Can Foreigners Buy Land in Bali? Find Out Here!

Have you ever wondered, can foreigners buy land in Bali? Bali is indeed one of the top destinations for international tourists. Not only for vacations, but many people are also interested in investing or even settling down in Bali. However, before deciding to invest, it’s important to understand the rules regarding land ownership in Bali for foreigners.

If you’re also curious about this question, this article will give you a complete explanation of whether foreigners are allowed to buy land in Bali, the requirements that need to be met, and the risks that should be considered before making an investment decision. By reading this article to the end, you’ll have a clearer understanding and be able to make an informed decision if you’re planning to invest in Bali.

TL;DR

• Can Foreigners Buy Land in Bali with Full Ownership?
  Foreigners can only own land in Bali with Hak Pakai (HP) or Hak Guna Bangunan (HGB), which have a time limit, usually between 30 to 50 years.
• What Are the Requirements and Procedures for Foreigners to Buy Land?
  Foreigners must follow strict legal procedures, including using a qualified notary and verifying the legal status of the land through Badan Pertanahan Nasional (BPN).
• What Risks Should Foreigners Know When Buying Land in Bali?
  Foreigners must consider risks like the limitations of land ownership, potential legal disputes, and fluctuations in land prices. It’s recommended to conduct market research and use professional services to ensure smooth and legal transactions.

Can Foreigners Buy Land in Bali?

In general, foreigners are not allowed to buy land in Bali with freehold rights (SHM). Indonesian law limits land ownership for foreigners, and freehold rights (SHM) are only granted to Indonesian citizens (WNI). So, how can a foreigner still own land in Bali?

Even though foreigners can’t fully own land with freehold rights, there are several alternatives that can be considered. Foreigners can own land in Bali through Hak Pakai (HP) or Hak Sewa. With Hak Pakai, foreigners can use the land for a certain period, usually around 30 years with the option to extend. Another option is Hak Sewa, where the land can be leased for a longer period, typically up to 50 years. Both of these rights allow foreigners to enjoy property in Bali without full ownership rights and still use the land or property according to the applicable terms.

With these provisions, foreigners still have the opportunity to invest in Bali and enjoy the benefits offered by the island, albeit in a more limited way compared to Indonesian citizens.

What Are the Requirements and Conditions for Foreigners to Buy Land in Bali?

While foreigners are not allowed to own land with full freehold rights in Bali, there are still options available for them to buy or lease property. Here’s what you need to know if you’re a foreigner interested in investing in Bali:

1. Types of Land Rights Allowed

• Hak Pakai (HP):
  This is the most common option for foreigners. With Hak Pakai, foreigners are allowed to use the land for personal or commercial purposes for a designated period, usually 30 years with an option to extend. So, if you’re planning to live or run a business in Bali, Hak Pakai offers considerable flexibility.
• Hak Sewa (Leasehold):
  Another option is Hak Sewa, which allows foreigners to lease land for a longer term, typically between 25 and 50 years. This is ideal for those who want to own property in Bali without directly buying the land. With a leasehold, you can still enjoy the land or property for an extended period.

2. Through a PMA (Foreign Investment Company)

If you’re planning to invest in commercial property, one option is through a PMA (Penanaman Modal Asing) or Foreign Investment Company. By establishing a PMA in Bali, foreigners can obtain Hak Guna Bangunan (HGB), which allows them to build and manage property on land owned by the company. This gives foreigners access to property without buying land directly, but with the requirement to go through an official company structure.

3. Legal Procedures to Follow

The legal process for buying or leasing land in Bali can’t be done arbitrarily. Foreigners interested in purchasing or leasing property must go through the legal procedures set by the Indonesian government, particularly through Badan Pertanahan Nasional (BPN) and the Ministry of Agrarian and Spatial Planning. This process includes applying for permits and verifying the legal status of the land to be purchased or leased. Therefore, it’s crucial to ensure the land you’re considering has clear and valid legal status.

Read more: Luxury Property Investment in Bali: The Complete Guide for Investors

How Can Foreigners Buy Land in Bali Safely and Legally?

Buying land in Bali isn’t a simple process. To avoid future legal issues, here are some steps you need to follow to ensure that the land purchase process is safe and legal:

1. Check the Land Status Thoroughly

Before making any land purchase, it’s very important to carefully check the status of the land. Make sure the land you want to buy has a valid Hak Guna Bangunan (HGB) or Hak Pakai (HP) certificate, and is registered with BPN. Additionally, verify that the land isn’t involved in any legal disputes or other legal issues. By checking thoroughly, you can make sure the land meets all necessary legal requirements.

