Buying Property in Bali: How to Do It Legally And Safely

For many people, Bali starts as a trip and slowly becomes a dream; a home, a retreat, a business, or an investment that blends lifestyle and returns. With rising tourism and growing demand for villas and boutique rentals, owning property here has never been more appealing.

But there’s always one big question:

“Can foreigners legally buy property in Bali and how?”
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The answer is yes! As long as you follow the right legal paths.
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Here’s a clear and easy way to understand it.

First Step: Know What You’re Buying

Before falling in love with a view or villa, make sure everything behind it is legal and clean.

That means checking the land certificate, ensuring the zoning allows you to build or rent, and confirming all taxes are paid.If the property is already built, it should have two important documents: permission to build (PBG) and permission to use (SLF).

Skipping this step is the fastest way to lose money or face legal issues later.

Secure It the Right Way, With the Right Structure

Foreigners cannot directly own freehold land in Indonesia — that’s only for Indonesian citizens. But that doesn’t mean you can’t own or control property legally.
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Here are the two most trusted and secure ways:
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1. Right to Build (Hak Guna Bangunan / HGB)

This is the best option if you want long-term control and plan to run a villa, business, or rental legally.

• You set up a foreign-owned company (PT PMA).
  
  
• The company holds the land under Right to Build.
  
  
• You can build, operate, rent, and even extend your rights (30 + 20 years).
  
  
• You’re fully protected under Indonesian law.
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2. Leasehold (Hak Sewa)

If you don’t want to open a company, leasehold is the simplest option.

• You lease the land or villa directly from the owner.
  
  
• Contracts typically run for 20–30 years and can be extended.
  
  
• It’s perfect for homes, holiday rentals, or investment properties.
  

Both structures are legal and safe when handled properly through a notary and legal advisor.
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Not in Bali? You Can Still Buy

If you're abroad during the process, you can give a legal Power of Attorney to a representative who will sign documents on your behalf, officially, safely and with full legal recognition.
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The Final Step: Make It Official

Once everything is clear, land status, contracts, ownership rights - the purchase is completed by signing the Sale and Purchase Deed (AJB) or Lease Agreement in front of a licensed notary.

This step is where your ownership becomes legal, recorded, and protected.
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Common Mistakes That Cost Investors Time and Money

• Buying land in the wrong zoning area.
  
  
• Skipping due diligence and trusting verbal promises.
  
  
• Signing contracts without legal review.
  
  
• Ignoring taxes or using nominee names.
  
  
• Rushing because “someone else is interested.”
  

Bali rewards patience and careful planning. A few extra days of checking now can save years of stress later.

Want to Invest With Confidence, Not Guesswork?

That’s where we come in.

At Uluwatu Advisory (part of Uluwatu Property), we help investors buy property the right way from legal checks and zoning verification to company setup, tax structure, and contract signing.

Whether it’s your first villa or your fifth, we make the process clear, transparent, and fully legal.

Book a free consultation with our advisory team
www.uluwatuproperty.com/legalExplore our tax and accounting support
www.uluwatuproperty.com/accounting

Start your Bali property journey, not with uncertainty, but with clarity and confidence.

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