PMA: Optimal Option for Property Acquisition in Bali
PT PMA, an abbreviation for Perseroan Terbatas Penanaman Modal Asing, means Foreign Investment Limited Liability Company in Indonesian. It serves as a legal framework enabling foreign investors to engage in commercial activities within Indonesia.
As mentioned earlier, foreigners can own land or property without needing to establish a PT PMA if they possess a valid residence permit (KITAS or KITAP). However, the distinctions between the two are significant.
Essentially, permanent residents in Bali can acquire property or land solely for residential purposes. The minimum value for residential homes in Bali is Rp 3 billion (USD 225,000) and Rp 2 billion (USD 150,000) for apartments.
However, if a foreigner intends to purchase property for investment or business purposes, establishing a PT PMA is necessary. Therefore, it’s advisable to set up a foreign-owned company in Bali before proceeding with your property purchase.
Also read: The 9 Best Area for Property Investment in Bali
Benefits of Establishing a PMA Company in Bali for Property Acquisition
Through the formation of a foreign-owned company (PT PMA), foreigners can obtain HGB or HP. This route not only ensures security but has gained popularity due to its advantages:
Extended Ownership
HGB provides a tenure of up to 80 years, facilitating long-term investment and development.
Renewable Rights
HP can be renewed for an additional 70 years, offering the potential for multi-generational ownership.
Transferability and Leasing
These permits can be transferred or leased to others, providing flexibility for future arrangements.
Indonesian Buyer Accessibility
HP permits can be sold to Indonesian nationals, expanding exit options.
Also read: PT PMA vs Non-PT PMA: Buying Property in Bali Compared
Set Up Your PT PMA in Bali with InvestinAsia
Also read: Bali Property Market: 2024 Outlook and Insights
Establishing a PT PMA in Bali entails numerous requirements and processes. To simplify the PMA registration and accelerate the property acquisition process in Bali, you can rely on InvestinAsia’s service. We offer PMA Incorporation for Foreign Property Acquisition.
Our team of professionals will guide you through the entire process, ensuring that no requirement is overlooked and that the registration proceeds seamlessly.
Additionally, we have trustworthy property agents ready to help you discover your ideal properties in Bali. Whether you’re seeking a luxurious villa with ocean views or a charming beachside retreat, our team is dedicated to guiding you through the process of acquiring your dream property in Bali.
Don’t hesitate any longer! Reach out to our team now for a FREE consultation and take advantage of our exclusive offer!
