Reviewed by Florent Delente, Founder, ILA Global Consulting. Last updated: October 2026.
A foreigner cannot own freehold land (Hak Milik) in Bali. You have two practical routes in 2026: a long lease (leasehold) of land or a villa from an Indonesian owner, or a Hak Pakai (right of use) title on a house worth at least IDR 5 billion, about USD 279,000, which is the Bali minimum price for foreign buyers. The third route older guides recommend, buying through your own foreign-owned company (PT PMA) to rent the villa out, has been closed in Bali for new companies since May 2026, and any nominee arrangement using an Indonesian’s name is void in law.
This guide is for foreigners buying a home or a villa in Bali: what you can legally hold, what it costs, the zoning and permit traps that have tightened in 2025 and 2026, and the step-by-step process. If you are comparing Bali with Jakarta, Lombok or other islands as an investment, read our separate guide on investing in Indonesian property. Dollar figures use IDR 17,900 per USD (Katadata, 5 October 2026) and are approximate.
Can a foreigner buy property in Bali in 2026?
Yes, but not freehold. Indonesia’s Basic Agrarian Law reserves Hak Milik, the only full ownership title, for Indonesian citizens (Law 5/1960, Art. 21). What a foreigner can hold depends on the route:
| Route | What you get | Who can use it | Minimum price | Term | Can a bank lend against it? | 2026 status in Bali |
|---|---|---|---|---|---|---|
| Leasehold (hak sewa) | A contractual right to use land or a villa for an agreed period | Any foreigner, any visa | None | Agreed in the contract, commonly 20 to 30 years with extension options | No mortgage (Hak Tanggungan) possible | Available; the most common route |
| Hak Pakai for a house | A registered land title in your own name | Foreigners holding immigration documents (PP 18/2021) | IDR 5 billion for a landed house in Bali | 30 years, extendable by 20, renewable by 30 | Yes, in law | Available, one plot per person or family, up to 2,000 m2 |
| Strata apartment (Hak Milik Sarusun) | Title to an apartment unit | Same as Hak Pakai | IDR 2 billion in Bali | Follows the land title of the building | Yes, in law | Rare in Bali: few projects |
| HGB through a PT PMA | Right to build, held by your company | A PT PMA with a licensed activity that needs the land | IDR 2.5 billion paid-up capital per KBLI, not a price floor | 30 + 20 + 30 years | Yes | Real estate (68111) and villa accommodation (55900) codes closed to new PT PMAs since May 2026 |
| Nominee (Indonesian holds freehold “for you”) | Nothing you can enforce | Nobody, legally | n/a | n/a | n/a | Void under Law 25/2007 Art. 33 and the Agrarian Law |
Sources: PP 18/2021, Kepmen ATR/BPN 1241/SK-HK.02/IX/2022 as reported by hukumonline and detikProperti, December 2024, ANTARA, 23 July 2026.
ILA’s real estate legal team works on the buyer’s side: title and zoning checks, structure advice, contract review and coordination with the notary. We do not sell property and take no commission from sellers.
How does leasehold work in Bali?
Leasehold is a long rental agreement, usually signed before a notary and governed by the lease chapter of the Civil Code (Articles 1548 onward) and the contract itself. You pay most or all of the rent up front and get the right to occupy, build or renovate (if the contract allows) and often to sublet. Three features matter more than the price:
- The term and the extension clause. There is no statutory maximum for a lease, but there is also no automatic renewal. A “25 + 25 years” lease is usually 25 years plus a promise to negotiate or extend at a price or formula set now. If the formula is vague (“market price at the time”), your extension is a hope, not a right. Fix the extension price, the notice period and what happens if the owner dies or sells.
- The lease survives a sale. Under Article 1576 of the Civil Code, a sale of the land does not end an existing lease unless the contract says so. Make sure yours does not, and that the lease is signed by every person with a claim to the land: the registered owner, the spouse (marital property needs both signatures), and in many Balinese families the heirs as well.
- What happens at the end. Most Bali leases say the buildings revert to the landowner free of charge. If you are building a villa worth more than the lease, price that in.
The tax on a lease falls on the landowner: a final 10% income tax on the gross rent (PP 5/2002). In practice, the price is often negotiated “net” for the owner, so check who pays it and ask for the tax receipt, because an unpaid tax becomes your problem in a later dispute. There is no BPHTB (acquisition tax) on a lease, because it is not a land title.
