
When you see adverts of Bali villas for sale that are clearly targeted to foreigners, have you ever wondered if foreigners can actually buy those villas? How do you even buy a villa as a foreigner?
These kinds of questions are often asked but you will have a hard time trying to get concise answers on the internet, and weโre here to simplify things for you. Letโs take a look at the 3 frequently asked questions on buying villas in Bali.
ย
Can foreigners buy a villa in Bali?
Yes, foreigners have the legal right to buy a leasehold property under their own name which is referred to as Hak Sewa. With this right, foreigners can own a villa in Bali for up to 30 years and they may extend the lease for 20 more years. For those who donโt know, villas for sale leasehold essentially means that you will rent the property for a long term and you may renew the lease after it expires or the villa will be returned to the land owner.ย
If you own a foreign investment company, you can acquire Bali villas for sale freehold under your companyโs name using what is referred to as Hak Guna Bangunan (HGB) title. HGB offers better protection and flexibility compared to Hak Sewa, but it is meant for commercial purposes and you certainly wonโt need it if youโre buying a villa in Bali for private use.ย
Also read: How to Acquire a Property using a PT PMA
How to buy a villa in Bali?
First you have to take your time and inspect the properties that youโre interested in, then make an offer and negotiate with the owner. It is very important to discuss the possibility of extension, the extension price, and the payment due date for the extension at this point. Typically, the extension price is set in accordance with the market price at the time of the extension payment (which could be at any time during the lease period, depending on the negotiation) or as defined by 3 different notaries registered in the same area as the property.ย
There are a few ways to negotiate the extension, but the safest option is to have the extension price and payment due date defined and written on the contract. Once youโve reached an agreement with the owner, proceed to the due diligence process with a local notary and make your payment. Keep in mind that buyers are responsible to pay for the notary fee and sellers are legally responsible to pay the selling tax, but nevertheless the seller may request to share the tax payment and itโs part of the negotiation. After everything is set and the documents are signed, you can enjoy your new home.
Buying a villa in Bali without experienced help can be confusing, so consider hiring a trustworthy real estate agent for a smooth and secure transaction. Villas listed by professional agents are screened before they are marketed to verify the propertyโs ownership and condition. Moreover, professional agents can recommend a credible notary for the due diligence and help you resell the property in the future. Avoid working with freelance agents at all costs as many of them arenโt certified and pose serious risks to your investment.
Also read: How to Start an Airbnb Rental in Bali as a Foreigner
Can foreigners own property with a Freehold title?
The law has made it very clear that only Indonesian citizens have the right to own freehold land, hence why many foreigners use the controversial nominee arrangements to circumvent this. Foreigners are allowed to own freehold condos with a strata title in Indonesia, but the title only applies to units within an apartment/condo building and doesnโt apply to Bali villas.
Do not hesitate to contact us if youโd like to know more about buying a villa in Bali or other real estate related topics. In the meantime, feel free to browse our collection of villas for sale leasehold in Canggu and other amazing locations if youโre searching for the perfect Bali villa to buy.
Disclaimer: The content of this publication is provided as general information only and does not constitute legal, financial, tax, or other professional advice from Bali Home Immo. Some of the information provided on this publication is obtained from a third-party source and we do not guarantee that the content of this publication is accurate, complete or up-to-date.
How can foreigners buy property in Bali?
Table of ContentTopic Categories
Topic Tags
Subscribe to our newsletter
Keep updated to our news and articles
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 clientโs 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.
We also provide professional marketing services that will showcase the best of your Bali properties to more than +160k social media followers and maximise the potential to find buyers looking at villas for sale in Bali. With a thorough knowledge of the Bali property market inside-out, we deliver the most professional and data-driven valuation of your property at the most competitive price for your Bali properties.
Our expertise in the local market and extensive network affiliated with 93 local and international partners including Goplaceit.com, Rumah123, Kangaloo, Luxury Estate, and many more will also help you bring global exposure to your real estate investment and find your dream Bali property. Looking to buy villas for sale in Bali? Check out our online catalogue of Bali real estate and follow us on social media for updates.
Please fill this form and our listing agents will contact you to visit your property and/or give you a price valuation