Question:
Can Foreigners Buy a Property in Bali?
Answer:
Well, you need to understand some legal frameworks before you purchase any properties in Bali.
Discovering the opportunity to own property in Bali as a foreigner can be an exciting prospect. However, it’s crucial to understand the specific property titles available and the legal nuances that accompany them. In this guide, we’ll explore the types of property titles foreigners can acquire in Bali and the essential steps in the buying process.
Property Titles Open to Foreigners
Foreigners in Bali can acquire property through leasehold or right-to-use titles. While freehold titles are exclusive to Indonesian citizens, foreigners have viable options for ownership.
Leasehold (Hak Sewa)
Leasehold is the simplest form of property ownership available to foreigners in Indonesia. With a valid passport and a current stay permit, such as a business visa, you can purchase leasehold properties without a legal limit. Lease terms typically range from 25 to 30 years, with the possibility of extension. It’s crucial to draft a carefully worded agreement to ensure an enforceable lease extension.
Right of Use (Hak Pakai)
The right-of-use title is considered the most valuable for foreign investors in Bali. To qualify, you need a temporary or permanent residential permit or a retirement visa if you’re above 55. This title, with an initial term of 30 years, can be extended for two additional terms of 20 years each. Importantly, you can only own this title if there is a building on the land, preventing speculation on bare land.
Right to Build (Hak Guna Bangunan)
Reserved for Indonesian companies, the right to build title is accessible to foreign-owned companies. This title follows a similar structure to the right-of-use title in terms of initial terms and extensions. Foreign investors interested in this option should establish a foreign investment company (PT PMA) with a minimum of two shareholders.
Navigating the Buying Process
Understanding the legal framework is crucial when venturing into the property market in Bali. The buying process involves reaching an agreement with the seller, drafting a sale and purchase agreement, and paying a 10% deposit to a notary. Due diligence, including legal document checks and property inspections, is recommended with the assistance of a lawyer and a builder. The final step involves signing the sale and purchase deed in front of a notary, paying taxes, and obtaining the keys to your property.
As policies may change, it’s essential to stay informed about the latest regulations. If you’re considering investing in property in Bali, reach out to our team of real estate experts for up-to-date information and guidance. Ensure a smooth and secure property ownership experience by following these guidelines and protecting your investment with a reputable insurance policy.