The weakness of leasehold is that it is a contract, not a registered right: it does not appear on the certificate, cannot be mortgaged, and a bank holding a mortgage over the land can rank ahead of you. That is why due diligence starts with the certificate.
What is Hak Pakai, and who can hold it?
Hak Pakai is a registered right to use land, issued by the National Land Agency (BPN) in your own name. For foreigners, it is the closest thing to ownership.
Who qualifies. Government Regulation (PP) 18/2021, Article 69, lets a foreigner own a house for residence if they hold “immigration documents”. The Ministry of Agrarian Affairs (ATR/BPN) has said this means a visa, passport or stay permit, not only a KITAS or KITAP as under the old rules (detikProperti; detikTravel, 2023). In practice, some notaries and land offices in Bali still ask for a KITAS or KITAP, so a residence permit makes the file easier. If you plan to live here, our KITAS and KITAP service can run in parallel.
What you can buy. A landed house on Hak Pakai land (or on Hak Pakai granted over an Indonesian’s Hak Milik by a land deed), or an apartment unit (PP 18/2021, Art. 71). The house is for residence. One plot per person or family, up to 2,000 m2; more needs the Minister’s approval (detikProperti).
How long. A Hak Pakai on state land runs for up to 30 years, can be extended for up to 20 years and renewed for up to 30 years, 80 years in total (PP 18/2021, Art. 52). A Hak Pakai granted over someone else’s Hak Milik runs for up to 30 years and is renewed by a new deed with that owner.
Inheritance. The house can pass to your heirs. A foreign heir must also hold immigration documents (Art. 69).
If you stop qualifying. A holder who no longer meets the requirements must sell or transfer the right within one year, or it ends by law and the land reverts (PP 18/2021, Art. 50 and 62). Plan an exit if your stay in Indonesia is uncertain.
Renting it out. The title is granted for a residence. Holiday rental needs an accommodation licence that a foreign individual cannot obtain in Bali and a new PT PMA can no longer register. Buy on Hak Pakai to live in the house.
What is the minimum price for a foreigner in Bali?
The minimum prices are set by Ministerial Decree (Kepmen ATR/BPN) 1241/SK-HK.02/IX/2022, under Article 72 of PP 18/2021 and Articles 185 to 187 of ATR/BPN Regulation 18/2021 (hukumonline).
| Property in Bali | Minimum price for a foreign buyer | About USD |
|---|---|---|
| Landed house (rumah tapak) on Hak Pakai | IDR 5,000,000,000 | 279,000 |
| Apartment unit (satuan rumah susun) | IDR 2,000,000,000 | 112,000 |
| Indonesian diaspora buyers | 75% of the figures above |
Sources: detikProperti, 21 December 2024; ATR/BPN presentation on foreign ownership. We found no change to these thresholds between 2023 and October 2026.
This threshold is why most Bali villas sold to foreigners are leaseholds. If a seller offers a cheaper villa “with Hak Pakai”, ask how: either the deed price is being inflated, or the title will not be issued in your name.
Can you still buy through a PT PMA in Bali?
For a new company, in most cases no longer. Since the third week of May 2026, Bali has blocked new foreign-owned companies (PT PMA) from 18 business codes in the OSS licensing system, including real estate owned or leased (KBLI 68111), other accommodation such as villas (55900) and small hotels (55110, 55120) (ANTARA, 23 July 2026; NusaBali, 22 July 2026). Those were the codes used to buy a villa through a company and rent it out.
What remains:
- An existing PT PMA already licensed under these codes keeps its licences for now, and can hold Hak Guna Bangunan (HGB, the right to build) on its land. Before buying a company that owns a villa, check its licences, LKPM reports and tax filings; see our PT PMA setup guide.
- A PT PMA in an open sector (a restaurant, a large hotel over 6,000 m2, a clinic) can hold HGB on the land it uses for that business. It needs IDR 2.5 billion of paid-up capital per KBLI under BKPM Regulation 5/2025, and land and buildings count toward the IDR 10 billion investment plan in property and accommodation sectors (Withers). The full list of closed and open codes is in our guide to business opportunities in Bali. The closure applies to Bali only.
