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Bali: ownership, leasehold and visas for foreign buyers

Foreign buyers cannot own freehold land in Bali. This guide sets out the leasehold and company routes, how zoning and permits affect a villa, which visas fit a long stay, and the taxes and checks that come with a purchase.

Reviewed 25 October 2026

In short

Ownership forms for foreigners

Indonesian law reserves full freehold (Hak Milik) for Indonesian citizens. Foreigners who are domiciled in Indonesia can hold a right to use (Hak Pakai), which can be granted on state land or on other land by deed, and a right to lease land for a building (Hak Sewa untuk Bangunan). Under PP 18/2021, which replaced the earlier PP 40/1996 and PP 103/2015, a foreigner who holds valid immigration documents may own a residential house on Hak Pakai land, subject to minimum price, minimum land area and unit-number limits set by regulation.

Strata apartments can be owned by foreigners with the required permit, when the building stands on HGB or Hak Pakai land. Because the eligibility rules are tied to residence status and the limits are set by regulation, check them on the day of purchase. A title is only as good as the land office record behind it, so the title check described below is essential.

Leasehold in practice

A leasehold gives the buyer the right to use a villa and its land for a fixed period under a written agreement with the landowner, normally signed before a notary. Rent or the lump-sum price is paid to the landowner. The Basic Agrarian Law allows foreigners domiciled in Indonesia to hold this right for a building, but it sets no fixed term. In practice, 25 or 30 years is common, often written as 30 plus 25 years with an option to extend.

The 80-year figure sometimes quoted for leaseholds is not a leasehold rule. It is the statutory maximum for HGB and Hak Pakai on state land: an initial period, an extension of up to 20 years and a renewal of up to 30 years. A leasehold is usually contractual rather than a land certificate, so its value rests on the lessor's own title and the deed. Before paying, confirm with a notary who holds the lessor's right, whether the land is free of encumbrances, the permitted use, the price and payment schedule, the extension price and procedure, the right to sell or pass the lease on to heirs, and what happens if the land is later re-zoned.

The company route: PT PMA and HGB

A foreign-owned company (PT PMA) can hold a right to build (HGB) over land and the building on it, and this route gives a longer and more transferable right. Under BKPM Regulation No. 5 of 2025, which took effect on 2 October 2025, a new PT PMA needs paid-up capital of at least IDR 2,500,000,000. Its total investment plan must exceed IDR 10,000,000,000 for each business code and project location, excluding land and buildings. Secondary guides describe a minimum of two shareholders; confirm this with the registrar.

The company must carry on a business that matches the intended use, and it has ongoing duties: annual accounts, tax returns and the investment reporting required by the registrar. A PT PMA is not automatically eligible for every business code, so a villa that will be rented out needs the right licence (see zoning and permits). A sale of the company or a change of control can also affect the investment and should be checked by a notary and an adviser before signing.

Zoning, permits and short-term rental

Each parcel is classed under the district spatial plan (RTRW) and, where it applies, the detailed plan (RDTR). The colours commonly used in Bali are yellow for residential, pink for tourism, red for commercial, orange for mixed use and green for agriculture, where no building is allowed. Pink is a market label rather than a legal category, so the official designation of the parcel is what counts. Check the parcel on the official ATR/BPN spatial map (GISTARU) and get written confirmation from a notary or planning consultant. Building on green-zone land is prohibited, and authorities can seal such buildings.

Zoning, building approval and the occupancy certificate are separate checks. The building permit (PBG, formerly IMB) is applied for through the OSS online system. The certificate of building function (SLF) confirms that the finished building matches the approved plan, and it is generally needed before the villa is used or rented. A short-term rental needs its own licence. The homestay (pondok wisata) permit under Permenparekraf 4/2021 covers small properties of up to five guest rooms; larger villas need a hotel or villa licence. One guide says the homestay permit is restricted to Indonesian citizens and locally owned companies, so a foreign owner may need a licensed local partner. Confirm this with the licensing office before you rely on it.

Visas and residence

Owning property in Indonesia does not by itself give the right to live there. The options below are the ones reviewed for this guide. Rules and amounts change, so confirm each one with immigration before you commit.

