Yes, a foreigner can inherit property in Bali, but what happens after the inheritance depends on the land title on the certificate. In Indonesia, inheritance does not automatically remove foreign ownership restrictions, so the type of title matters.
If the property is held under Hak Milik (Right of Ownership), that title is reserved for Indonesian citizens under Indonesian law. In practice, this means the title cannot simply remain in a foreign heir’s name in the same way it can for an Indonesian heir.
If the property is leasehold, the situation is usually more straightforward because what is being inherited is a lease agreement, not ownership of the land. In that case, the lease contract terms, especially any inheritance or assignment clauses, are what determine whether and how the lease can be transferred to an heir.
In short, the title or contract structure is what defines how an inherited property can be handled, so confirming the exact title type early is the most important first step.
If the certificate says Hak Milik, the one year rule matters
Under Indonesian Agrarian Law, there are two key principles to remember when the land certificate says Right of Ownership (Hak Milik):
First, Hak Milik can be inherited, a hereditary title and can pass through inheritance. However, it is also the most restricted title: it may only be owned and held by Indonesian citizens (and, in limited cases, certain legal entities that meet specific requirements and have been formally designated by the government).
Second, if a foreign national acquires Hak Milik through inheritance or as a result of marital property mixing, the law applies a clear timeline: the foreign heir must transfer or relinquish that right within one year. If this is not done within the required period, the right is treated as void and the land may revert to the State.
So, in practical terms, the one-year period is the window to take one of the lawful pathways, such as:
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Transfer or sell the rights to an Indonesian citizen or a permitted legal entity; or
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Convert the rights into another form of land right that is legally permitted to be held by foreign nationals or entities (where eligible under Indonesian land and investment regulations); or
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Adjust the ownership structure in a way that complies with applicable laws and regulations.
If the inherited certificate shows Hak Milik, the most helpful first step is to confirm the inheritance scenario and title status under Indonesian law and ensure the process is handled properly through the prevailing legal channels in Indonesia.
With Hak Pakai, inheritance may be possible under conditions
Hak Pakai (Right of Use) is often viewed as one of the more accessible land rights for foreign nationals in residential contexts, as long as the eligibility conditions are met.
A few practical points typically apply:
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Residency status matters. Foreign nationals generally need a valid residence permit such as a KITAS or KITAP to hold Hak Pakai.
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It has a defined timeline. Hak Pakai follows a structured validity and extension framework, commonly described as up to 30 years for the initial grant, extendable for 20 years, and renewable for a further 30 years, subject to the applicable rules and approvals.
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Inheritance is possible, but it follows the remaining term. Hak Pakai may pass to heirs, subject to the heir meeting the eligibility requirements under prevailing land regulations. In practice, the heir generally continues the remaining term that exists at the time of inheritance, rather than receiving a fresh new 30-year period from the beginning.
If the inherited title is already one that foreign nationals can legally hold, and the eligibility requirements are satisfied, the pathway is usually more straightforward than a Hak Milik inheritance scenario.
If it’s leasehold (Hak Sewa), inheritance depends on the contract
Many Bali villas marketed as “ownership” are, in practice, Hak Sewa (leasehold) arrangements. With Hak Sewa, the lease agreement is what sets the rules: how long the lease runs, whether alterations or renovations are allowed, and whether subleasing is permitted. For peace of mind, it’s generally best when the lease is properly documented through a licensed PPAT in a notarial deed (rather than an informal, private agreement), and handled with the appropriate registration steps.
For leasehold inheritances, the practical questions to clarify are:
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Does the lease allow assignment to heirs / succession?
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Is landlord consent required?
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What happens at extension or renewal?
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Is the agreement properly documented and handled through the appropriate channels?
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What is the status of lease payments?
Lease payments matter because incomplete payments can complicate transfer to another party. In an inheritance context, transfer may still be permissible depending on the agreement and process, but it’s important to remember that an heir typically inherits not only the rights under the lease, but also the obligations stated in the lease agreement.
