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 the requirements are!
Bali, the island famed for its natural beauty and culture, continues to attract tourists and investors from all over the world. For foreign nationals (WNA) who wish to own a home in Bali, buying property can be the right choice.
However, it is important to note that the process of purchasing property in Bali as a foreign national involves several differences and restrictions compared to that for Indonesian citizens. This guide outlines the complete steps and requirements for buying property in Bali as a foreigner, updated with the latest information from trusted sources, current regulations, and applicable laws.
Yes, foreign nationals can own property in Bali, but with certain restrictions. Foreigners cannot directly own land under Hak Milik status (full freehold ownership).
Foreign nationals may purchase property under a leasehold right (HGB) in their own name. This right grants the use of the property for a fixed period, typically 30 years, with the possibility of an extension of up to 20 years. (Article 13(1)(c) and Article 24(2) of Regulation of the Minister of ATR/BPN No. 18 of 2021)
Foreign nationals may purchase property located on land owned by another party under freehold, by using a Hak Pakai. This right grants the authority to use the property for a fixed period, typically 30 years, with the possibility of extension. (Article 14, paragraph (1), letter c of Regulation of the Minister of ATR/BPN No. 18 of 2021)
Foreign nationals may purchase a condominium unit under Joint Ownership (Hak Milik Bersama). This grants ownership rights over an individual unit within an apartment complex. (Article 15, paragraph (1) of Regulation of the Minister of ATR/BPN No. 18 of 2021)
Passport and Visa: Foreign nationals must hold a valid passport and an appropriate visa for residing in Indonesia.
NPWP (Indonesian Tax Identification Number): Foreigners are required to have an NPWP in order to conduct property transactions.
Source of Funds: Foreign nationals must provide proof of a legitimate source of funds for the property purchase.
Company Deed of Incorporation (for Corporate Buyers): If purchasing property under a company’s name, the foreigner must present the Deed of Incorporation of the company.
Spousal 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 who wish to buy a landed house are required to hold a SKLTP or an ITAP. (Article 25, paragraph (1) of Regulation of the Minister of ATR/BPN No. 18 of 2021)
Minimum Price Requirement: Foreign nationals must purchase property at a 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, paragraphs (2) and (3) of Regulation of the Minister of ATR/BPN No. 18 of 2021)
Statement of Non-Residence in Indonesia: Foreign nationals who wish to purchase a landed house must submit a Statement of Non-Residence in Indonesia, issued by the Embassy or Consulate of the Republic of Indonesia in their country of origin. (Article 25, paragraph (2) of Regulation of the Minister of ATR/BPN No. 18 of 2021)
Tax Compliance Statement: Foreign nationals must submit a Tax Compliance Statement from the Directorate General of Taxes (DJP). (Article 25, paragraph (3) of Regulation of the Minister of ATR/BPN No. 18 of 2021)
Compliance with Applicable Laws and Regulations: Foreign nationals are required to comply with all Indonesian laws and regulations regarding property ownership, including Law No. 5 of 1960 on Basic Agrarian Principles (UUPA), Law No. 11 of 2020 on Job Creation (UUCK), and Regulation of the Ministry of ATR/BPN No. 18 of 2021 on the Procedures for the Implementation of Management Rights and Land Rights.
Determine the Type of Property: Choose the type of property that suits your needs and budget, such as a landed house, condominium, or villa. Consider the location, size, amenities, and price of the property.
Market Research: Conduct market research to understand the fair market prices for property in your area of interest. Compare prices from various sources and consider the factors that may affect the value of the property.
Prepare Your Funds: Make sure you have sufficient funds to purchase the property, including the down payment, taxes, notary fees, and renovation costs (if necessary).
Obtain the Necessary Permits: Foreign nationals who wish to buy a landed house must hold a Long-Term Stay Permit (SKLTP) or a Permanent Stay Permit (ITAP). (Article 25, paragraph (1) of Regulation of the Minister of ATR/BPN No. 18 of 2021)
Purchase Process
Find a Real Estate Agent: Find a trusted and experienced real estate agent who handles transactions involving foreign nationals. Make sure the agent holds an official license and understands the regulations applicable to foreigners.
Search for a Property: The real estate agent will help you find a property that meets your criteria. Conduct a thorough inspection of the property you are interested in to ensure it is in good condition.
Negotiate the Price: Negotiate the property price with the seller through the real estate agent. Make sure you obtain a fair price in line with market conditions.
Sign the Sale and Purchase Agreement (PPJB): Draft a PPJB with the seller, with the assistance of a notary. The PPJB must set out 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 in accordance with the PPJB. Make sure you obtain a valid payment receipt.
Transfer of Title: Transfer the property title into your name through a notary. This process takes time and incurs fees.
Pay Taxes and Other Fees: Pay the income tax on the property purchase (PPh Article 26) and other fees, such as notary fees and land registration fees.
Property Handover: Complete the property handover with the seller once all payment and administrative obligations have been fulfilled. Make sure you receive all the necessary documents, such as the property keys and the title certificate.
