Foreigners can buy property in Bali, and the market in 2026 is a mature one. The legal framework is clear and the professional infrastructure is in place. What has changed in recent years is the cost of doing it wrong: nominee arrangements are now expressly prohibited under Peraturan Daerah Provinsi Bali Nomor 4 Tahun 2026, and zoning enforcement has teeth it previously lacked. A properly structured purchase is more secure than it has ever been. Cutting corners is no longer cheap.
Ownership structures
Can foreigners own freehold property in Bali?
No. Freehold ownership — the Hak Milik title — is reserved for Indonesian citizens under the Basic Agrarian Law of 1960. A foreigner cannot hold Hak Milik directly. Any attempt to do so is automatically void, and the land reverts to the state. Foreign ownership happens through one of three other structures: leasehold, PT PMA with Right to Build, or Right to Use.
What is leasehold, and how does it work?
Leasehold (Hak Sewa) is a contractual right to use land owned by an Indonesian citizen for a defined period. Initial terms in Bali typically run 25 to 30 years, extendable to a total of 80 years under the Omnibus Law framework. Payment is made upfront to the landowner. The agreement is registered through a PPAT notary and specifies usage rights, transfer rights, and extension terms. It requires no Indonesian residency and no corporate structure, which is why it is the most common route for individuals buying a single property.
What is a PT PMA, and when is it the right structure?
A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a foreign-owned Indonesian company. It can hold HGB (Hak Guna Bangunan, Right to Build) titles, which run 30 years initially, extendable to 80 years in total under BKPM Regulation No. 5/2025. The company requires a minimum paid-up capital of IDR 2.5 billion — approximately USD 150,000 — with setup fees of USD 1,600 to 4,000 and ongoing compliance obligations. It is the structure for buyers operating a rental business, holding multiple properties, or planning for succession.
What is Hak Pakai?
Hak Pakai (Right to Use) is a residency-based title for foreigners who already hold a KITAS or KITAP permit. It runs 30 years initially, extendable to 80 years in total. It is the strongest individual title available to a foreigner, but the residency requirement means it is only available to people with Bali residency or actively applying for it. The property must also meet a minimum value threshold, typically IDR 2 to 5 billion.
<Which route is right for me?
For most international buyers of a single villa, leasehold is the practical answer. For a buyer operating a rental business or holding a portfolio, PT PMA with HGB is the structure. For buyers with Bali residency, Hak Pakai is the strongest individual title. The decision is not a matter of preference: it is a matter of matching the structure to what the property will actually be used for.
The legal framework is clear, and the professional infrastructure is in place.
Nominees and legal risk
What is a nominee arrangement, and why is it dangerous?
A nominee arrangement places a local citizen on the title, with a private side agreement assigning control to a foreigner. These structures were already legally unenforceable. Under the 2026 provincial regulation, they are now actively prosecuted. The foreign party has no legal recourse if the arrangement breaks down. Nominees are not a route into the market; they are a way of losing your money.
Are nominee structures still used?
They are still occasionally offered by informal agents, usually as a way to access freehold at an apparent discount. The discount reflects the risk. Any developer or agent proposing a nominee structure in 2026 should be treated as a disqualifying signal.
Costs
What does a buyer pay on a leasehold purchase?
Typically, a notary and PPAT fee of around 1% of the transaction value. The 10% lease tax (PPh) is paid by the lessor, not the lessee. Agent commission — usually 2.5 to 5% — is paid by the seller. Leasehold is otherwise tax-exempt for the buyer, which is why it is the lowest-friction route for most transactions.
What are the costs of a freehold transaction?
BPHTB, the land and building acquisition tax, at 5% of the transaction value. The seller pays PPh income tax at 2.5%. Notary fees run from 0.5 to 2.5%, with PT PMA transactions at the higher end. On a PT PMA purchase, the buyer also carries company setup and ongoing compliance costs.
What are the annual holding costs?
PBB, the annual property tax, runs from 0.05 to 0.20% of assessed value. Because assessed values (NJOP) sit well below market, typical annual bills on a mid-range Uluwatu villa land between USD 60 and 300. Rental income tax is 10% of gross revenue with an NPWP (Indonesian tax ID), or 20% without one.
Due diligence
What is the single most important check before buying?
The zoning check. The OSS/KKPR system — Kesesuaian Kegiatan Pemanfaatan Ruang — determines what a plot can legally be used for. A plot zoned for agriculture cannot host a rental villa, regardless of what the seller or agent suggests. Non-compliant structures are currently being demolished, and zoning variance applications are not a reliable remedy. The zoning must be verified through the OSS portal (oss.go.id) before any commitment is made. Your PPAT notary can run this check.
Who is a PPAT, and why does the choice matter?
A PPAT (Pejabat Pembuat Akta Tanah) is a state-licensed notary specifically authorised to transfer land rights in Indonesia. Not every notary is a PPAT. The PPAT drafts and registers the deed, verifies titles at the BPN (National Land Agency), and ensures the transaction is recorded. Using an independent PPAT — engaged directly by the buyer, paid by the buyer, reporting to the buyer — is the first line of defence against almost every failure mode in a Bali transaction. The notary introduced by the seller is not independent.
Can I buy property remotely, without being in Bali?
Yes. Over half of international purchases now close remotely using a notarised Power of Attorney (Surat Kuasa). The process is legally established and widely used. The conditions are the same as an in-person purchase: independent notary, zoning verified, deposit held in notary escrow, not paid directly to the seller. A deposit going to a seller rather than escrow is a red flag whether you are in the room or not.
The developer question
Why does the developer matter more than the location?
In 2026, who built a project and whether they will still be around and accountable in ten years is the primary risk variable in the Bali market, ahead of micro-location and ahead of product type. The early-2020s wave of off-plan projects sold by newly formed entities delivered mixed results; several failed, and several more were delivered with significant gaps between the marketing and the finished product. Vetting the developer is now the highest-leverage piece of due diligence a buyer can do.
What should I ask a developer before signing?
How many projects have they completed, and can you visit them. Who is the legal entity signing the contract, and who sits behind it. How are construction payments structured, and what protects the buyer if the developer fails mid-build. What is the operating track record of earlier projects — occupancy, yield, maintenance response. Answers should be specific. Vague answers on any of these are a signal to walk away.
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