Can Foreigners Purchase Property In Bali – 2024 Guide


Bali is a destination everyone dreams of visiting at least once. But as a foreigner, owning property in Bali can be a tricky business. As a non-resident, there are very limited ways in which one can acquire property rights in Bali. In this article, we will describe the intercies of property ownership in Bali and the exceptions related to it.

There are several different ways in which one can approach investing money in real estate, however, not all of them are safe or legal. We have mentioned different aspects of legal ownership as well as the possible risks and limitations that you will face as a foreigner. So let us tackle all the points, one by one.

Through a Nominee

Perhaps the most common way in which foreigners invest money in real estate is through the help of a local nominee. A local nominee is a resident in either Indonesia or Bali. In this method, foreigners pay and make the transaction through a local resident which provides no security whatsoever to their investment.

The real estate property is registered under the name of the nominee even though the money is paid by the non-resident. This process is not recommended by any real estate agent or expert because it does not guarantee that the nominee will honor their promise and hand over the rights of the property to the foreigner in due time.

This practice still goes on because many people do not know alities of property ownership in Bali. There are perfectly legal ways in which one can register a property in their name without risking their finances. If you want a reliable service to help you with property ownership, click here.

Legal Ownership in Bali


Contrary to popular belief, it is perfectly legal to own property in Bali. Nusa Penida Land is prime real estate in Indonesia which should only be acquired through the right process for your financial security. But it has to be done through certain specific ways. There are three ways in which property ownership is categorized which includes the following:

  • Right to Own or Hak Milik
  • Right to Use or Hak Pakai
  • Right to Build or Hak Guna Bangunan

The first category is only reserved for citizens of Indonesia. So, that leaves two ways in which a proper certificate can be gained. Neither of these two methods require finding a local nominee. Both of these are perfectly legal so let us understand how it works.

With a Foreign Owned Company

A foreign old company is the easiest way to legally own property in Bali. If you want to buy land for personal use, the certification will be filed under the Right to Use category. There are certain limitations attached to it which we will get to in the next section. The other category is the Right to Build certification which allows foreigners to gain ownership in a safe and legal manner.

One would have to make a formal liaison with this foreign owned company in order to initiate the process of buying land. You will only get one of the two certifications mentioned above and it will be dependent on the use of the property you have in mind. Either of these two documents will make you the rightful owner of the land, giving you the right to sell as well.

The advantages of finalizing your name as the legal owner of the land are numerous. It will give you the right to pass it down as an asset to future generations. It will also be well within your rights to make the sale to a third party whenever you desire. After 80 years of holding the property the certificate has to be renewed. But since that is in the next century you can worry about it later.

There are Exceptions


Even though foreigners can own land in Bali, certain limitations are important to consider. The first limitation is under the category of Right to Use. For a property to be classified under this category, the land needs to have a building on it. Additionally, if an owner has this particular certification, they won only by one piece of land with it. Right to Use specifically made for property meant for personal use.

So, if an investor wants to buy multiple properties in Bali they would have to go with the Right to Build certification. This certificate is ideally perfect for business acquisitions or real estate deals under the name of a particular organization. One also needs to consider that all of the real estate deals will have a minimum value for the land. You can get a better idea about it by consulting a real estate agent.

The exceptions do not end here because the geographical location of the land is also important. For instance, any non-resident is not allowed to buy land which falls in the Green Zone or can be used for agriculture. So, you can only invest in property that is classified as a tourist, trading or residential space.

What is the Process?

Let us briefly get into the process which will allow you to become the legal owner of real estate in Bali. Firstly you will submit documents through a proprietor. The form should be completely filled with adequate proof of fulfilling eligibility criteria. For individuals or companies looking for the Right to Build certification, an application for a building permit also needs to be filled and submitted. After all the inspections and verifications are done the property will be registered in your name.

The Takeaway


Purchasing real estate in Bali is easy to do if one is aware of the legalities. There are certain limitations worth considering. One should also know that the prevalent method nominal does not work as well as you might think it would. Follow the process, submit the documents, and be ready with all the proofs to officially get registered as a property owner in Bali, Indonesia.

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