Buying Property in Bali: What Foreigners Need to Know

Bali has long outgrown the postcard image from a travel brochure. For thousands of expats and investors worldwide it has become a second home and a source of steady income. A warm ocean, a distinctive culture, a mild climate, and rapidly improving infrastructure naturally make this Indonesian province one of the most attractive assets in Southeast Asia. Still, visiting the island and owning your own villa or apartment here are two very different things. Golden Bee experts explain whether a foreigner can buy property in Bali and help you navigate the legal details of purchasing a home on the island.

Can a Non-Resident Buy Property in Bali? Ownership Formats and Legal Ways to Structure a Purchase

A foreign citizen can purchase real estate on the island with one key caveat: you cannot own land directly. This is one of the core rules under Indonesian law. Agrarian Law No. 5 of 1960 clearly separates land ownership rights from rights to buildings. There are several legal ways to structure ownership and most buyers choose one of the options below.

Hak Pakai (Right of Use)

Can you buy a private house in Bali? The most popular and secure option for foreigners purchasing a villa for personal use is Hak Pakai. In practice, it is a registered certificate issued in your name that gives you the legal right to use and control the land and the home. It is granted for 30 years initially, with an extension available afterward. A home under this title can be rented out, sold or passed on to heirs.

• A foreigner may hold only one property under this title
• Maximum land plot size: 2,000 sq m (0.2 hectares)
• Minimum price for a private house: 5 billion IDR (about $297,000)

Hak Milik atas Satuan Rumah Susun (Apartment Ownership Right)

Apartments on the island have a separate title. HM SRS is the closest equivalent to owning an apartment outright in the way many buyers are used to. Here the answer to “can you buy property in Bali?” is as straightforward as it gets. You do not buy the land beneath the building, only the specific unit. The certificate is issued in your name and registered with the state land authority.

• Minimum apartment price: 2–3 billion IDR (about $120,000–180,000), depending on location
• A quota applies to non-residents: no more than 50% of units in a single residential complex

Hak Guna Bangunan (Right to Build)

Can you buy several houses or villas in Bali? Yes, but not directly as an individual. This is typically done by setting up an investment company, PT PMA (Pendaftaran Penanaman Modal Asing). It is a foreign-owned legal entity registered in Indonesia and it can hold an unlimited number of properties in the country. The company can purchase completed villas or develop new ones on land held under HGB. Through PT PMA, property can be acquired for business purposes or for personal use. However, establishing and maintaining the company comes with requirements, including share capital starting from 10 billion IDR and annual tax reporting.

The Property Purchase Process in Bali

1. Reservation. You choose a property and pay a deposit, usually $5,000 to $10,000. This secures the villa or apartment and takes it off the market while legal due diligence is carried out. The deposit is applied toward the purchase price, but if the buyer withdraws, it is typically non-refundable. 

2. Legal due diligence. Your lawyer or notary checks the land status, confirms the developer has the required construction permits and verifies there are no encumbrances. This is the stage where you learn for sure whether buying property in the chosen area can be done safely.

3. Preliminary agreement (PPJB). After a successful review, the parties sign PPJB, similar to a preliminary sale and purchase agreement. It specifies:

• the exact purchase price
• the payment schedule, if installments are involved
• the deadline for signing the main contract
• liability for a failed transaction

The agreement is drafted in Indonesian and English and notarized.

4. Payment. For Russian citizens this step requires careful planning. It is important to factor in:

• currency control procedures (the contract is needed as the basis for the transfer)
• SWIFT transfer fees, typically around 1-2% of the amount

5. Main contract (AJB). Once full payment is made, the parties sign AJB, the sale and purchase deed. The notary submits the document package to the National Land Agency, which records your rights in the official register. You receive:

• a Hak Pakai certificate if you buy a house or an HM SRS certificate if you buy an apartment issued in your name
• an extract from the register confirming you are the legal owner

Is it possible to buy a Property in Bali Without Specialists?

Can you buy a house in Bali on your own? In theory, yes. In practice, an unprepared buyer can run into plenty of traps. Indonesia is a market with its own rules. There is no shortage of beautiful villas here, but it is worth asking whether every one of them is legally clean. The conclusion is simple: professional support is not optional.

1. Vetted listings. Only specialists truly know developers’ track records and can assess whether buying a house in Bali in a specific area, from a specific seller, is a safe move.
2. Legal support. Strong lawyers review not only the basic documents, but also the history of land disputes, the seller’s legal standing and crucially, whether the property matches the permits on record.
3. Protection of your interests. Experts represent you in negotiations and make sure the deal stays transparent at every step, from the first payment to the final signatures.
    

When professionals are by your side, the question “Can foreigners buy property in Bali?” stops being a worry. You complete the purchase and move into your own home by the ocean. Golden Bee experts have been working in Bali’s real estate market for years. We handle all legal formalities so you can focus on what matters most: choosing the home you have been looking for.