If you’ve fallen in love with Bali and are dreaming of owning a piece of paradise, you’re not alone. The idea of living in or investing in a villa near the beach or in the lush jungle has crossed the minds of many expats. But here’s the thing — owning property in Bali as a foreigner isn’t as straightforward as you might hope.

So, can expats actually buy property in Bali? The answer is: not directly, but there are legal pathways that make it possible to own or control property in the right way.

Let’s break it down clearly.

Why Foreigners Can’t Legally Own Freehold Land

Indonesia’s land laws are quite protective when it comes to foreign ownership. As a non-Indonesian, you’re not allowed to hold freehold title (Hak Milik) — this is reserved exclusively for Indonesian citizens.

However, this doesn’t mean you’re out of options. In fact, there are several legal structures that foreigners can use to lease, use, or invest in property — and many of them are both safe and commonly used.

Legal Ways Expats Can Control or Use Property in Bali

1. Leasehold (Hak Sewa)

This is by far the most common method among foreign buyers.

With leasehold, you sign a long-term rental contract — often 25 or 30 years — with the option to extend. You don’t own the land, but you do have full legal rights to use or sublease the property during the lease period.

✅ Ideal for personal use or holiday rentals
✅ Simple, transparent, and widely used
❗ You’ll need to renegotiate when the lease ends

2. Right to Use (Hak Pakai)

If you’re a foreigner with a temporary or permanent stay permit (KITAS/KITAP), you’re eligible for Hak Pakai.

This title allows you to legally use a residential property — typically starting with 30 years, extendable up to 80 years total. It’s issued in your name and registered with the land office.

✅ Fully legal and recognized by the government
✅ Suitable for residential homes
❗ Only available if you have a valid visa and not intended for commercial use

3. Through a Foreign-Owned Company (PT PMA)

Thinking of running a business or investing in rental property? You can register a PT PMA, which is a foreign investment company legally recognized in Indonesia.

A PT PMA can own property under a Right to Build (Hak Guna Bangunan), which is great for villas, commercial spaces, or business operations.

✅ You control the property via your company
✅ Legal structure with clear documentation
❗ Requires setup fees, reporting, and regular compliance

4. Nominee Arrangement (Use with Extreme Caution)

Some foreigners try to bypass the rules by placing property under the name of an Indonesian citizen (a “nominee”). While this may seem like a shortcut, it comes with serious legal risks.

Even with private agreements, you don’t hold any legal ownership — and if the nominee decides to walk away or disputes the agreement, you may have no protection.

🚫 We strongly advise avoiding this route unless fully advised by a legal expert

So, What’s the Best Route for You?

It depends on your situation:

• Living in Bali long-term? → Leasehold or Hak Pakai is often the safest bet

   

• Running a business or managing rentals? → PT PMA could be the right structure

   

• Want peace of mind? → Always go through a trusted notary and legal advisor

   

There’s no one-size-fits-all, and the right approach depends on your visa status, goals, and whether the property is for personal use or investment.

What You Need to Know Before You Start

Here’s what we always tell our clients:

✔️ Don’t rush — learn the system before committing
✔️ Avoid shortcuts that involve nominee arrangements without full protection
✔️ Work with experienced professionals who understand both the law and the local market

At ONBALIVIN, we’re here to simplify the process for you — connecting you with trustworthy legal partners and guiding you to the options that actually make sense for your lifestyle or investment goals.

Got Questions?

Thinking about buying a villa or want to explore lease options that are 100% legal for expats?

📩 Contact us anytime or browse our listings to see what’s possible.
Or, if you want a quick guide to all your options, just Contact us: “Property Guide” — and we’ll ready to help your way.