2. Use a Competent Notary

The land transaction in Indonesia must be done in the presence of a competent notary. The notary will ensure that all documents and sale agreements are legal and comply with the applicable law. To avoid legal problems, we recommend using property law services from Bali Premium Trip, which provides experienced notaries and legal advisors to ensure every step of the transaction is done safely.

3. Work with a Licensed Property Agent

Finding the right land in Bali can be challenging, especially if you’re not familiar with the local property market. Therefore, it’s highly recommended to work with a licensed and experienced property agent. A professional property agent can help you find land that suits your needs and preferences, and ensure that the transaction goes smoothly.

For a safer investment experience, you can also use the property investment services from Bali Premium Villa, who have in-depth knowledge of the Bali property market and can help you make the right decision.

4. Understand All Associated Costs

In addition to the land price itself, there are several additional costs that you need to consider in the land purchase process in Bali. Some of these include the purchase tax, notary fees, and other administrative costs. The purchase tax can vary depending on the transaction value, and it is usually paid by the buyer.

Notary fees should also be factored in because a qualified notary will ensure all documents and agreements are legally valid. Additionally, there are administrative fees associated with land registration and document processing at BPN.

What Risks Should Foreigners Be Aware of When Buying Land in Bali?

While buying land in Bali can be a profitable investment, there are several risks that should be considered before making a decision. Here are some risks to keep in mind:

• Ownership Limitations
  Foreigners can only own land in Bali with Hak Guna Bangunan (HGB) or Hak Pakai (HP). These rights are not permanent and have time limits, usually between 30 and 50 years. This means that the land must be returned once the rights period ends, and if you wish to sell or transfer ownership, certain procedures must be followed.
• Potential Legal Disputes
  There is a risk that the land you buy may be involved in legal disputes, either with third parties, local residents, or even the government. Make sure the land you intend to buy has clear legal status and is registered with BPN to avoid future legal problems.
• Changing Policies
  Policies regarding land ownership by foreigners in Bali can change over time. The Indonesian government may update regulations on foreign land ownership, which could affect your rights in the future. Therefore, it’s important to keep up with any changes in the policy.
• Fluctuating Land Prices
  Like property markets in other places, land prices in Bali can fluctuate. While land prices generally tend to increase, there’s no guarantee they will always rise. A drop in land prices could affect the value of your investment.

Tips for Foreigners Looking to Buy Land in Bali

If you’re seriously considering buying land in Bali, here are a few steps that can help ensure the process goes smoothly and safely. Given the regulations and procedures involved, here are some tips you should keep in mind:

• Do Thorough Market Research
  Before buying land, do thorough research to understand land prices in various locations in Bali. Choose a location with potential property value growth, especially one close to public facilities or tourist attractions. Also, decide on the purpose of your purchase, whether it’s for investment or personal use, such as for a home or villa.
• Check the Land’s Legality Carefully
  Ensure the land you buy has a valid Hak Guna Bangunan (HGB) or Hak Pakai (HP) certificate and is registered with BPN. Make sure the land is free from legal disputes. Don’t hesitate to check the land status with a notary or lawyer to ensure its legality.
• Use Experienced Professional Services
  To ensure the transaction goes smoothly, use the services of a notary, lawyer, and licensed property agent who have experience with transactions involving foreigners. We recommend using investment services from Bali Premium Villa, who have experience handling property purchases by foreigners. Their professional team will help ensure all documents and agreements are legally valid under Indonesian law.
• Consider Long-Term Lease Options
  If buying land seems complicated or risky, consider long-term lease options. Many landowners in Bali offer leases ranging from 25 to 50 years. This gives you the opportunity to enjoy the property without direct ownership of the land, reducing potential risks.

Read more: Property Ownership Regulations in Bali: Find Out Here!

Start Investing in Bali with Bali Premium Villa!

For foreigners interested in investing in Bali, you might be wondering, can foreigners buy land in Bali? Legally, foreigners cannot purchase land in Bali with full freehold rights. However, there are several options available, such as Hak Pakai or Hak Sewa for a limited period, or through setting up a PMA (Penanaman Modal Asing) to obtain Hak Guna Bangunan (HGB). By understanding the rules, foreigners can still invest in Bali property legally and profitably.

To make your investment process smoother, we recommend using Bali Premium Villa’s property investment services. Our professional team is experienced in helping foreigners find the best properties in Bali, while also providing clear guidance on ownership regulations and legal procedures. With our services, you can ensure your investment is safe and compliant with the law.

So, if you’re ready to start investing in Bali, don’t hesitate to contact Bali Premium Villa. Our team is ready to help you find the best investment opportunities in Bali and ensure your investment journey goes smoothly!