Buyer Guide
Buying in Bali, without the guesswork.
Ownership, tenure, zoning, diligence, costs and process. Written plainly, grounded in how purchases actually run.
Edition
2026
Format
Guide · Insights articles
Contents
This guide is general information, not legal or tax advice. Rules change and cases differ: confirm your structure with a qualified Indonesian notary or lawyer before committing.
Ownership for foreign buyers
A foreigner cannot hold freehold (Hak Milik) in their own name. Two established routes still give foreign buyers a legal interest, and both are used every day.
Leasehold (Hak Sewa)
A fixed term, commonly 25 to 30 years, extension agreed up front. Foreigners sign directly. Most villas are held this way.
Hak Pakai (Right to Use)
A registered title for foreigners with an Indonesian residence permit. Suits a long-term personal home, not a commercial project.
PT PMA + Right to Build
A foreign-owned Indonesian company holds the title and runs the rental or hotel legally. The company owns the property; you own the company.
What to avoid
Nominee arrangements sit outside the law's protection: if tested, the registered owner keeps the land. We do not arrange them.
Leasehold vs freehold
Leasehold is cheaper to enter and faster to complete. Freehold gives longer control and no expiring clock. The right choice follows your hold period and your plans.
Choose leasehold when
A holiday base or a rental with a defined horizon, where a well-drafted extension covers your timeline.
Choose freehold when
Holding long term, building on the land, or running a business that needs a durable company-held title.
Either way, check
Remaining term and extension mechanics; title class and company obligations. The paperwork decides, not the headline.
Zoning
Zoning decides what you may build. A clean certificate at a fair price still fails if the zone does not permit your use. Check it before anything else.
Green zone
Protected land, often rice fields. Building is restricted or barred. A low price here is low for a reason.
Residential zones
Homes and villas, with local rules on footprint and height. Right for a private house or rental villa.
Tourism zones
Hotels, resorts and commercial use. Required for hospitality projects, and priced accordingly.
Due diligence
Diligence confirms the property is what the seller says, and that you can safely buy it. A notary (PPAT) leads the formal checks; we coordinate the rest.
Certificate & title
The certificate is genuine, the seller is authorised, and name, size and location match the property in front of you.
Charges & disputes
No mortgages, disputes or inheritance claims on the title, checked against land-office records.
Zoning & permits
The zone permits your use; any building holds a permit matching what is actually built.
Boundaries & access
Boundaries measured against the certificate; legal access in writing, not by custom.
Pricing & costs
Land is priced per are (100 m²; a hectare is 100 are). Beyond the headline price, budget for the costs below and confirm rates with a tax advisor.
| Item | Typically | Notes |
|---|---|---|
| Transfer tax (BPHTB) | Buyer | Charged on the transaction value at transfer. |
| Seller's income tax (PPh) | Seller | Final tax on the transfer value, usually the seller's cost. |
| Notary (PPAT) fees | Shared or buyer | Deed execution and registration; agree who pays up front. |
| VAT (PPN) | Case-dependent | Can apply to purchases from VAT-registered developers. |
| Annual land & building tax (PBB) | Owner | Ongoing yearly obligation once you hold the property. |
| Lease payments | Leaseholder | On leasehold structures, per the agreed schedule. |
Indicative only. Rates and application vary by case; confirm with an Indonesian tax advisor before budgeting.
The process, step by step
The order matters: tenure and structure, decided early, shape everything that follows.
- 01
Before you look
Decide what the property is for and how long you will hold it. Those answers choose the structure. Budget beyond the headline price.
- 02
Finding & agreeing terms
Shortlist, view, agree price, tenure and extension. Terms go in writing before money moves.
- 03
Due diligence
Certificate, owner, zoning, access and permits verified. Nothing is signed until the checks come back clean.
- 04
Signing & payment
Deed signed before the notary, payment per the agreed schedule, transfer registered at the land office.
- 05
After completion
Tax filings, utility transfers and, if letting, the licences that make the rental legal.
Still deciding?
Ask the question you're actually stuck on.
Common ones are in the Buyer FAQ. For your specific case, a short conversation saves weeks.