Thinking of Buying a Property in Bali? Read This First

Bali’s beauty has long captivated tourists from around the world. But beyond its enchanting beaches, serene rice paddies, and vibrant culture, Bali has also become a hot spot for property investment. From villas and houses to guesthouses and empty land, Bali real estate attracts buyers who want to live, rent out, or invest on the Island of the Gods.

If you’ve landed on this page, chances are you’re considering buying property in Bali. Here’s your essential guide before you make the leap.

1. Understand Property Ownership Rules for Foreigners

There are a few legal structures that allow foreigners to own or use property in Bali:

Right to Use (Hak Pakai)

• You can use property on state-owned land or land owned by an Indonesian citizen that has been transferred to the state.
• Valid for 30 years, extendable for 20 years and then another 30 years (up to 80 years total), depending on regulations.

Requirements:

• Must hold a KITAS or KITAP (temporary/permanent residence permit)
• Must be used for personal residence (not for business)
• One property only under your personal name

PT PMA (Foreign-Owned Company)

A PT PMA is a legal entity in Indonesia that allows foreign ownership. Through this structure, you can acquire property under Right to Build (HGB) status.

Advantages:

• Legal property ownership and business operations
• Valid for up to 80 years (through extensions)
• Ideal for those planning to rent out or develop property

To set up a PT PMA, you must actively run a real business (not just on paper), go through proper legal registration, and regularly report taxes. It’s highly recommended to work with a trusted notary or legal consultant who understands PT PMA regulations. Avoid using a nominee agreement (putting property under someone else’s name), as it’s risky and legally grey.

You can connect with a trusted Bali property agent through @onbalivin on Instagram.

2. Choose the Right Location

Bali offers a wide variety of environments — find one that aligns with your lifestyle or rental goals:

• Canggu: Trendy, social, and digital-nomad-friendly
• Ubud: Artistic, spiritual, and surrounded by nature
• Seminyak: Stylish, lively, and great for nightlife
• Uluwatu/Jimbaran: Scenic cliffs and luxury vibes

3. Define Your Purpose

Your purpose for buying property in Bali will shape every decision that follows. If you’re still exploring whether living in Bali is for you, check out our article Moving to Bali: 5 Essential Tips for Beginners.

For Personal Use

If you’re planning to live in Bali full-time or long-term, prioritize:

• Proximity to daily needs (markets, hospitals, schools, coworking spaces, gyms)
• A peaceful environment
• Easy maintenance
• Good access roads and friendly neighbors
  Recommended areas: Sanur, Ubud, Berawa

For Rental Income

For passive income through short- or long-term rentals:

• • Buy property near tourist attractions or bustling areas
  • Make sure the design is photogenic and Instagrammable
  • Complete all necessary rental permits
    Recommended areas: Canggu, Seminyak, Uluwatu, Kerobokan, Jimbaran

For Vacation Use (Second Home)

If you’re after a quiet escape:

• Choose peaceful and relaxing areas
• Consider a smart-lock system or staff to maintain the property while you’re away
• You can rent it out when not in use to cover maintenance costs
  Recommended areas: Uluwatu, Tabanan, Sidemen, Amed

4. Don’t Skip the Legal Details

Don’t let aesthetics distract you from legality — it’s better to be thorough now than face problems later. Solid legal documentation protects your investment.

Check Land and Property Legal Status

• Ownership Certificate (e.g. Freehold, HGB, Hak Pakai)
• IMB or PBG (Building Permit)
• SLF (Certificate of Building Worthiness) — important for rentals
• Environmental Permits — especially for commercial properties
• PBB (Land and Building Tax) — ensure there are no outstanding taxes

Use Trusted Notaries and Agents

Work with experienced property agents and licensed notaries in Bali. They’ll help verify documents, confirm land certificates, and ensure your purchase is safe and legal. You can start by reaching out via @onbalivin on Instagram.

Understand the Sales Contract

Make sure the contract clearly outlines both parties’ rights and obligations, payment schedules, penalties, and property use restrictions.

Don’t Build or Renovate Without Permits

If you’re planning to build or do major renovations, obtain the proper permits first (PBG). Some areas, like rice fields or protected forests, are non-buildable zones.

5. Consider ROI (Return on Investment)

ROI measures how much return you’ll get from your investment. Bali has high potential for ROI if you choose the right location, manage the property well, and cater to market demands.

Don’t focus only on purchase price — calculate how long it will take to break even, and how to keep the property desirable over time.

Final Thoughts: Buying Property in Bali Can Be a Smart Move

It’s tempting — who wouldn’t want a dreamy villa near the beach or a cozy home surrounded by rice fields? But beneath the charm, buying property in Bali involves legal considerations, clear goals, and smart financial planning.

Take your time. Do your research. Consult professionals. Make sure everything is legal and by the book.

When done right, buying property in Bali can be more than a lifestyle upgrade — it can be a long-term asset with growing value.

Happy property hunting — and may you find your dream home (or villa) in Bali soon! 

@onbalivin is ready to help!