Buying Property in Bali: The Ultimate Guide

Posted on

Suggestion: Watch the 5 minutes video tutorial before reading this article

Bali is one of the most popular resort destinations in the world and is famous for its unique culture and beaches. People from all over the world decide to invest in real estate, or even settle here full-time.

Saying that the Bali property market has performed well in the past decade is an understatement, something we will review later in this article.

However, Indonesia is also notorious for having some of the most unfavorable foreign property ownership regulations in Asia. Before you invest in Bali real estate, you must get your feet wet, learn about local regulations, and work with credible partners.

In this article, we cover the basics when property in Bali.

Topics covered:

Bali’s property market

Bali receives many foreign investors which have resulted in increased property prices. The prices have increased particularly much during the past 10-15 years.

To many people’s surprise, Bali’s property market has been one of the best performers in Asia.

The following facts back up this statement:

  • Luxury property prices increased 15% yearly
  • Prices for vacant land increased at one of the fastest rates in the world

As a result, prices started to stagnate. After years of a continuous uptrend, the market has finally started to cool down.

Some other outspoken reasons why the market has stagnated are:

  • Problems with the local infrastructure, like lack of clean water
  • Oversupply of property due to an unregulated market and zoning issues

Foreign Property Ownership Regulations in Bali


Bali is different compared to many other places in Indonesia, both culturally and demographically.

Foreigners visit Bali for vacation or reside there for a long period. A common question is whether regulations to foreign ownership are different compared to the national standards.

Unfortunately, regulations don’t differ much, except for the limit on the height of buildings that can be constructed, which is only a disadvantage.

Normally, a building can’t be taller than 3-4 levels (15 meters). Yet, one of the tallest buildings, Grand Bali Beach Hotel, was built in the ’60s and stretch 10 floors, as builders managed to avoid the new regulations.

Buying Property with a Freehold Title (Hak Milik)

Most foreigners want to buy property with a freehold title, even if this option is riskier.

It’s not strange, as a freehold title gives you full ownership rights, resulting in more freedom and generally higher price appreciations.

As explained in my separate guide about buying property in Indonesia, foreigners can’t own freehold property in Indonesia. This is against Indonesian property ownership laws, which are some of the strictest in Asia.

Still, there are ways for foreigners to buy and indirectly control freehold property. Owning the property through local contractual setups is a common practice.

This requires that you use an Indonesian corporation or individual (a so-called nominee or representative) as the owner of the title.

In a worst-case scenario, your nominee can get full rights to the property.

The pros of buying a freehold property, on the other hand, are that you often experience a higher price appreciation as these are in high demand and remain attractive.

A leasehold property will lose its attractiveness the closer you get to the expiry date of the lease.

Buying Property with a Leasehold Title (Hak Sewa)

Choosing a leasehold property is safer and less of a financial burden. But, but you will have more limitations when using the property.

You’ll also miss out on the price appreciation of the land, something that owners of freehold property can enjoy.

Buying property with a Right-to-use title (Hak Pakai)

Hak Pakai is a Right-To-Use title and can be received from a person that owns the Hak Milik. The lease term is set to 25 years and can be renewed for a maximum period of 70 years.

In order to obtain a Hak Pakai as an individual (not a company), you need to reside in Indonesia or have Indonesia as your domicile.

This brings a requirement to apply for a KITAP (permanent stay permit) or a KITAS (temporary/limited stay permit).

Thus, setting a PMA company is the preferred choice, in case you’re not an Indonesian citizen or have Indonesia as your domicile.

Hak Pakai is a strong title that allows you to sell and transfer the title to another person, who’s eligible to own the title in Indonesia.

Buying Property with a Right-To-Build title (Hak Guna Bangunan)

Hak Guna Bangunan, often abbreviated as HGB, is only available to Indonesian citizens and local companies, incorporated under Indonesian laws.

This includes PMA companies that fall under the category of foreign direct investments, FDI.

HGB’s are valid for a period of 30 years but can be extended with an additional 20 years, and later with 30 years.

Differences Between Hak Guna Bangunan and Hak Pakai

A common question is what the differences are between Hak Guna Bangunan (HGB) and Hak Pakai (HP). There are a couple of differences worth highlighting.

  • You can get a Hak Pakai title as an individual, but Hak Guna Bangunan requires that you open a PMA company
  • You can’t use the Hakai Pakai title as a mortgage, which is possible with a Hak Guna Bangunan title

It’s recommended to engage with a reputable agent and property lawyer who can guide you through the buying process and share up-to-date information.

