fbpx
🎉 FREE WEBINAR - July 24th, 11am / 8pm CET - Learn Airbtics in 7 Minutes - Revenue and Market Analysis Tips and Best Practices!

This article will explain the steps and legal requirements for buying a villa in Bali, including what foreign buyers need to know before making an investment.

investing in Bali real estate

This article will explain the steps and legal requirements for buying a villa in Bali as a foreign investor.

Can You Buy a Villa in Bali? A Step-by-Step Guide by Foreigners

Due to the stunning beaches and rich cultural heritage, Bali has always shown a constant increase in tourism growth. This growth has made Bali not just a top traveler’s destination, but also a prime real estate investment destination. This also attracts foreign investors to the real estate market in Bali. The question is: Can you buy a villa in Bali? This article will elaborate on the steps and legalities of purchasing a villa in Bali. 

Legal Framework for Foreign Ownership in Bali

Regulations regarding real estate ownership in Indonesia are constructed to ensure a balance of ownership legalities between locals and international investors. Moreover, foreigners in Bali can’t directly own the land under their name. In addition to this rule, there are other options worth considering for investors looking to invest in Bali.

Ownership title: Freehold and Leasehold

– Freehold Ownership in Bali is only restricted to Indonesian citizens. This ownership title gives infinite rights to own and use the land. Foreign investors are not eligible for this option.

– Leasehold Ownership means that you can own and use the land or property for a certain period of time. This ownership title typically lasts for 25-30 years with the option to extend the lease period up until 80 years of time. This gives enough time for foreign investors to make the best out of their investments. 

Although foreign investors cannot directly own a property according to the law, they can lease the property with several options:

  1. By utilizing a local nominee arrangement, in which the title is held on their behalf by an Indonesian national.
  2. To lawfully purchase real estate, establish a foreign-owned business (PT PMA. This option has its pros and cons and must be researched thoroughly. work with a local expert or real estate agency to navigate this option better. 

Step-by-Step Guide to Buying a Villa in Bali

 Step 1: Research and Understand Ownership Options

As explained before, foreign investors cannot directly own a property in Bali due to the ownership regulations. Therefore, foreign investors must explore the leasehold options and what needs to be established to lease land in bali. During this process, it is advisable to work with a reputable real estate agency. Local real estate agency has deep knowledge of this option and often will help you adjust your needs to what’s available in the booming real estate market.

 Step 2: Define Your Budget

Villa prices in Bali have varied depending on the location, size, and amenities. Other factors may influence the price, hence the importance of setting your initial budget with the type of villa you are looking for before starting to explore the myriad of selections in Bali’s villa market.

Villa prices start from as affordable as USD 100,000 to up until USD 1,000,000. 

Alongside the purchase price, investors need to be aware of the following costs that might apply. Taxes and notary fees are inevitable inclusions in these additional costs. By understanding these and setting your budget early on, you can start exploring with a much more ready preparation.

 Step 3: Hire a Trusted Real Estate Agent

Purchasing a villa in Bali might be challenging, this is where you need the guidance of a local real estate agency. Reputable real estate agents will have a wide range of selections for you to choose from. Make sure you choose the right real estate agency with a proven track record in the real estate market. An agency like Balitecture Realty has extensive listings and highly experienced experts who could leverage your real investment journey. 

 Step 4: Choose the Right Location

Bali offers a wide variety of popular locations, each location has its unique appeal. Areas like Seminyak have been tourist hotspots for the past decades, the area is popular for its upscale living and vibrant lifestyle.

Canggu has emerged as a popular are due to its breathtaking beaches and amazing surf spots. This area is also complemented by the trendiest beach clubs. Canggu is a combination of laid-back living and also a popular spot for younger tourists due to its nightlife.

Ubud is the area you want to aim for if you’re looking for a quieter area with a rich cultural heritage atmosphere.  Wellness retreats are popular in Ubud, art galleries are also can be found almost in every corner. Tourists who seek a unique and cultural holiday experience often opt to visit Ubud rather than the popular and most likely crowded area.

 Step 5: Secure a Lease or Ownership Structure

When you find the right property, you’ll need to finalize the ownership agreement. Work with a local notary and lawyer to draft the contract. It’s important to check and ensure the agreement so it does not overlap and prevent any potential problems from occurring.

Step 6: Finalizing the Purchase

Completing the final process is the final step that involves signing the contract and finishing up the payment. Things you need to do in this process:

  1. Review and sign all documents
  2. Pay the required taxes and fees
  3. Obtain the necessary permits to finalise the purchase

Once these processes are followed, you can start your villa investment right away.

Conclusion:

The answer to the question can you buy a villa in bali has been thoroughly answered. Foreigners can’t directly own the land in Bali, however, there are other options of ownership to choose from. By understanding the ownership title and other factors, buying a villa in Bali can be a rewarding and profitable investment option. Always seek advice from experienced real estate agents and legal professionals to ensure your investment. 

Get Accurate Airbnb Data with Airbtics!

Unlock Worldwide
Short-Term Rental Data
Find unsaturated neighborhoods with the highest occupancy history.

Unlock Worldwide
Short-Term Rental Data
Find unsaturated neighborhoods with the highest occupancy history.

  • Quick Links

Shares

Free Webinar

Learn Airbtics in 7 Minutes

Revenue and market analysis Tips and Best Practices!
Airbnb Data
Airbnb Data

ARE YOU IN?

Get Access to our weekly data-driven airbnb report!