How can I legally buy property in Bali in 2025?

With its breathtaking scenery, tropical climate and dynamic tourism, Bali continues to attract thousands of foreign property investors every year. But one question always comes up: "Can I buy property in Bali as a foreigner?" The short answer: yes, but there are some rules. Here's a clear, professional and up-to-date overview of the legal options available to you in 2025.

What Indonesian law says

Indonesia does not allow foreigners to own property outright (i.e. to hold a Hak Milik title). This form of ownership is strictly reserved for Indonesian citizens. But rest assured: Indonesian law offers several viable, legal and secure alternatives for foreign investors, provided you structure your project properly.

Option 1: Leasehold (long-term lease)

What is it?

Leasehold is long term lease, allowing you to rent land or real estate for a period generally ranging from 25 to 80 years. You have exclusive use of the property for the duration of the lease.

Advantages :

Fast, simple and flexible solution
A secure investment with a sound legal framework
You can build on the land, and use the property as you wish.
This property can be rented out on a short-term basis through an authorized company.

Points of attention :

At the end of the lease, the property reverts to the Indonesian owner, unless renewal is negotiated at the end of the lease.
Contracts are in Bahasa Indonesian and must be drawn up with an Indonesian notary. It is therefore advisable to be accompanied by someone who speaks the local language.
It is important to check the original title deeds (Hak Milik) and authorizations.

For which type of investors?

Medium-term investors wishing to rent out or operate a villa, with no intention of passing on a long-term estate.
People planning to resell within a few years.
People making a small investment (1 or 2 villas).
Investors who simply don’t want to go through the more complex PT PMA structure.

Option 2: Create a foreign-owned company (PT PMA)

What is a PT PMA?

The PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a limited liability company owned by at least two foreign shareholders. It is the only way for a foreigner to legally own a freehold property through his or her company.

Advantages :

Access to Hak Guna Bangunan (HGB) title to land and buildings
Possibility of buying, building, renting or operating a property in your own name via your own company
Qualifies for investor visa (KITAS) under certain conditions

What you need to know :

Longer administrative process
High capital requirements: minimum share capital of IDR 10 billion (approx. €600,000).
You’ll need to set up a real business as a company, with accounts and a local address.
A minimum of 2 shareholders is required, and it is particularly recommended to join forces with a trustworthy person, not a nominee.
You’ll also need to obtain a tax number and register with the Ministry of Manpower.

For which type of investors?

Experienced investors with high levels of capital and a long-term vision, looking to set up a business or operate several properties in Bali.
People already in Bali or wishing to move to Bali, as at least 1 shareholder must live in Indonesia.

Risky practices to avoid

Purchase through an Indonesian nominee agreement :

Illegal and risky. Legally, the property does not belong to you, but to your nominee. No legal protection in case of dispute.

Acquisition of agricultural land without conversion of status :

Non-conforming if the objective is to build a villa. Requires change of zoning.

Attractive offers with returns of 18 – 20% on rental villas:

Be cautious with overly tempting offers: returns advertised above 15% are often gross returns, from which you have to deduct a number of costs. Always work with professionals who can give you a realistic understanding of the Balinese real estate market.

Our advice from the field

As a professional agency based in Bali, we always recommend :

Check with your agent that a full due diligence has been or will be carried out on the property you wish to buy.
Work with a trusted local notary and, if necessary, a lawyer
Plan a budget for ancillary costs, which should always be detailed by your agent during the purchasing process.
Check the compatibility of the chosen property with your investment objective (rental, second home, resale…).

Would you like to invest legally in Bali?

Since 2014, our team has been assisting foreign investors with their real estate projects in Bali: property selection, on-site visits, legal and administrative support, rental management, resale…

Contact us for a personal consultation with Stefan, our expert Bali advisor, or for a villa tour during your stay in Bali.