Best setup when Buying Property in Bali


The safest option when buying property in Bali is to set up a PMA (Penanaman Model Asing) company. You can then acquire any of the following titles:

  • Hak Pakai (HP): Right-to-use title
  • Hak Guna Bangunan (HGB): Right-to-build title

I’ve excluded the Hak Milik as you need to work with an Indonesian nominee for this option. This is not recommended and it’s not rare that foreigners lose ownership of properties when letting a local person holding the title.

Even if the PMA incorporation process can take time and requires documentation like a business plan and operational activities in Indonesia, it’s the safest option.

Getting a Right-To-Use title (Hak Pakai) is possible without a PMA but requires that you have Indonesia as your domicile.

In case you decide to go for an HGB, keep in mind that you can only build your house in dedicated zones, excluding agricultural land, for example.

Using a PMA Compared to an Indonesia Nominee

Below, you’ll see some clear benefits of using a PMA company instead of a local nominee to hold your title.

  • You get full freehold ownership if using a PMA, which is not the case with a nominee structure. The latter one is not recognized under Indonesian laws
  • With a PMA, you’ll be protected by internationally recognized contracts (common-law)
  • BKPM (the Indonesian Investment Coordinating Board) will regulate, check, and audit the entity
  • You obtain a verifiable tax number (NPWP)
  • Dispute resolutions in international courts

Where should I buy property in Bali?

Choosing a location requires local knowledge and thorough research. Some areas are flooded with tourists and more expensive. At the same time, you have calmer areas with greater growth potentials.

Below, I’ve listed some of the most interesting places for real estate buyers in Bali.


Located along a 5 km long coastline in the Southeastern parts of Bali, Sanur is overlooked and more relaxed compared to other areas.

You can find many restaurants, bars and meet more locals as the streets are not as crowded with foreign tourists.

The price of a 3-bedroom freehold villa usually starts at USD 400,000 and then continues upwards. For more information, we recommend you contact a local agent.


With a coastline that is twice as long as Sanur’s, Canggu is located in the Southern parts of Bali. It’s one of the most popular places for property buyers and travelers.

Similar to Sanur, Canggu is fairly relaxed with many cafes, it’s also popular among surfers. With a beautiful landscape with rice paddies, many foreign expats decide to buy villas here.

The price of a 3-bedroom freehold villa starts at around USD 750,000, which is considerably higher than Sanur.


Ubud is one of the oldest areas in Bali and becomes increasingly popular. It’s located in the mountains, offering cooler weather and beautiful temples.

It’s famous for having a relaxed lifestyle, but also local culture in abundance with different arts.

The price of a 3-bedroom freehold villa usually starts at around USD 250,000 to USD 300,000. Ubud has some of the lowest property prices.


Kuta beach is probably the most popular area for resort travelers, especially among Australians. It’s located in the Western parts of Bali and close to Ngurah Rai international airport.

Kuta is famous for its many stores, bars, and restaurants. It’s more lively than places like Ubud and Sanur.

A 3-bedroom freehold villa still starts at a significantly lower price compared to Canggu, from USD 300,000.


Seminyak is located a bit north of Kuta and is considered one of the most expensive areas. It was previously an underdeveloped and sleepy area but has turned into one of the most upscale area in Bali.

The price of a 3-bedroom freehold villa usually starts at around USD 500,000.

Real Estate Agents in Bali

Bali is one of the most popular resort islands in the world. Many real estate agencies have made great profits from operating on the island.

Some of the most popular real estate agencies include:

  • Ray White Property Group
  • PPBali
  • Sevenstonesindonesia
  • Villabalisale

Keep in mind that real estate commissions usually land at 5%, which is comparatively high to other countries in the region.


Bali is one of the most visited resort islands in the world and attracts tons of visitors worldwide.

Foreigners can’t own freehold property, but some still decide to indirectly own freehold property through local contractual setups. You should keep in mind that you won’t be protected if you decide to go for this option.

Prices have increased much in the past 10-15 years, especially in the luxury segment and for vacant land. Due to hefty increases, the prices have stagnated.

Some of the most popular areas to buy property in Bali include Sanur, Uduk, Canggu, Kuta, and Seminyak, all offering different lifestyles.

If you want to know more about buying property in Bali, I recommend you to read the complete article.

  • Disclaimer: The content on this website is provided for general information about buying property in Asia, developments, agencies, regulations, taxes, and other related topics. However, we don't guarantee that we keep the content up to date or that it's free from error. We do make mistakes from time to time. We never provide legal advice and financial advice of any sort. is not licensed to deal with any property situated in Hong Kong. We are not an estate agent or salesperson.