Why is a nominee arrangement so dangerous?
A nominee structure puts the freehold in an Indonesian’s name, with side agreements (loan, power of attorney, pledge, “statement of ownership”) meant to give you control. It does not work:
- Article 26(2) of the Agrarian Law voids any transfer that gives a foreigner Hak Milik directly or indirectly; the land falls to the state and the money paid is not refunded (Law 5/1960).
- Article 33 of the Investment Law makes any agreement in which shares or rights are held for someone else void by law (Law 25/2007).
- Bali’s 2026 regional regulation on productive farmland also targets intermediaries and facilitators of illegal land conversion (Lingkari News, February 2026).
If the nominee dies, divorces, borrows against the land or decides it is theirs, the court follows the certificate. If you already hold property this way, regularise it (a lease or a Hak Pakai) before a dispute starts.
Which zoning and permit rules can kill a Bali purchase?
This is where most Bali deals go wrong in 2026, and where the rules have tightened most.
Spatial zoning (RTRW and RDTR). Every plot sits in a zone set by the provincial and regency spatial plans; where a detailed plan (RDTR) exists, it decides what you can build. The land certificate says nothing about zoning. Ask for a KKPR (spatial use conformity confirmation) or check the zone before you pay a deposit.
Green zones and productive farmland (LP2B). In September 2025, after severe floods, Governor Wayan Koster announced a moratorium on new hotels, villas and restaurants on productive land and water catchment areas (Metro TV / Media Indonesia, 15 September 2025). On 24 February 2026 the governor signed Bali Regional Regulation (Perda) 4/2026, which bans converting protected sustainable food farmland (LP2B) into villas or other commercial property, with criminal penalties, permit cancellation, fines and demolition of buildings (Lingkari News). A cheap plot of rice field with a view in Tabanan or Gianyar is now the riskiest purchase on the island.
Building approval (PBG) and certificate of fitness (SLF). Since PP 16/2021 replaced the old IMB, a building needs a PBG before construction and an SLF before use (PP 16/2021). Many existing villas have neither, or a PBG for a house used as a rental. Without them you cannot license the building, insure it properly or resell it cleanly. Our PBG and SLF service checks the file and regularises it where possible.
Setbacks and customary land. Coastal, river and cliff setbacks (sempadan) limit where you can build. Land held by a village or customary community (tanah adat, tanah ayahan desa) may not be transferable at all, whatever a family member signs.
How much does it cost to buy property in Bali?
The taxes on a purchase are national and regional; fees for professionals are capped by law or negotiated.
| Cost | Who pays | Rate | Legal basis |
|---|---|---|---|
| BPHTB (land and building acquisition tax) | Buyer | Up to 5% of the transaction value minus a tax-free allowance (at least IDR 80 million, set by each regency) | UU HKPD 1/2022, Art. 46 and 47 |
| Final income tax on the sale (PPh) | Seller | 2.5% of the gross price (1% for simple houses) | PP 34/2016 |
| VAT on a new building from a VAT-registered developer | Buyer | 12% statutory, 11% effective | PMK 131/2024 (Kontan) |
| PPAT (land deed official) fee | Usually buyer | Capped at 1% of the transaction value | PP 24/2016, Art. 32 |
| Notary fee (lease deeds, PPJB) | As agreed | Capped by value: 2.5% up to IDR 100 million, 1.5% up to IDR 1 billion, at most 1% above | Law 2/2014 on Notaries, Art. 36 |
| Lease income tax | Landowner (lessor) | 10% final on the gross rent | PP 5/2002 |
| PBB (annual land and building tax) | Holder | Up to 0.5% of the taxable value, set by each regency | UU HKPD 1/2022, Art. 40 and 41 |
| Land office registration fees (PNBP) | Buyer | Fixed schedule, small compared with taxes |
Worked example: Hak Pakai house at IDR 6 billion in Badung. BPHTB is 5% × (IDR 6,000,000,000 − IDR 80,000,000) = IDR 296,000,000 (about USD 16,500). A PPAT fee at the 1% cap would be IDR 60,000,000; agree a fixed quote in writing. The seller pays IDR 150,000,000 of PPh. Budget roughly 6% on top of the price for taxes and deed costs, plus legal due diligence.
