Can foreigners buy freehold property in Bali?

A foreigner cannot hold freehold (Hak Milik) title in their own personal name in Bali. That is the starting point. But two well-established routes give foreign buyers a legal interest in property, and both are used every day across Bali.

Leasehold in your own name

The simplest route is leasehold (Hak Sewa). You hold the right to use a property for a fixed term, commonly 25 to 30 years, often with an extension agreed up front. A foreigner can sign a leasehold agreement directly, without a company. This is why most holiday villas and many investment purchases are structured this way. The main points to check are the remaining term, the extension terms, and who holds the underlying freehold title.

Freehold through a PT PMA

To gain the benefit of freehold, a foreign buyer sets up a PT PMA, an Indonesian foreign-investment company. The company can hold Hak Guna Bangunan (Right to Build) or Hak Pakai (Right to Use) title, and you own the company. This route suits development land, business use, and longer holding periods. It carries more setup, cost, and annual reporting than a lease, so it is worth weighing against your plans before you commit.

What to avoid

You may hear about “nominee” arrangements, where a local person holds Hak Milik title on a foreigner’s behalf under a side agreement. This is not a legal form of ownership and the underlying title still sits with the nominee. Stick to the two routes above, verify the certificate before any money moves, and work through a notary (PPAT).

Whichever route fits, the groundwork is the same: confirm the certificate and its class, check the zoning matches your intended use, and complete due diligence first.

This is general information, not legal or tax advice. Take professional advice on your own situation.

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