The Legal Side to Buy Property in Bali

Buying property in Bali can be exciting, but it comes with legal and practical challenges for foreigners. From ownership restrictions to visa requirements and investment safety, it’s crucial to understand the rules before making a decision. This guide highlights the top three questions every foreign buyer should consider first.

Top 3 Questions When Buying Property in Bali

The legality of buying a property in Bali, Indonesia has been a topic of discussion for many potential buyers.

Can Foreigners Own Land?

Understand legal limits on property ownership in Indonesia.

What Are Visa Options?

Know which visas allow long-term property use.

How Safe Is My Investment?

Learn about legal protections and ownership risks.

Can Foreigners Own Land?

The Indonesian government has strict rules in place to regulate foreign ownership of land, with the aim of protecting their national assets and preventing foreigners from owning large portions of the island. One of the main regulations states that foreigners can only hold a 30-year lease on a property, with the option to extend for an additional 30 years. In addition, there are certain restrictions on the type of properties that can be bought by foreigners, such as villas or apartments in certain designated areas. It is also important to note that all land transactions must go through a notary and a land certificate must be obtained from the Indonesian National Land Agency. It is crucial for potential buyers to seek legal advice and thoroughly research the laws and regulations before purchasing a property in Bali to ensure a smooth and legal transaction.

What Visa Option?

Foreigners cannot directly own freehold property in Indonesia, but long-term stays and property use are possible through specific visa types. Common options include the Investor KITAS, Retirement Visa, or Second Home Visa. Each has different requirements and benefits, so choosing the right visa is key for legal, long-term property use.

How Safe Is My Investment?

Investing in property in Bali can be safe if done correctly. Since foreigners can’t directly own land, most use leasehold agreements or set up legal entities. Each option has its risks, so working with a reputable notary and legal advisor is essential. Always verify land titles, permits, and zoning regulations. With proper due diligence and legal structure, your investment can be both secure and rewarding in the long term.

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