Yes, foreigners can buy property in Bali, but never as freehold. Indonesian law reserves freehold title (Hak Milik) for Indonesian citizens, so foreign buyers use one of four legal routes: a leasehold (Hak Sewa), a right of use (Hak Pakai), a right to build (HGB) held through a foreign-owned company (PT PMA), or strata title for an apartment unit.
The confusion comes from the market, not the law. Listings still say “freehold” or “own”, forum threads contradict each other, and some sellers still offer nominee deals that look like ownership but are not. This guide separates what is legal from what only looks legal.
You will find a side-by-side table of the four routes, who qualifies for each, how long each lasts, what a purchase costs in tax, and which route fits a home versus a commercial investment.
Foreigners cannot hold Hak Milik, the only freehold land title in Indonesia. Article 21 of the Basic Agrarian Law (UUPA) limits Hak Milik to Indonesian citizens, and this applies in Bali exactly as it does in Jakarta.
The workaround most often sold to foreigners is a nominee arrangement: an Indonesian citizen holds the certificate while side agreements give the foreigner control. Article 26(2) of the UUPA makes any direct or indirect transfer of Hak Milik to a foreigner void by law, and the land falls to the state. Indonesian courts have applied this rule, so a nominee structure gives a foreign buyer paperwork, not protection.
The same principle runs through hotel investment. Our guide to owning a hotel in Bali through a PT PMA explains why nominee structures are the arrangement to avoid at commercial scale too.
Each route gives a different right over land or a building. The right you hold decides what you can do with the property, how long you keep it, and whether you can sell it.
A leasehold gives you the right to use land or a building for an agreed period in exchange for rent paid to the owner. Article 44 of the UUPA recognises the right to lease land for a building, and in Bali the term is set in a notarised lease agreement.
Leases of 25 to 30 years are common, with an extension option written into the contract. The quality of a leasehold depends on that contract: the renewal price, what happens to the buildings at the end, and whether you can sublease or transfer the lease. A leasehold is not issued as a land certificate by the National Land Agency (BPN), so the lessor’s own title must be checked before you pay.
Hak Pakai lets a foreigner hold a residential house in their own name. Under Article 69 of Government Regulation (PP) No. 18 of 2021, a foreigner who holds valid immigration documents can own a home on Hak Pakai land, and the right can pass to heirs who also hold valid documents. Many guides still say you need a KITAS or KITAP; the regulation refers to valid immigration documents more broadly, so confirm with your notary which documents the land office accepts for your case.
Hak Pakai on state land runs for up to 30 years, can be extended by up to 20 years, and renewed for up to 30 years (PP 18/2021, Article 52). Three limits apply to a landed house: one plot per person or family, a maximum of 2,000 m² without ministerial approval, and a minimum price. For Bali, Ministerial Decree No. 1241/SK-HK.02/IX/2022 sets that minimum at IDR 5 billion for a landed house.
Hak Pakai is for living in, not for running a rental business. Our comparison of Hak Pakai vs HGB covers where the line sits.
HGB (Hak Guna Bangunan, the right to build) lets a company construct and own buildings on land it does not own as freehold. A PT PMA, an Indonesian company with foreign shareholders, can hold HGB, which makes this the standard route for commercial property such as hotels and resorts.
HGB runs for up to 30 years, extendable by 20 years and renewable for 30 years, for a potential 80 years in total (PP 18/2021, Article 37). The company, not the individual investor, holds the title, so the company must stay compliant with its licences and reporting. Our explainer on how an HGB title works goes through what investors should check before relying on one.
Strata title gives you ownership of an apartment unit (Hak Milik atas Satuan Rumah Susun) but not the land under the building. PP 18/2021 (Article 67) allows foreigners to own such units, and the building can stand on HGB or Hak Pakai land.
In Bali, the minimum price for a foreigner buying an apartment unit is IDR 2 billion under the same 2022 ministerial decree. Strata units are less common in Bali than in Jakarta, so supply is limited.
