A foreigner can hold property in Bali in three ways: a leasehold contract with the landowner, a Hak Pakai (right of use) title in your own name if you hold a valid stay permit and the house meets the minimum price for Bali, or a Hak Guna Bangunan (right to build) title held by an Indonesian company you own, a PT PMA. Foreigners cannot hold freehold (Hak Milik) and nominee arrangements are illegal. In 2026 the PT PMA route changed: Bali closed real estate, small hotel and other accommodation business lines to new foreign-owned companies, so a new PT PMA can no longer be set up in Bali just to buy and rent out a villa. This guide explains what still works, what it costs and what to check before you pay.
Key takeaways
- Foreigners cannot own freehold land in Indonesia. The options are leasehold, Hak Pakai in your own name, or HGB through a PT PMA.
- Hak Pakai in Bali requires a valid stay permit and a built house worth at least IDR 5 billion, or an apartment of at least IDR 2 billion, under the 2022 ministerial decree.
- Since May 2026 a new PT PMA in Bali cannot register real estate (68111), other accommodation (55900) or small hotel codes. Existing companies keep their licences.
- Any villa rented to guests needs a licence. Airbnb and Booking.com have been removing unlicensed Bali listings since March 2026.
- Never use a nominee. The arrangement is void under Indonesian law and you have no enforceable rights.
The three ways a foreigner can hold property in Bali
| Leasehold (Hak Sewa) | Hak Pakai (right of use) | HGB through a PT PMA | |
| Who can hold it | Any foreigner, no permit needed | A foreigner with a valid stay permit or visa, one house per person | An Indonesian company with foreign shareholders |
| What you can buy | Land, villa, apartment, by contract | A built house or a strata apartment, not bare land | Land and buildings for the company’s business |
| Term | Agreed in the contract, typically 25 to 30 years, extensions by agreement | 30 years, extendable by 20, renewable by 30 (80 in total) | 30 years, extendable by 20, renewable by 30 (80 in total) |
| Minimum price in Bali | None | House IDR 5 billion, apartment IDR 2 billion | None, but the company has its own capital rules |
| Can you rent it out | Only if the contract allows it and the rental is licensed | For your own use; rentals need a licensed operator | Yes, if the company holds the right KBLI and licences |
| Can you sell or mortgage | You can transfer the remaining lease if the contract allows | Yes, to another eligible buyer | Yes, as a company asset, or by selling the company’s shares |
| 2026 status in Bali | Unchanged | Unchanged | New PT PMAs cannot register real estate or accommodation codes in Bali |
1. Leasehold
A leasehold is a private contract between the landowner (lessor) and you (lessee). You do not become the owner. You buy the right to use the property for the agreed period, and the owner stays responsible for the land title and the annual land and building tax unless the contract says otherwise.
Indonesian law sets no maximum term for a lease, and long leases have been upheld by the courts, but the market standard in Bali is 25 to 30 years with an option to extend at a price fixed in the contract. The lease can be signed before a notary or privately. We recommend a notarial deed and a bilingual contract, because most disputes we see come from a clause that was translated badly or never discussed.
What to check in a leasehold: that the person signing is the registered owner on the certificate, that the extension price and mechanism are written down, that the contract allows subletting or short term rental if you plan to rent, who pays which taxes, what happens if the owner sells the land, and what happens at the end of the term.
2. Hak Pakai in your own name
Hak Pakai is a registered land title. Under Government Regulation No. 18 of 2021 and the Ministry of Agrarian Affairs regulation that implements it, a foreigner who holds a valid immigration document, from a visa to a KITAS or KITAP, can hold Hak Pakai over a house and land, and can own a strata title apartment, in their own name.
The conditions are strict. The property must be a built house or apartment, not bare land. It must meet the minimum price set for each province, which for Bali is IDR 5 billion for a landed house and IDR 2 billion for an apartment under Ministerial Decree No. 1241/SK-HK.02/IX/2022. A foreigner may hold one house per person or family, generally on a plot of up to 2,000 m². The title runs for 30 years and can be extended by 20 and renewed by 30, which is 80 years in total, and it can be sold to another eligible buyer or inherited.
Hak Pakai suits a home you will live in or use yourself. It is not a business title, so renting it to guests requires a licensed operator and the correct building approvals.
3. HGB through a PT PMA
A foreign-owned company (PT PMA) can hold Hak Guna Bangunan, the right to build, over land it uses for its business. HGB runs for 30 years, extendable by 20 and renewable by 30, and the company can sell, transfer or mortgage it. Because the company is the owner, the property can also change hands by selling the company’s shares.
This used to be the standard route for a foreigner who wanted to buy a villa and run it as a rental. In 2026 that changed. Since the third week of May 2026, Bali has closed 18 business lines to new PT PMA applications, and they include real estate owned or leased (68111), other accommodation such as villas and guesthouses (55900), and star and non-star hotels under 6,000 m² (55110 and 55120). A new PT PMA in Bali can therefore not register the codes it would need to buy, hold and rent out a villa as a business.
What still works: a PT PMA that already holds these codes keeps them and can keep buying and operating property under them. A PT PMA set up for a different, open activity can hold HGB over the premises it genuinely uses for that activity, for example a restaurant or a studio, but not as a way to hold a rental villa. And the same company codes remain open outside Bali, for example in Lombok, subject to national rules. Read our article on Bali’s closed business lines before you plan a structure.
A PT PMA also has its own requirements: at least two shareholders, a resident director, a physical business address in Bali (virtual offices are no longer accepted), paid-up capital of IDR 2.5 billion and an investment plan of more than IDR 10 billion per business line, and quarterly and monthly reporting. The costs of running the company are part of the cost of owning the property this way.