Worked example: 25-year lease at IDR 3.5 billion. No BPHTB and no PPh for you as tenant. The owner owes IDR 350,000,000 of final tax, which is often built into the price. Your costs are the notary, due diligence and, if you build, the PBG.
Annual PBB. Rates are set locally under UU HKPD. Denpasar, for example, charges 0.1% on NJOP up to IDR 1 billion and 0.2% above (DDTC News, February 2024). A home with an NJOP of IDR 4 billion in Denpasar pays at most about IDR 8 million a year. Our property tax guide covers rental income and resale tax in detail.
What due diligence should you do before you pay a deposit?
Run these checks before any money leaves your account, including a “reservation fee”.
| Check | Where | What a red flag looks like |
|---|---|---|
| Land certificate (SHM, HGB or Hak Pakai) | Original certificate, then a check at the land office (BPN) through the PPAT; plot location on the Sentuh Tanahku app | Name does not match the seller; certificate “in process”; plot boundaries differ from what you were shown |
| Encumbrances | BPN certificate check | A registered mortgage (Hak Tanggungan), a court seizure note or a block |
| Seller’s authority | ID, family card, marriage certificate, heirs’ statements | One heir signing for the family; a spouse missing; a power of attorney from abroad |
| Zoning | RDTR, KKPR, LP2B maps | Green zone, LP2B farmland, catchment area, setback |
| Building permits | PBG and SLF | No PBG, a PBG for a house used as a rental, extra floors not on the approval |
| Tax status | PBB receipts (SPPT) for the last 5 years | Arrears in the land tax |
| Access and utilities | Site visit, neighbours, village head (kepala desa or lurah) | Access across a neighbour’s land without a registered right; no PLN power or water connection |
| Customary status | Banjar and village, adat records | Land in tanah ayahan desa or other communal land |
| Disputes | Court records (SIPP) and the village | Pending claims, family disputes, earlier sales of the same plot |
ILA’s due diligence team runs these checks and reports in English or French before you commit.
What are the steps to buy a villa in Bali?
Hak Pakai purchase
- Choose the structure (Hak Pakai, leasehold or an existing company) and confirm you meet the price and document rules.
- Sign a reservation letter with a refundable deposit held by the notary, not the seller, conditional on due diligence.
- Run due diligence (above), and get the certificate checked at BPN.
- Sign a conditional sale and purchase agreement (PPJB) if anything is outstanding: a missing PBG, a heir’s signature, a split of the plot.
- Pay the taxes. The seller pays PPh, you pay BPHTB, and both are validated before the deed can be signed.
- Sign the deed of sale (AJB) before the PPAT, in Bahasa Indonesia with a translation. Pay the balance through the notary or by bank transfer against the deed.
- Registration. The PPAT files the deed at BPN, which records the transfer and issues the Hak Pakai in your name. Allow several weeks to a few months.
- After completion: change the PBB record, utilities and banjar registration to your name.
Leasehold
- Reservation and deposit with the notary.
- Due diligence on the owner’s certificate, zoning and permits.
- Negotiate the lease: term, extension price, subletting, building rights, transfer and inheritance, early termination, dispute forum.
- Sign a notarial lease deed (akta sewa) with all owners and spouses.
- Pay against the signed deed, and keep proof that the owner paid the 10% lease tax.
The legal contract work at steps 3 and 4 is where a lease becomes safe or unsafe. ILA’s contract team drafts and reviews bilingual leases and PPJBs.
How do you find and vet a villa investment?
Most Bali sales go through agents. Check that the agency is a registered company licensed for real estate brokerage (KBLI 68200) on OSS, and that its commission is stated in writing. Warning signs:
- “Freehold for foreigners” or “Hak Pakai” on a villa priced under IDR 5 billion.
- A “guaranteed rental yield” of 12% to 15%. Non-star accommodation in Bali ran at 43.16% occupancy in August 2026 (BPS Bali), and a new foreign company can no longer get a villa rental licence.
- Off-plan villas sold as “leasehold” by a developer who does not yet hold the land lease, or who signs your contract before the PBG is issued.
- Pressure to pay a large deposit directly to the seller or the agent’s personal account.
- A seller who refuses a notary of your choice.
If you are buying for rental income, read our guide on renting out property as a foreigner first, because the licensing and tax rules decide whether the numbers work.
