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It’s a well-known fact that Australians love Bali! Just take a walk through any of the tourist towns of Seminyak, Kuta and Legian and you’ll see an Aussie at every corner. Aussies love Bali so much that they return year after year, many of whom first step foot on the island as a child, and eventually return to the island with their own families in tow. Bali is the perfect place to own villa property for Australians, but many of them didn’t know how to buy villas in Bali.

Australians have a special relationship with the locals. The Balinese are wonderfully kind and polite, while Australians are naturally friendly and fun. This goes together well, and many returning tourists would develop wonderful friendships with the locals, whom they consider their “Balinese family”.

Balinese are always happy to welcome their jolly and friendly friends

Without the Aussies, Bali just wouldn’t be the same and the Balinese are always happy to welcome their jolly and friendly friends from down under every time. In fact, many Australians have set down roots here, making the island their semi-permanent home. With many stunning villas available for long-term lease or rent here in Bali, it’s easy enough to pack up and move.

So the question is, can Australians buy villas in Bali? One of the most important things to understand before you purchase anything is the legalities and the Indonesian property law, which clearly states that foreigners aren’t legally allowed to own land or property in Indonesia.

But don’t worry, all is not lost. There are 3 main types of property ownership in Indonesia - Hak Milik / Freehold; Hak Pakai / Right Of Use; and Hak Guna Bangunan / Right To Build.

The second option – Hak Pakai / Right Of Use – would be the best option for an Australian person who wishes to buy a villa in Bali. It lets you “purchase” a leasehold Bali property. Simply put, a “lease” means a long-term rent of a property – you “own” the property for a number of years whether 25 or 70 years, depending on your agreement with the owner. This does not include the land that the property stands on.

With a built-in extension of 25 years, the title comes with renewal after 20 years with only a small tax implication. Plus, 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.

If you’re planning to build a villa from scratch, remember that you must also obtain an accommodation license and a permit to build, known as Ijin Mendirikan Bangunan (IMB).

Ready to buy a beautiful Bali villa or build your very own?

You’ll need to engage the services of a trusted, reliable, and credible property agent here in Bali. If this is your first time navigating the Indonesian property landscape, trust us when we say that doing it by yourself can be quite a challenge. It will also take up a lot of your time.

Partner with Bali Coconut Living, a leading Seminyak-based villa property agent 

We are ready to assist you in buying, selling, and villa maintenance. For decades now the company has served scores of satisfied customers from all over the world. You’ll have experienced consultants helping you every step of the way and you won’t ever have to worry about property laws, paperwork, bureaucracy or scammers trying to get the better of you! Contact us now, we’d love to hear from you.