How to Buy a Villa in Uluwatu Bali as a Foreigner: The Complete 2025 Guide

While some parts of Bali are now overcrowded, Uluwatu has emerged as one of the top destinations for tourists in Baliwith a stunning selection of seaview villas near white sand beaches.

Buying a villa in Uluwatu Bali is a significant investment that requires a deep understanding of regulations, the property market, and of course, potential ROI. Our team of property experts has been active for years and is your trusted source for comprehensive guidance. We have a proven track record in helping clients understand the specific zoning regulations in the Uluwatu area. Supported by a network of leading local notaries, knowledge of market trends, and highly credible developers.

Uluwatu has its own community and sees development of new businesses each week. This guide explores how to buy and operate and get an income with a villa in Bali especially in Uluwatu without hassles and ensure protection of your investment.

Overview :

Buying a villa in Uluwatu is a property investment destination in Bali. The luxurious villas and stunning ocean views are a big draw. However, it is important to have a thorough understanding of the market and regulations, especially since many villas are sold off-plan and the quality of construction is only seen after many years.

It is important to work with a proven developer and conduct thorough due diligence on the land and create a strong contract to protect your investment. Buyers should also consider the option of Leasehold or Freehold ownership, as well as the method of purchase, either as an individual or through a PT PMA, for tax and legal optimization.

ILA Global Consulting has built a strong reputation over the past years by helping hundreds of international clients navigate Indonesia’s legal, tax, and investment frameworks with precision and care – including buying villas in Uluwatu as a foreigner.

Our team combines deep local knowledge with international best practices, ensuring that every solution is both compliant and strategic.

With a proven track record, clear communication, and a client-focused approach, ILA has become a trusted advisor for individuals and businesses looking to establish a strong, sustainable presence in Indonesia.

How Should You Choose A Developer and Contractor of Luxury Villas in Uluwatu?

Uluwatu offers luxury villas through different property agents, some with licences and some without. Most developers build villas with varying levels of experience in construction and development, aiming to capitalize on the development wave.

Since they sell most villas off-plan, buyers sometimes find it difficult to inspect the product in person, relying mostly on online views. Additionally, past projects are often too recent for buyers to measure construction quality, as construction issues typically emerge one to three years later.

Uluwatu promises luxury villas at an affordable price. However, this price might hide some construction costs, leading to lower quality materials that look good in the aspect but are built or assembled without respecting the standards.

At ILA, we had to handle several handover issues with delays, poor construction standards, and no building permit, which significantly affected the Return on Investment. Uluwatu is a great place to invest, but it requires taking care of the process, ensuring protection in the contract, checking on the contractor, and checking on the site.

How can a Foreigner Safely Buy a Villa in Uluwatu?

1. Has a Professional Agent or Developer Been Selected?

The first step is always to work with a proper property agent, developer with experience in Uluwatu. It is essential to look at the background of the third party. A professional agent will be able to select the project before offering it to the market.

Unfortunately, too many agents fail to check the villas on their listing and avoid communicating issues regarding the building permit, zoning, land, and building ratio. This happens because they prioritize short-term commissions due to high competition.

2. Has Leasehold Versus Freehold Been Defined?

Both leasehold and freehold can be purchased by foreigners. Obviously the freehold price is higher than the leasehold price. Freehold villas appreciate, while leasehold villas depreciate annually, making them harder to sell later. With leasehold, the landowner (often not the developer) retains ownership, unlike freehold where ownership transfers to the foreigner.

In Indonesia, the leasehold is called Hak Sewa, and it is valid for a certain period of time defined in a contract. The contract, whether in front of a notary or not, is not registered at the land office.

It is basically a rental agreement with some rights and obligations. Most of the developers in Bali use leasehold agreements and sublease their rights with the landowner to the buyer.

The freehold transaction consists of purchasing the Hak Milik from the landowner and converting the title into an HGB or Hak Pakai. Both are valid for a total of 80 years. During this period, the foreigner can resell the freehold (unlimited) to a local person, another foreigner as a freehold, or even to itself to transfer to the next generation.