Can you get a mortgage to buy in Bali?
Rarely. A leasehold cannot carry a mortgage (Hak Tanggungan), and very few Indonesian banks lend to foreigners. Most buyers pay cash, borrow at home or use a developer’s instalment plan; see our guide to mortgages for foreigners in Indonesia.
Get the structure right before you pay
The right structure depends on your visa, budget, length of stay and whether you want rental income. ILA’s real estate legal team reviews the title, zoning and contract and coordinates the notary, in English, French or Indonesian. Contact us before you sign a reservation letter.
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Frequently asked questions
Can a foreigner own freehold land in Bali?
No. Hak Milik is reserved for Indonesian citizens under the Agrarian Law. Foreigners can hold a lease, a Hak Pakai title on a house worth at least IDR 5 billion in Bali, or an apartment unit worth at least IDR 2 billion.
Do I need a KITAS to buy property with Hak Pakai?
Under PP 18/2021 you need “immigration documents”, which ATR/BPN has said includes a passport or visa. Some Bali notaries and land offices still ask for a KITAS or KITAP, so a residence permit avoids delays.
How long does Hak Pakai last?
Up to 30 years, extendable by 20 and renewable by 30, so 80 years in total on state land. If you stop qualifying, you must transfer it within one year.
Can I still buy a villa through a PT PMA in Bali?
A new PT PMA cannot register real estate rental (68111) or villa accommodation (55900) in Bali since May 2026. An existing licensed company, or a company in an open sector that needs the land for its business, can still hold HGB.
How long can a leasehold be in Bali?
There is no legal maximum. Most leases run 20 to 30 years with an extension clause. The extension is only as good as the price and conditions written into the contract now.
What taxes does a foreign buyer pay in Bali?
On a purchase, BPHTB of up to 5% of the price minus the regency’s allowance, plus VAT if you buy new from a developer. The seller pays 2.5% final income tax. On a lease, the owner pays 10% final tax on the rent. Every year, PBB at a local rate of up to 0.5%.
Can my Indonesian spouse buy freehold for us?
Yes, if you signed a prenuptial agreement, or a postnuptial agreement allowed since Constitutional Court Decision 69/PUU-XIII/2015, separating your property. Without one, the land is joint marital property, which a foreign spouse cannot hold, and the freehold is at risk.
Sources
- Law 5/1960 on Basic Agrarian Principles, JDIH BPK
- PP 18/2021 on Management Rights, Land Rights, Apartment Units and Land Registration, JDIH BPK
- ATR/BPN Regulation 18/2021 on Procedures for Management Rights and Land Rights, JDIH BPK
- Hukumonline: minimum prices for foreigners under Kepmen ATR/BPN 1241/SK-HK.02/IX/2022 (February 2023)
- detikProperti: foreigners owning property in Indonesia, rules and minimum prices (21 December 2024)
- ATR/BPN presentation: property ownership and land certainty for foreigners
- detikTravel: foreigners can buy property in Bali with a passport and visa (2023)
- Law 25/2007 on Investment, JDIH BPK
- ANTARA: Bali blocks foreign investment in 18 business categories (23 July 2026)
- NusaBali: Governor Koster limits OSS access for PMA (22 July 2026)
- Withers: key takeaways from BKPM Regulation 5 of 2025
- Metro TV / Media Indonesia: Bali moratorium on hotels and villas on productive land (15 September 2025)
- Lingkari News: Bali Perda 4/2026 on farmland conversion (February 2026)
- PP 16/2021 on Buildings (PBG and SLF), JDIH BPK
- UU HKPD 1/2022 on Central and Regional Fiscal Relations, JDIH BPK
- PP 34/2016 on Income Tax on Land and Building Transfers, JDIH BPK
- PP 5/2002 on Income Tax on Land and Building Rental, JDIH BPK
- PP 24/2016 on Land Deed Officials (PPAT), JDIH BPK
- Law 2/2014 amending the Notary Law, JDIH BPK
- DDTC News: Denpasar regional tax rates (February 2024)
- BPS Bali: tourism developments, August 2026
- Kontan: PPN 12% applies only to luxury goods, PMK 131/2024
- Katadata: rupiah at IDR 17,916 per USD (5 October 2026)