Second Home Visa (E33). Issued for 5 or 10 years under a 2022 circular. The applicant needs a personal deposit of at least IDR 2,000,000,000 in an Indonesian state-owned bank, which cannot be withdrawn while the visa is active. The funds must be shown within 90 days of arrival, and a state revenue charge of IDR 3,000,000 applies. The passport must be valid for at least 36 months. Work is not allowed on this visa. The official summaries reviewed do not list property ownership as an alternative to the deposit, so do not assume one.

Indonesian Golden Visa. Under Permenkumham 22/2023, as amended by Permenkumham 11/2024, an individual investing in public-company shares, government bonds or mutual funds, without setting up a company, qualifies for a 5-year stay at USD 350,000 or a 10-year stay at USD 700,000. Company routes carry higher amounts. The official summary reviewed does not list the purchase of property as a qualifying investment, so buying a villa does not qualify. Agency claims of a property route are unconfirmed.

Investor KITAS (E28A). For a foreign shareholder who runs a PT PMA as director or commissioner. Secondary guides put the personal shareholding at IDR 10,000,000,000 or more, held in the applicant's own name and not through a nominee or holding company. One guide gives a lower figure, so the amount must be confirmed before the company is structured. The permit runs for one to two years, can be renewed, and can later be converted to a permanent stay (KITAP) of five years. Stays of more than 183 days in a year can create tax residence in Indonesia.

D12 pre-investment visa. A multiple-entry visa for investors who are preparing a business, viewing property or holding meetings, issued for one or two years. Each stay can be up to 180 days. It needs an invitation from an Indonesian company or government body, a passport valid for at least six months and proof of funds, and the first entry must take place within 90 days of issue. It does not allow work or income-generating activity and is not a route to permanent residence. Sources differ on whether a second 180-day stay can be obtained, so check the current terms before relying on it.

Tourist visas. The e-VOA costs about IDR 500,000 and allows a 30-day stay, with one 30-day extension, for 60 days in total. Extension routes are reported differently by different sources, so check the official portal before travelling. The Bali tourist levy of IDR 150,000 is paid once per international visitor through the official LoveBali portal, which asks for the arrival date and issues a voucher. The All Indonesia Arrival Card is filed online ahead of arrival, typically within three days before the flight.

Taxes and costs

Leasehold purchase. Most of the cost is the price itself, paid to the lessor. Value added tax (PPN) applies when a VAT-registered developer sells a new home. The effective rate on ordinary goods is 11% from 2025, and the statutory 12% rate applies to luxury goods, including luxury housing. Press reports tie luxury housing to a price of about IDR 30,000,000,000 or more, under criteria in PP 61/2020. Confirm the position for 2026 with the developer and the tax office. Notary and deed fees are negotiated and should be quoted in writing. Because a leasehold is generally contractual, BPHTB is not normally charged on the lease itself, but confirm this with the notary. A lump-sum payment from a tenant may be treated as rent, which for a resident individual is taxed at a 10% final rate under PP 34/2017.

Company route (HGB through PT PMA). BPHTB, the acquisition tax paid by the buyer, is capped at 5% by Article 47 of Law 1/2022. The actual rate is set by each regency, and the base is the higher of the price or the tax value, less a threshold. The seller pays a final income tax on the transfer under PP 34/2016: 2.5% in general and 1% for a simple house or flat. VAT and notary fees apply as above, and the company must keep its accounts and file its taxes every year.

Costs while you own. Land and building tax (PBB-P2) is charged each year on the NJOP valuation, which is the government's assessed value and is usually below the market price. The national cap is 0.5%. The taxable base is 20% to 100% of NJOP after a threshold of at least IDR 10,000,000, and the actual rate is set by the regional regulation. Rent from a villa is subject to income tax: a 10% final tax for resident individuals under PP 34/2017. The 20% rate sometimes quoted for non-residents is not confirmed by the sources reviewed, so check it with a tax adviser.

Payments and currency. Domestic property transactions are priced and paid in rupiah. Prices quoted in US dollars are converted at the rate on the day of payment, so the contract should state the rate, the date and who bears any exchange cost. Ask for the amount in rupiah in writing before you pay.

How a purchase usually goes

Official sources

This page is general information, not legal, tax or immigration advice. Foreign ownership rules, visa conditions and tax rates are set by the Indonesian authorities and change. As at the date of review, confirm with the immigration office, the land office (ATR/BPN), the tax office and a licensed Indonesian notary before you pay a deposit.

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