Your purpose decides the route. Living in Bali points to Hak Pakai or a leasehold; earning income from tourism points to HGB under a PT PMA.
| Route | Who qualifies | Use | Maximum term | Issued by BPN | Best for |
|---|---|---|---|---|---|
| Leasehold (Hak Sewa) | Anyone | Agreed in the lease | Set by contract, commonly 25-30 years | No, notarised agreement | Personal use, short horizons |
| Hak Pakai | Foreigners with valid immigration documents | Residential | 30 + 20 + 30 years | Yes | A home in your own name |
| HGB via PT PMA | A foreign-owned Indonesian company | Commercial | 30 + 20 + 30 years | Yes | Hotels, resorts, rental businesses |
| Strata title | Foreigners with valid immigration documents | Residential unit | Follows the land right under the building | Yes | An apartment |
If you plan to buy a villa in Bali and rent it to tourists, check the licence before the title. Renting accommodation commercially needs a business licence, and a foreign individual holding Hak Pakai does not qualify for one in their own name.
A foreigner buying a house in Bali under Hak Pakai needs five things in place:
Before any of this, run a full check of the title, the seller and the permits. Our due diligence checklist for Bali property lists what to verify and where.
Transaction costs in Bali are split between buyer and seller. The buyer’s duty is capped at 5% under Article 47 of Law No. 1 of 2022, and the seller’s final income tax is 2.5% under PP No. 34 of 2016. The figures below apply to a standard sale and should be confirmed with your PPAT for your specific deal.
| Cost | Paid by | Rate | Legal basis |
|---|---|---|---|
| Land and building acquisition duty (BPHTB) | Buyer | Up to 5% of the transaction value, after a regional tax-free allowance | Law No. 1 of 2022, Article 47 |
| Final income tax on the transfer (PPh) | Seller | 2.5% of the transfer value | PP No. 34 of 2016 |
| PPAT fee | Usually buyer | Up to 1% of the transaction value | Government regulation on PPAT fees |
| Annual land and building tax (PBB) | Owner | Set by the regency each year | Regional regulation |
Legal due diligence and contract review are extra. One Bali buying-cost guide updated in June 2026 puts a standard report at roughly IDR 5 million to 20 million, with company structures costing more.
If your goal is income rather than a home, the legal question changes. You do not need to own a villa yourself; you need a share in a commercial asset that already sits on the correct title and zoning.
That is how CROSS Bali Uluwatu, the hotel project of Cube Group Bali, is set up. The 123-key upper-upscale hotel in Pecatu is held under a PT PMA with HGB title, sits in an official tourism zone, and has a valid building permit, as listed on the CROSS Bali Uluwatu project page. An investor joins a structure that has already passed the legal steps described above, rather than building a PT PMA alone. The different hotel ownership structures explain what you actually hold in that case: shares in the company, not a unit.
Foreigners can buy property in Bali through four legal routes, and none of them is freehold. Choose by purpose: a leasehold or Hak Pakai for a home, HGB under a PT PMA for commercial returns, strata title for an apartment. In every case, verify the title through a PPAT and the land office before money moves.
For investors who want returns rather than a residence, CROSS Bali Uluwatu offers hotel investment in Bali through a structure that already holds HGB under a PT PMA. You can review the parameters and request the investor deck on the hotel investment in Bali page.
No. Foreigners cannot hold Hak Milik, the freehold land title. They can hold a leasehold, Hak Pakai for a residence, or HGB through a PT PMA.
No. Any arrangement that transfers Hak Milik to a foreigner, directly or through a nominee, is void under Article 26(2) of the Basic Agrarian Law.
No. Buying property does not create a residence permit. Hak Pakai works the other way round: you need valid immigration documents to hold it.
It is difficult. Few Indonesian banks lend to foreign individuals, and those that do apply strict conditions, so most foreign buyers pay in cash or finance at home.
No. A nominee deal hides a transfer of Hak Milik to a foreigner, which the law voids. The foreign party has no enforceable claim to the land.
