The Investment Process:

Step-by-Step

Types of Property Ownership in Bali

Investing in Bali’s real estate as a foreigner comes with specific legalities that need to be navigated. Understanding the different property ownership options is crucial:

1. Leasehold Ownership: This is one of the most common ways foreigners can invest in property. A leasehold contract grants the right to use the property for a specific period, typically between 20-30 years, with options for extension. Leasehold agreements are popular due to their flexibility and relatively lower upfront cost compared to freehold properties.

2. Freehold Ownership: While Indonesian law restricts foreigners from owning freehold property directly, they can do so indirectly through a legal entity known as a PT PMA (foreign investment company). Freehold properties are ideal for long-term investments, offering stability and control over the property for up to 90 years through a structured legal setup.

Investing in Bali’s real estate requires careful planning and understanding of the local processes. 

Below is a breakdown of the essential steps to help you navigate the investment journey smoothly:

1. Identify the Right Property: Bali offers a wide range of real estate options, from beachfront villas to jungle retreats. The type of property you choose will depend on your investment goals, whether it's short-term rentals through platforms like Airbnb or long-term leasing to expatriates and retirees.‍

2. Negotiate and Lock the Deal: After the legal checks are in place, you’ll enter the negotiation phase. Once an agreement is reached, a refundable deposit is typically made to secure the deal. A Memorandum of Understanding (MoU) will be drafted, outlining the terms of the purchase.‍

3. Due Diligence and Legal Checks: Once you’ve found a property, performing thorough due diligence is essential. This involves verifying the property’s legal status, ensuring that it complies with zoning regulations, and confirming ownership details. Engaging a notary and working with a trusted local real estate agency will help mitigate risks.‍

4. Finalizing Contracts and Payments: Upon successful due diligence, a formal contract is drawn up, followed by the payment process according to an agreed schedule. The entire acquisition process can take anywhere between 10 to 30 days, depending on various factors such as property type and legal complexities.

3 Key Reasons to Invest in Bali

Top Tourist Destination

Bali attracts millions of visitors yearly with its beautiful
landscapes and rich culture, driving strong demand
for hospitality and tourism-related investments.

Rising Property Values

Property values in Bali offer great potential for capital
appreciation in real estate investments, especially in
popular areas like Canggu, Jimbaran and Ubud.

Stable Regulations

Bali benefits from stable regulations, particularly in
real estate and tourism, which makes long-term
investments more secure and predictable.