3. Is the Difference Between Purchasing as an Individual or Under a PT PMA Clear?

The way to purchase a property has an important impact on the tax and will impact the ROI (return on investment). The Indonesian government has implemented in 2025 a new system called Coretax and previous method are now not recommended anymore. Most agents or developers encourage buyers to purchase property as individuals, often prioritizing the interests of the seller and the agent rather than the buyer. Unfortunately, many notaries allow these transactions to proceed, even though regulations clearly favor purchasing through a corporate structure – offering better legal protection and long-term advantages for the client. Agents sometimes force to buy individually to speed up the process, manipulate the selling price, and have double contracts. because it is easier to manipulate private contract transactions while both parties are not Indonesian residents.

This technique however is not at the advantage of the buyer and the seller for several reasons.

• Tax is higher for non-residents, and the tax on sales will be higher in the future
• A double contract can lead to issues in court and the ability to claim the real amount in case of dispute in court
• The process of setting a PT PMA takes only a few days
• You pay higher tax on revenue from rentals.

3. Have Contracts and Due Diligence Been Handled Carefully?

Those two steps are crucial and can avoid problems from occurring in the future after the handovers. Having a strong contract is crucial and using an experienced lawyer is more than recommended.

The notary is just here to ensure the contract is legal. But will not look into the details to protect the party (it is not their role). The contract needs to cover several aspects:

• Taxaction
• Building permit
• Penalties in case of delay or breach of the contract
• Payment plan
• Delays
• Handover and quality check
• Management of the property
• Extension of the lease
• Securing the property and avoid the landlord to take back the villa

A professional eye is important to avoid hassle in the future. Trusting the agent or the developer doesn’t mean you do not have to be cautious. The developer itself is not building. Developers use subcontractors which sometimes have unforseen impacts unfortunately.

Once the contract is secured, the buyer must start due diligence on the land and the developer to ensure the property has no hassle. Notary due diligence is sometimes light and we also recommend using an independent third party to check some crucial points that are not in the notary due diligence. We for example at ILA provide a complete report with all the details from the access road, the land and building ratio and provide a business analysis on the property.

Make Navigating Real Estate in Indonesia Easy

Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. Specifically, we can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licenses, and more.

Find more information about our broad range of real estate services, or reach out today for a free consultation.

How to Set Up a PT PMA and Tax Optimization

1. Tax Optimization for Your Villa in Uluwatu

The way to structure the purchase is crucial and will impact the legality and the tax if the investment is for passive income. The best way is to set up a PT PMA in order to:

• Legalize the income
• Ensure a tax optimization by reinvesting some profit, having some expenses under the company before taxation and obtaining a KITAS to reduce the tax rate

The government taxes non-residents who receive money from Indonesia at 20% and 11% VAT. This amount strongly affects the ROI.

A PT PMA pays only 0.5% tax. And you can spend some income under the company before taxation, creating a significant gain for the buyer. Once you need to repay the profit, the tax is only 10%.

2. How to Start the Process of Setting Up a PT PMA and Purchase a Villa in Uluwatu

The process is easy and takes around five to ten working days. It can be done remotely and at low cost. The company needs two shareholders minimum and a single person can appoint a company overseas or parent member to be the second shareholder with only 0.1%.

The director of the company needs to apply for a KITAS (investor) in order to get a tax number and be able to have a lower tax rate on the dividend.

The company needs to appoint one director and one commissioner. The director has the authority to open the bank account. A few annual reports need to be done per year, and they can also be done remotely.

Here is the process and obligations:

• Choose a name for the company
• Define the shareholders
• Appoint a director and commissioner (can be the shareholders)
• Open the bank account
• Report your <strong>LKPM Report each quarter
• Report the tax between January and April

Purchasing a villa in Uluwatu is a beautiful project, and you’ll certainly achieve a good return on investment if you do it in a proper way. Contact us to understand more about the process and secure your investment.

Buying a villa in Uluwatu: Definitions