Many foreigners come to Bali for a holiday and eventually start thinking about staying longer. After spending more time here, you may start looking for a place of your own. Maybe you want a villa to live in, a holiday home, or a property that you can use as an investment.
But before you start looking at properties, there is one question worth asking: does your visa matter when buying property in Bali? The short answer is yes, but your visa and your property rights are two different things. Your visa determines whether you can legally stay in Indonesia, while property rules determine what you can own and under what conditions.
Can Foreigners Buy Property in Bali?
Yes, foreigners can own certain types of property rights in Indonesia, but there are specific rules that apply. A foreigner cannot simply buy land in Bali under the same ownership rights available to an Indonesian citizen.
3 Ways to Legally Own Property in Bali as a Foreigner
Foreigners can legally invest in property with the following 3 ways to own property in Bali. Freehold land ownership, known as Hak Milik, is legally restricted to Indonesian citizens. Instead, foreign buyers can use several legal structures depending on whether they want a holiday home, long-term residence, or an investment connected to a business.
Three common options to consider when buying property in Bali as a foreigner.
- Leasehold
Leasehold is one of the most common ways foreigners secure property in Bali. Instead of owning the land, the buyer obtains the contractual right to use the property for an agreed period, typically 20 to 30 years.
The lease agreement should clearly state the lease term, payment schedule, renewal conditions, permitted use, and what happens when the lease ends. This option can work well for buyers who want to use a villa or operate a property without taking on a longer-term ownership structure.
- Right to Use (Hak Pakai)
Hak Pakai, or Right to Use, is a registered land right that can be held by foreigners who meet the applicable requirements. Indonesia’s current land regulations specifically recognize foreigners as eligible holders of Hak Pakai for a defined period.
This structure can be relevant for foreigners who want a legally registered residential property in Bali. The regulations also place requirements and limitations on foreign-owned residential property, including matters such as minimum value, land area, number of properties or units, and residential use.
- Foreign-Owned Company (PT PMA)
For foreigners purchasing property as part of a business or investment activity, a PT PMA (Perseroan Terbatas Penanaman Modal Asing) may be another structure to consider.
A PT PMA is an Indonesian company established for foreign investment. Depending on the company’s permitted business activities and the property involved, the company may hold certain land rights available to Indonesian legal entities, subject to the applicable regulations and licensing requirements.
Does Your Visa Determine What You Can Buy?
Not exactly. Your visa does not automatically give you the right to own a particular type of property. Having a KITAS does not mean you can buy any villa or piece of land in Bali and register it in your name in the same way an Indonesian citizen can.
A KITAS gives you permission to stay in Indonesia for a particular purpose. Property ownership is a separate matter. This is an important difference. You can have a valid visa and still need to follow specific rules when buying property. At the same time, buying a property does not automatically give you the right to stay in Indonesia indefinitely.
What About Living in the Property?
This is where your visa becomes more relevant. If you buy a villa because you want to live in Bali, you still need a visa or stay permit that allows you to stay in Indonesia. Owning a property does not replace your visa. You might buy a villa with a long-term plan to make Bali your home. That does not mean you can stay in Indonesia for as long as you want simply because you own the villa.
Your visa still determines how long you can legally stay and what you are allowed to do while you are here. Your property and your visa work alongside each other, but they are not the same thing.
Does Your Address Matter?
If you are living in the property you bought, your residential address may also become relevant to your visa or stay permit. Depending on the type of visa you have, you may need to provide information about where you live in Indonesia.
If you move to another property later, you may also need to update your residential information according to the requirements that apply to your visa. So, if you are buying a property as your future home in Bali, it is worth thinking about both the property and your visa plans at the same time.
What Should You Check Before Buying?
Buying property in Bali is a big decision, so it is better to check the important details before making any payment. First, understand the type of property and the land rights attached to it. Then, make sure the ownership structure is suitable for you as a foreign buyer.
You should also check the property’s documents and make sure everything is in order. If your plan is to live in the property, check that your visa allows you to stay in Indonesia for the period you need. And if you are unsure about the legal structure, it is a good idea to get professional advice before signing anything or paying a deposit.
Conclusions
Buying property in Bali can be a great option if you plan to spend more time in Indonesia. But it is important to remember that buying a property and having permission to live in Indonesia are two different things.
Your visa determines your right to stay in Indonesia, while property rules determine what you can legally own. So before buying a villa, look at both sides of the decision. Make sure you understand the property rights, the ownership structure, and the visa requirements that apply to your plans.
If you are planning to live in Bali and are not sure which visa is suitable for you, E-Visa Bali can help you understand your available options.
