Investing in Sanur has become increasingly attractive as the area has undergone significant transformation over the years. Once known as an old red district, Sanur evolved into a popular retirement destination and is now a dynamic hub drawing families seeking a peaceful environment and more affordable investment opportunities compared to Canggu or Uluwatu.
However, investing in Sanur is like other places in Bali—there are a few things to consider before moving or investing in a property or business in this area.
Legal option for purchasing a property in Sanur
When it comes to purchasing a property in Sanur, there are plenty of villa and apartment opportunities. However, as Sanur was one of the first places to be developed more than twenty years ago, there are fewer available.
Most of the offers on the market are indeed villas and apartments. Developers are developing modern apartments in Sanur near the beach. Other developers are exploring the north of Sanur acquiring land to develop new hotel or apartments complexes.
As foreigners there are few possibilities on how to purchase a property in Sanur. Hak Pakai is one option foreigners can take a look at.
Buy under Hak Pakai
Foreign Individuals must have a KITAS (Temporary Stay Permit) or KITAP (Permanent Stay Permit) and they can only own one residential property (not for commercial purposes). The property must meet the minimum price requirement set by the Indonesian government.
A Foreign-Owned Companies (PT PMA) or representative office can also hold Hak Pakai for commercial use and it can be used for business activities, such as hotels, villas, or rental businesses.
Key Minimum Criteria for Hak Pakai in Bali
The land must be Registered as State-Owned or Hak Milik (Freehold) and the Hak Pakai title can be granted on state-owned land or converted from Hak Milik (Freehold) through a lease agreement with an Indonesian owner.
The Indonesian government sets minimum property price rules to qualify for Hak Pakai as of the latest regulations (Minister of Agrarian Affairs Regulation No. 18 of 2021), the minimum price for properties in Bali is IDR 5 billion for landed houses (villas) and IDR 2 billion for apartments. It is important to note that the Maximum Land Size is limited to 2,000 m² per person, but more can be granted with special approval from the government.
The Hak Pakai Duration is granted for 30 years and renewable for 20 years and extendable for another 30 years.
Leasehold
A leasehold is a rental agreement called Hak Sewa. This type of agreement can be notarized or not and is a simple contract with terms and conditions. The foreigner is not an owner but a lessee. It means that the terms and conditions in the contract define what the lessee can do with the property.
It is not rare to see foreigners renting a property for 20 or 30 years. In a leasehold, the duration is defined in the agreement. There are also some developers offering 100 year leases in order on a freehold property owned by a local person.
In the difference with a freehold property, the contract is very important as all the aspects are defined in the agreement. The notary is to ensure all parts understand the terms and the contract respects the law. However the notary doesn’t negotiate the terms and conditions. We recommend hiring a legal representative or lawyer in order to review and define all terms and conditions.
HGB
The HGB is also a way to acquire a piece of land by setting up a company. The company called PT PMA allows people to purchase land and obtain a right to build. This option is certainly the most protective as it allows foreigners to own and build under the company. The building permit and all legal documents will be under the company., as it allows.
The duration of the HGB is 30 years, with a renewal of 20 years and an extension of 30 years.
SHMSRS
This title is similar to a Hak Pakai for apartments and condos but with no limitations. The foreigner can own a title related to the apartment for a period of 30 years and renewable for 20 and extendable for 30 years.
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.
Things to consider by purchasing a property in Sanur and Bali
When it comes to investing in a property several considerations have to be studied in addition to the Return on Investment.
ROI: Investing in Sanur requires careful consideration of the expected ROI. While developers often calculate returns instantly, future market fluctuations can impact actual profitability. Since Bali’s property market is evolving rapidly, it’s essential to analyze trends, consult professionals, and verify published figures before making an investment decision.
Zoning: Not all zones in Bali allow property to be rented out on a daily basis. If the investment is for business purposes, we recommend to take a serious look at your will structure your business
Tax perspective: All ROI provided is usually a gross amount before taxes. We recommend taking a look at the tax. Having a stay permit through a retirement KITAS, a company PT PMA with investor KITAS can lower the taxes
Building Permits: Unfortunately, half of new construction does not have legal permits, and property is illegal. As a reminder an application number doesn’t constitute an approval. The PBG has to be obtained before the construction can start.
Legal permit of the developer: Unfortunately, some developers do not have the right license to operate in Indonesia. Some of them do it because they got bad advice and trust having the right permit and some do it intentionally. We do recommend to have a proper due diligence on the seller as well.
Also read: Bali and Lombok Investment Trend for 2025
Legal visa to live in Sanur and Bali
If you plan on investing in Sanur—whether for retirement, living full-time, or visiting for a few months to enjoy your villa—there are several options to consider.
Retirement KITAS: This multiple-entry stay permit allows you to stay one year in Indonesia
Silver hair KITAS: This multiple-entry stay permit allows you to live in Indonesia for 5 years. The visa is also renewable.
Investor KITAS: Granted for people having a company in Indonesia and investing a certain amount, this visa is valid for 2 years
Family KITAS: This one is granted for family members of a KITAS holder. Kids and spouses can also stay in Indonesia during the validity of the permit of the KITAS holder.
Second home KITAS: This KITAS valid for 5 years allows people to live in Bali for a validity of 5 years. The KITAS holder needs to purchase a property for a value of 1,000,000 USD or make a deposit of 130,000 USD in a State Bank Owned.
How to find a property in Sanur and Bali
There are several ways to find properties when investing in Sanur and Bali. The fastest and safest option is to contact real estate agents. We do not recommend reaching out to individuals on social media groups, as scams can occur. Reliable developers like Investland or trusted investment platforms such as the ILA Investment page can help you find the right property.
Contact us to know more how to find and secure your investment in Sanur or in Bali.
