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FAQ
What is the difference between buying and renting property in Bali?
Buying gives long-term control (freehold or leasehold), while renting only gives temporary usage rights.
Can foreigners own property in Bali?
Foreigners cannot own freehold land directly, but they can obtain rights through leasehold, Right of Use (Hak Pakai), or PT PMA ownership.
What is Freehold (Hak Milik)?
Full land ownership — only Indonesian citizens can hold it.
What is Leasehold (Sewa / Hak Sewa)?
A long-term rental contract giving the right to use the land/property for a fixed period (commonly 25–30 years with extension options).
Can foreigners sign a leasehold contract?
Yes, leasehold contracts legally allow foreigners to control and use property in Bali.
What is a PT PMA?
A foreign-owned company in Indonesia that allows foreigners to legally conduct business and own property under specific land rights.
Can a PT PMA own property?
Yes. A PT PMA can legally hold Hak Guna Bangunan (HGB) or Hak Pakai for long-term ownership.
What is the legal way for foreigners to own property in Bali?
Three main legal pathways:
Leasehold Agreement
Hak Pakai (Right of Use) under their name
PT PMA ownership (HGB/Hak Pakai)
What is a Pondok Wisata License?
A small-scale villa or homestay rental license, commonly used for daily/short-term rentals. Required for legally operating Airbnb-style vacation villas.
Are taxes required for rental income?
Yes, rental income is taxable under Indonesian law for both locals and foreigners.
What is a standard lease contract in Bali?
A legal agreement granting usage rights for a specific number of years (typically 1–30 years). It should include: payment terms, extension options, maintenance responsibilities, and dispute resolution.
How long does a lease contract last?
Short-term: 1–12 months
Medium-term: 1–5 years
Long-term/leasehold: 25+ years
What’s the difference between daily/weekly/monthly rentals and contract-based rent?
Daily/Weekly/Monthly: short stays, usually for holiday or temporary living; no formal lease contract needed.
Contract (Kontrakan): longer-term usage (1+ years), requires a formal written agreement.
When is a rental contract required?
Use a contract when renting:
- Long-term (6+ months)
- Leasehold
- Business or commercial usage
- When investing significant money in renovations or furnishings
What does the label “Sold” mean?
This label indicates that the property has already been purchased and is no longer available. It usually remains visible only for archival or pricing reference purposes.
What does “Off-Plan” or “Planned/Pre-Construction” mean?
This indicates the property is still in the planning or pre-construction stage. It is usually offered at lower pre-launch prices, and payments are made progressively based on construction milestones.
What does “Under Construction” mean?
The property is in the physical building phase and not yet ready for occupancy. Investors often buy at this stage because prices are lower compared to completed units.
How do I choose the best location to buy property in Bali?
Choose the location based on your goals:
Canggu, Seminyak, Uluwatu: Best for investment and villa rentals.
Ubud: Great for tranquility and cultural surroundings.
Sanur, Pererenan, Umalas: Ideal for families and expatriates.
Ensure the area has good access, proper infrastructure, and strong rental demand.
Does location affect property value?
Yes, significantly. Properties in high-demand tourist areas or near the beach often have higher sale and rental values, along with faster annual appreciation.
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