There is no inheritance for HGB under PMA (corporation doesn’t die, it dissolves)
When HGB (Hak Guna Bangunan / Right to Build) is held through a PT PMA (a foreign investment limited liability company), it sits under the company as a legal entity rather than under an individual’s name. Because of that, it generally isn’t “inherited” as a personal land title in the way individual ownership rights are. Instead, any transfer or allocation of the HGB is handled through the company structure, and in situations such as a company dissolution, the HGB is treated as a company asset and managed accordingly under the applicable corporate process.
The paperwork most inheritance rely on
From a legal documentation perspective, the key proof points are as follows:
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Certificate-based titles (Hak Milik / HGB / Hak Pakai) are recorded through the National Land Agency (BPN)
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Hak Sewa relies on a lease agreement typically made and/or recorded by a government-licensed notary.
Practically, the sequence is: confirm the title (in cases involving Hak Milik) or review the relevant provisions of the lease agreement, complete and collect the relevant inheritance documents, then follow the required due process for the applicable inheritance scenario or PT PMA dissolution through the appropriate Indonesian legal channels.
Tiny definitions for your notes!
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Hak Milik (Freehold / Right to Own): The strongest and most complete land title is restricted to Indonesian citizens.
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Hak Pakai (Right to Use): A land right that may be held by foreign nationals individually, subject to statutory conditions.
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Hak Sewa (Leasehold): A contractual right to occupy for a fixed term; the agreement governs extension, alteration, and subleasing.
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HGB (Hak Guna Bangunan / Right to Build): Only attainable by foreign individuals by establishing PT PMA; treated as a corporate asset rather than personal title.
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BPN: Indonesia’s Land Office where certificates/titles are recorded.
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PPAT / Notary: The licensed channel referenced for lease notarization/registration and transaction formality.
FAQ
Can a foreigner inherit property in Bali from a spouse?
A foreign spouse can be an heir, but what can be held depends on the title. In the event of inheritance, the foreign spouse is granted 1 (one) year to transfer the rights or the seized by the State.
Can a foreign child inherit land in Bali?
A foreign child who is not an Indonesian citizen may be an heir under inheritance law. However, nationality remains decisive for land-holding eligibility, and the foreign ownership rules apply as explained above. Where the heir is a minor, any required transfer must be carried out through a lawful guardian in accordance with Indonesian civil law. If the title is Hak Pakai or leasehold, retention depends on statutory eligibility and the terms of the underlying agreement.
Can a foreigner inherit a leasehold villa in Bali?
Generally, yes. What is inherited is the contractual lease right, not land ownership. The lease agreement governs succession, assignment to heirs, landlord consent, and the remaining term.
If a property is held under PT PMA (HGB), is it inherited the same way?
HGB (Hak Guna Bangunan / Right to Build) held through a PT PMA is generally treated as a company asset, not a personal asset inherited in an individual’s name. In situations such as dissolution of the PT PMA, the allocation or handling of the HGB follows the applicable liquidation mechanism and corporate asset management procedures under prevailing laws and regulations, as outlined above.
In conclusion?
A foreigner may inherit property interests in Bali. However, inheritance does not expand land ownership rights under Indonesian law. The legal outcome depends entirely on the title recorded on the certificate, or the structure through which the property is held.
> If the title is Hak Milik, it cannot be held by a foreign national. The right must be transferred within one year; otherwise, it becomes void by operation of law and reverts to the State.
> If the title is Hak Pakai, it may be retained provided the heir satisfies the applicable statutory eligibility requirements.
> If the property is held under Hak Sewa, succession depends entirely on the terms of the lease agreement.
> If the property is held through a PT PMA under HGB, succession is typically handled through company shareholding mechanisms rather than a direct transfer of the land title.
In every case, the first step is to verify the registered title. The title determines the appropriate legal pathway.
