
Purchasing land in Bali can be an exciting and rewarding experience, but it can also come with its challenges and risks. To help you make the most informed decision and avoid costly mistakes, here are five common pitfalls to be mindful of when purchasing land in Bali.
When purchasing a property, road access can be fully or partially private, it is important to ensure its status before deciding. Properties that are priced significantly lower than comparable properties may be lacking road access. This can lead to costly expenses, such as purchasing a portion of a neighbouring property to gain access to the land.
If you’re inspecting land that has no road access to it, then you should ensure that you have adequate space to build your own road or you might have to enter an arrangement with your neighbor to get shared access to an existing road. Consulting with a local real estate agent can help ensure that you are aware of any potential issues and can take the necessary steps to secure access to your property. Our team of consultants is available to assist with any concerns you may have regarding road access and other property-related issues in Bali.
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It's important to be aware of the tax rules when it comes to Bali real estate transactions. If you purchase freehold land, then you must pay land and building acquisition tax which amounts to 5% of the purchase price. You can read more about the tax and other necessary info about Bali property regulation here.
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All land in Bali is subject to zoning law which regulates the kind of activities and development that you can do on it. The zones that you will commonly encounter are Pemukiman (residential), Pariwisata (touristic), Pemerintah (governmental), and Pertanian (agriculture, commonly referred to as green zone). A reminder you might want to note, it is not possible to obtain building permits for land located in a green zone.
Keep in mind that the zoning of a given area can change from time to time, and the best way to check it is to contact the local government office of the area.
To ensure that your intended activities align with the zoning regulations, it is recommended to seek the guidance of experts. At Bali Home Immo, we can assist and introduce a legal advisor that will help navigate the zoning regulations in Bali and advise you on the appropriateness of the zoning for your planned activities.
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When it comes to purchasing land in Bali, you want to make sure you have a reliable and experienced real estate partner on your side. This person should be knowledgeable about the local market trend and be able to carry out proper research on your behalf to make sure you're making a profitable investment. A good real estate partner will also be able to negotiate on your behalf, with real-case experience in the same location as your intended property, all of this to make sure you get the best deal possible.
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Anything legal-related can easily become a headache without the right partner. That is why choosing a legal partner with experience is the most important for having crystal clear due diligence on your land. This includes drawing up contracts, reviewing title deeds, and making sure the transaction complies with all relevant laws and regulations, as we have mentioned in the previous list.
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Avoiding these five common mistakes will ensure your experience purchasing land in Bali is smooth and stress-free. As Canggu's first real estate agent, our team of experts has been helping property seekers for over 13 years find their ideal home and investment in Bali. We invite you to schedule a consultation with us for expert guidance and support.
Disclaimer: The information contained in this content is intended for general informational purposes only and should not be considered legal advice. Readers are strongly advised to seek professional legal counsel for any specific questions or concerns regarding the purchase of land in Bali, including but not limited to tax and zoning regulations. The author and Bali Home Immo shall not be held responsible for any consequences or damages arising from the reliance on the information provided in this content
Avoid these 5 common mistakes when purchasing land in Bali
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Established in 2009, Bali Home Immo is the first real estate agency in Canggu with more than 7000 Bali properties listed in its database. Bali Home Immo (PT. Bali Properti Kontruksi) is a licensed property agency (SIUP-P4 certified) located in Bali, Indonesia and have been successfully operating as a trustworthy and reputable real estate agency with more than 13 years of experience. Long-standing partnerships and a committed, dedicated team are the driving force behind the work that takes place every day at Bali Home Immo.
As a member of the Real Estate Broker Association of Indonesia (AREBI), Bali Home Immo Property offers luxury real estate across the region to a local and international client base. Catering to a wide range of property requests, the team will ensure they can find a property, land or residential listing, to match each client’s personal requirements.
We have curated a wide selection of properties ranging from the land for sale, villas for sale and rent, as well as commercial space rental in Bali's most in-demand areas including Canggu, Seminyak, Pererenan, Umalas, and Uluwatu. Not only Bali, but our connection also reaches other popular destinations in Indonesia including Gili Islands, Lombok, Labuan Bajo, and more.
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