Bali · Leasehold
How it works · Checked
Key facts about buying in Bali
Foreigners cannot own land in Bali. A villa or an apartment is bought on a long-term lease (leasehold) or under a Hak Pakai right of use. The price of such a property is the price of its term, so the term, the extension and the land documents need to be checked before you reserve, not after.
Key figures
Leasehold in plain words
Leasehold is a long-term lease of the land and the building. You pay once for the whole term; you can use the property, rent it out and assign the right if the contract allows it. When the term ends, the property returns to the landowner unless the lease is extended. The alternative is a Hak Pakai right of use: on state land (HPL), up to 30 years, extendable by 20 and renewable for 30 (PP 18/2021); on private land, up to 30 years, after which only a new agreement with the owner is possible. 80 years is a maximum, not a guarantee: the extension and renewal require an application and a valid residence permit (KITAS/KITAP). Registering property in a local's name through a nominee is banned by Bali Regulation 4/2026 (NusaBali). More in our article on land rights in Bali.
Checklist: what to check before you reserve
- The landowner's certificate (SHM) and whether the owner's name matches the lessor in the contract.
- Consent of the owner's spouse and heirs, where required.
- Zoning of the plot: whether housing and tourist rentals are allowed.
- The building permit (PBG) and, for completed properties, the certificate of fitness (SLF).
- When the term starts: from signing or from completion. During construction this can "eat" 1-2 years.
- Extension: a price or a price formula and notice periods, not "by agreement".
- The right to assign and sublet without the owner's consent - resale and rentals depend on it.
- Notarisation, and what happens to the contract if the land is sold or the owner dies.
- Who pays the 10% tax on the lease payment and the local property tax.
- For off-plan sales - the developer's bank guarantee and payments tied to construction stages.
The price of the term: how to compare
A simple calculation: a $300,000 villa on a 30-year lease costs $10,000 a year just for the right of use, and the property is not yours at the end of the term. Compare projects by the price per year of remaining term, not only by the total price.
Taxes
On purchase - BPHTB tax of 5% in Badung regency (Perda Badung 7/2023) and VAT if it is not included in the price. On rental income, a non-resident pays 20% of gross income (DJP) plus the regional accommodation tax.
Yields - honestly
Developer yield claims and independent data often differ. We show a calculation that includes taxes, the management company fee and vacancy. We do not promise returns or price growth: we show the calculation and the sources, and the decision is yours.
In short
- A foreigner can use leasehold, Hak Pakai or a PT PMA company - all time-limited; land ownership is not available.
- Nominee "local owner" schemes are banned by Bali Regulation 4/2026.
- Before reserving: SHM, zoning, PBG/SLF, start date of the term, extension and assignment terms.
- Compare the price per year of remaining term.
Up to date as of . Catalog prices come from developer price lists on the check date shown on each project card. This is general information, not legal, tax or investment advice; returns and price growth are not guaranteed. We check the conditions for your passport with a local lawyer before you reserve.
