Foreign nationals can now buy property in Bali. If you are interested in owning a home on the Island of the Gods, read on to find out how and what is required!
Bali, an island renowned for its natural beauty and culture, has always attracted tourists and investors from around the world. For foreign nationals (WNA) who wish to own a home in Bali, purchasing property can be the right choice.
However, it is important to note that the process of buying property in Bali as a foreigner involves several differences and restrictions compared to Indonesian citizens. This guide explains the complete steps and requirements for purchasing property in Bali as a foreign national, updated with the latest information from trusted sources, current regulations, and the governing legislation.
Yes, foreign nationals can own property in Bali, but with certain restrictions. Foreigners cannot directly hold land under Hak Milik (freehold ownership).
Foreign nationals can purchase property under a leasehold right (HGB) in their own name. Leasehold grants the right to use a property for a specified period, typically 30 years, with the possibility of extension for up to 20 years. (Article 13(1)(c) and Article 24(2) of Ministry of ATR/BPN Regulation No. 18 of 2021)
Foreign nationals can purchase property on land held under another party’s freehold title using a Right of Use (Hak Pakai). This right grants the ability to use a property for a specified period, typically 30 years, with the possibility of extension. (Article 14(1)(c) of Ministry of ATR/BPN Regulation No. 18 of 2021)
Foreign nationals can purchase a condominium unit under Strata Title ownership. Strata Title grants ownership rights over an individual unit within an apartment complex. (Article 15(1) of Ministry of ATR/BPN Regulation No. 18 of 2021)
Passport and Visa: Foreign nationals must hold a valid passport and an appropriate visa to reside in Indonesia.
NPWP (Tax Identification Number): Foreign nationals are required to have an NPWP to carry out property transactions.
Source of Funds: Foreign nationals must provide proof of a legitimate source of funds for the property purchase.
Company Deed of Establishment (for Corporate Buyers): If purchasing property in the name of a company, foreign nationals must present the company’s Deed of Establishment.
Spouse’s Consent (for Married Foreign Nationals): Married foreign nationals must obtain their spouse’s consent to purchase property.
Long-Term Stay Permit (SKLTP) or Permanent Stay Permit (ITAP): Foreign nationals wishing to purchase a landed house are required to hold an SKLTP or ITAP. (Article 25(1) of Ministry of ATR/BPN Regulation No. 18 of 2021)
Minimum Price Requirement: Foreign nationals must purchase property at the minimum price set by the government: IDR 5 billion for a landed house and IDR 2 billion for an apartment unit in Bali. (Article 27(2) and (3) of Ministry of ATR/BPN Regulation No. 18 of 2021)
Certificate of Not Owning a Residence in Indonesia: Foreign nationals wishing to purchase a landed house must present a Certificate of Not Owning a Residence in Indonesia, issued by the Indonesian Embassy or Consulate in their home country. (Article 25(2) of Ministry of ATR/BPN Regulation No. 18 of 2021)
Tax Compliance Statement: Foreign nationals must present a Tax Compliance Statement from the Directorate General of Taxes (DJP). (Article 25(3) of Ministry of ATR/BPN Regulation No. 18 of 2021)
Compliance with Applicable Laws: Foreign nationals must comply with all applicable laws and regulations in Indonesia relating to property ownership, including Law No. 5 of 1960 on Basic Agrarian Principles (UUPA), Law No. 11 of 2020 on Job Creation (UUCK), and Ministry of ATR/BPN Regulation No. 18 of 2021 on the Procedures for Implementing Management Rights and Land Rights.
Determine the Type of Property: Choose a type of property that suits your needs and budget, such as a landed house, condominium, or villa. Consider the location, size, facilities, and price of the property.
Market Research: Conduct market research to find out the fair market price for property in your area of interest. Compare prices from various sources and consider factors that may affect property value.
Prepare Funds: Ensure you have sufficient funds to purchase the property, including the down payment, taxes, notary fees, and renovation costs (if required).
Obtain the Necessary Permits: Foreign nationals wishing to purchase a landed house must hold a Long-Term Stay Permit (SKLTP) or Permanent Stay Permit (ITAP). (Article 25(1) of Ministry of ATR/BPN Regulation No. 18 of 2021)
Find a Property Agent: Find a trusted and experienced property agent who handles transactions involving foreign nationals. Make sure the agent holds an official licence and is familiar with the regulations applicable to foreigners.
Find a Property: The property agent will help you search for a property matching your criteria. Conduct a thorough inspection of any property you are interested in to confirm it is in good condition.
Negotiate the Price: Negotiate the property price with the seller through the property agent. Make sure you secure a fair price in line with market conditions.
Sign a Sale and Purchase Agreement (PPJB): Draw up a PPJB with the seller, assisted by a notary. The PPJB must contain all the terms and conditions of the purchase, including the price, payment method, and handover schedule.
Pay the Down Payment: Pay the down payment to the seller as agreed in the PPJB. Make sure you obtain a valid payment receipt.
Transfer the Certificate: Transfer the property certificate into your name through a notary. This process takes time and incurs costs.
Pay Taxes and Other Fees: Pay income tax on the property purchase (PPh Article 26) and any other fees, such as notary fees and land registration fees.
Handover of the Property: Complete the handover of the property with the seller once all payment and administrative obligations have been fulfilled. Make sure to receive all necessary documents, such as the property keys and certificate.
