Can Foreigners Buy Property in Bali? Ownership Explained

Yes, foreigners can control property in Bali, but not always in the way they expect. Indonesian law reserves full freehold ownership (Hak Milik) for Indonesian citizens, so international buyers use other, well-established structures. Understanding them is the first step to a safe purchase.

The most common route is leasehold (Hak Sewa): you lease the land and villa for a fixed term, often 25 to 30 years, with renewal terms negotiated at the outset. It is straightforward, does not require a company, and is the dominant model for villas in areas like Canggu, Pererenan and Uluwatu.

Foreigners who hold a residency permit (KITAS or KITAP) can also use Hak Pakai, a right-to-use title over land, for a home to live in. For investment and commercial activity, many buyers set up a PT PMA, a foreign-owned Indonesian company, which can hold Hak Guna Bangunan (the right to build and use) and operate rentals legally.

Each structure has different implications for cost, duration, resale and taxation. There is no single best option: it depends on whether you want a home, a rental business, or a long-horizon asset, and on your residency situation.

This article is general information, not legal advice. Any purchase should be confirmed with a licensed notary (notaris/PPAT) and an independent legal advisor in Indonesia.