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. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more.
Find more information about our broad range of real estate services, or reach out today for a free consultation.
What is not allowed
Foreigners cannot hold Hak Milik (freehold) in Indonesia, directly or indirectly. The common workaround, putting the title in an Indonesian friend’s or partner’s name with a side agreement, is a nominee arrangement. It is prohibited by the Agrarian Law and the agreement is void. If the relationship breaks down, the nominee is the legal owner and the courts will not enforce your side agreement. We have handled cases where foreigners lost both the property and the money. Whenever a legal structure exists for what you want to do, use it.
Buying step by step
- Define what you want to do with the property. Living in it, holding it for the long term, or renting it to guests each point to a different structure and a different licence.
- Check the zoning. Bali’s spatial plan sets what can be built and operated where. A villa in a green zone cannot be licensed for rental, and building on it can be stopped or demolished, as happened on parts of the Bukit in 2025.
- Sign a written offer or pre-agreement with the main terms, and pay any deposit into an escrow account, not to the seller directly.
- Carry out legal due diligence: the certificate and the seller’s right to sell, encumbrances and mortgages, disputes, boundaries against the measured land, road access, building approvals (PBG) and the certificate of fit function (SLF), outstanding taxes and, for a lease, the existing tenancy terms.
- Have the sale, lease or HGB transfer agreement reviewed by an independent adviser before the notary meeting. The notary records the transaction; the notary does not negotiate for you.
- Pay the taxes and fees, then sign the deed before the land deed official (PPAT) or notary and register the transfer or lease at the land office where applicable.
- If you will rent to guests, obtain the villa licence before you list. Airbnb and Booking.com have been removing unlicensed Bali villas from their platforms since 31 March 2026, with a further wave in August.
Taxes and fees
| Who pays | Rate | |
| Final income tax on the sale of land or buildings (PPh Final) | Seller | 2.5 percent of the transaction value |
| Land and building acquisition duty (BPHTB) | Buyer | 5 percent of the taxable value above the regional threshold |
| Annual land and building tax (PBB) | Owner | Up to 0.5 percent of the assessed value, set by the regency |
| Tax on rental income | Lessor | 10 percent final tax for Indonesian tax residents, 20 percent withholding for non-residents unless a tax treaty applies |
| Notary and PPAT fees | Usually the buyer | Commonly 0.5 to 1 percent of the transaction value |
Renting out the property
A villa rented to guests is a business and needs a licence whatever title it sits on. Which licence depends on who the operator is and what the property is: an Indonesian individual can license a small homestay, a company needs the right accommodation code and standard certificate, and every operator needs the building approval (PBG), the certificate of fit function (SLF) and the correct zoning. Since 2026 the platforms check this. Our villa licensing page explains what a rental in Bali needs now.
Where foreigners buy in Bali
Demand is concentrated in Canggu and Pererenan, the Bukit peninsula (Uluwatu, Bingin, Balangan), Seminyak and Legian, Ubud, and increasingly Sanur and the west coast towards Seseh and Kedungu. Each area has its own zoning, and the areas with the strongest rental demand are also the ones where enforcement against unlicensed building and rentals is most active. Price and yield are a matter for a licensed agent; the legal checks above are the same everywhere.
Working with professionals
Use a licensed real estate agent (ask for the AREBI membership and broker certificate), a notary or PPAT for the deed, and an independent adviser for the contract and the due diligence. The seller’s notary works for the transaction, not for you. If you will not live in Bali, a property manager with proper accounting and licensing is worth the fee.
Leasehold
Non-resident lessors must pay a lease tax of 20%, while those with a KITAS only have to pay 10%. Other costs such as notary (0.5% to 0.75% of the transaction value) and legal costs to prepare documentation.
Working with Real Estate Professionals
Working with real estate experts significantly eases the process of buying property within the Bali real estate market. These professionals, including agents and property management firms, can help you find and secure properties in Bali, offer informed advice, and help you optimize your investment outcomes.
Need help with a purchase in Bali?
ILA checks the title, the zoning, the contract and the structure before you commit, and sets up the company or the licence when one is needed. Book a consultation or see our real estate and property services.
Frequently Asked Questions
Can a foreigner buy property in Bali?
Yes, but not freehold. A foreigner can take a leasehold, hold a Hak Pakai title in their own name if they have a valid stay permit and the house meets the minimum price, or hold HGB through an Indonesian company they own. Nominee arrangements are illegal.
What is the minimum price for a foreigner to buy a house in Bali?
For a Hak Pakai title in your own name, IDR 5 billion for a landed house and IDR 2 billion for an apartment in Bali, under Ministerial Decree No. 1241 of 2022. Leasehold has no minimum.
Can I set up a PT PMA in Bali to buy a villa and rent it out?
Not any more as a new company. Since May 2026 Bali has closed the real estate (68111), other accommodation (55900) and small hotel codes to new PT PMA applications. Companies that already hold these licences are not affected, and the codes remain open in other provinces.
How long is a leasehold in Bali?
There is no legal maximum. Most leases are 25 to 30 years with an extension option written into the contract. The lessee does not own the land.
Do I need a licence to rent my villa on Airbnb?
Yes. A rental needs the correct accommodation licence, the building approval (PBG), the certificate of fit function (SLF) and the right zoning. Airbnb and Booking.com have been removing unlicensed Bali listings since March 2026.
Is a nominee agreement legal in Indonesia?
No. Holding land through an Indonesian nominee is prohibited and the agreement is void. The nominee is the legal owner and you cannot enforce the side agreement.
Contact us if you are looking to invest in a property in Bali or book an online meeting with us.
