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Bali Property Ownership for Foreigners and Which One You Should Choose
8 November 2021 by Ade
Thinking of owning property in Bali? Before signing on the dotted line and putting in any money on the property that you’ve been eyeing, there are a few important things that you must know. One of them is the types of ownership that are available in Bali and Indonesia. This is very important especially if you’re a foreigner. Let’s take a look.
Hak Milik / Freehold
There are different titles for both land and property in Bali and each title connotes a different meaning. The “freehold” title or “Hak Milik” means that only Indonesian citizens can hold this title. If you’re a foreigner and you’re tempting to hold a freehold land, it will automatically be deemed void, and therefore, the land will automatically belong to the government.
Hak Pakai / Right Of Use
A secondary title, known as “Right of Use”, or “Hak Pakai” is the best option for a foreigner. With a built-in extension of 25 years, the title comes with renewal after 20 years with only a small tax implication. There is no mention anywhere in Indonesian law that these extensions or renewals cannot be continued as long as it is done on state-owned land. Some restrictions to this title would include the size of land and property and that you must hold a valid permit to stay in Indonesia such as a KITAP or a KITAS.
Hak Guna Bangunan / Right To Build
The third title is a commercial title; “Hak Guna Bangunan”, which means “right to build”. This title is compulsory for both foreign and Indonesian companies buying, selling, or managing villas for commercial purposes. The good news is that there are no restrictions for a foreign PT PMA owning such a company 100% as long as it is a 4-star and up.
Remember that you must also obtain your accommodation license and Ijin Mendirikan Bangunan (IMB). All of this may sound confusing, not to mention stressful, especially if this is your first time navigating the Indonesian property landscape. Doing it by yourself can be quite a challenge. It will also take up a lot of your time.
Why not engage the services of a trusted, reliable, and credible property agent here in Bali? Bali Coconuts Living has been serving scores of satisfied customers with experienced consultants helping you every step of the way.
You won’t ever have to worry about property laws, paperwork, bureaucracy, or scammers trying to get the better of you. Contact us now. Bali Coconut Living is a leading Seminyak-based villa property agent ready to assist you in buying, selling, and villa maintenance.
