Ultimate Guide to Buying Property In BALI

For Indonesian Citizens

As a WNI (Warga Negara Indonesia), you have full property ownership rights. Here’s what you need to know:

Types of Land Titles Available:

1. Hak Milik (Freehold) – Full ownership, best and most complete title.
2. Hak Guna Bangunan (HGB) – Right to build on land for 30 years, extendable.
3. Hak Pakai (Right to Use) – Use land for residential or business purposes; often used by foreigners.

Requirements:

• Valid Indonesian ID (KTP)
• Tax Number (NPWP)
• Sufficient funds or mortgage approval if using financing
• Legal assistance or notary (PPAT) for land certificate check and transaction

Tips:

• Always do a land certificate check (for disputes, zoning, etc.)
• Use a notary (PPAT) to verify the seller is legitimate
• Avoid “overlapping” land plots—double sales happen
• Check IMB (Building Permit) for existing structures

For Foreigners (WNA – Warga Negara Asing)

Foreigners cannot own land under Hak Milik, but there are legal options to acquire property use rights.

Legal Ownership Options:

1. Hak Pakai (Right to Use)
   • Can be granted to foreigners with KITAS/KITAP
   • 30 years + extendable
   • Must be on land zoned for residential use
   • You must live in or use the property yourself (not just for investment)
2. Leasehold (Sewa)
   • Lease land from an Indonesian owner (typically 25–30 years, renewable)
   • Common and safe if done with a notary and clear contract
   • No KITAS required
3. PT PMA (Foreign-Owned Company)
   • Foreigners can set up a PMA to own Hak Guna Bangunan (HGB)
   • Ideal for commercial projects (villa rentals, resorts, etc.)
   • Requires legal setup and annual reporting

Documents Needed:

• Passport
• KITAS/KITAP (if using Hak Pakai)
• Business documents (for PMA route)
• Agreement prepared by a trusted notary (PPAT)

Tips:

• NEVER use a nominee (Indonesian name on title) – it’s illegal and risky
• Always do due diligence on land ownership
• Work with a reputable notary/lawyer familiar with foreign property deals
• Avoid “verbal” lease deals—get everything in writing
• Consider using an experienced property agent who works with foreigners

Extra Tips for Both Foreigners & Citizens

• Always check zoning (zoning = “peruntukan tanah”) before buying—some land is not for residential use
• Make sure PBB (property tax) is up to date
• Consider the BPN (National Land Office) registration process for legitimacy
• Include exit clauses in contracts (especially for leasehold)
• For building, ensure you have an IMB or the new PBG (Building Approval)

Tax Considerations

Common Mistakes to Avoid

• Buying unregistered land (no certificate)
• Trusting verbal promises or handshake deals
• Skipping legal checks or PPAT
• Buying agricultural land in your name (if foreigner)
• Using a nominee agreement (risky and can be voided)

Conclusion

Buying property in Bali can be a dream come true—but only if done legally and smartly. Whether you’re an Indonesian citizen or a foreigner, the key is proper due diligence, legal guidance, and choosing the right ownership structure for your needs.