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Looking to buy land in Bali? Foreigners can buy land in Bali as long as they adhere to the local property laws and regulations. It’s not completely impossible and we at Bali Coconut Living are here to show you how.

Being a land owner in Bali is a dream come true, but a word of warning before signing on the dotted line or putting down any deposits: There will be loopholes that will tempt you into taking the easy way out, and shortcuts may present themselves to buy land in Bali but these do not come without risks; the outcome could be devastating and dangerous for those who do not stick to legal and official channels.

Having said that, set your worries aside. As your trusted property partner, we’re here to show you how foreigners can legally and safely buy land in Bali.

1. Buy Land In Bali - Understand Indonesia Property Laws & Land Laws

Before we proceed, it’s important to understand that foreigners aren’t allowed to own land or property in Bali. Only Indonesians can buy land in Bali, while foreigners can take out a long-term lease which can go anywhere from 2-100 years.  

Various certificates indicate the title of land or property ownership that you’re looking to purchase, which is why you must understand basic land/property types. So, what are the regulations for foreigners looking to buy land in Bali?

The “freehold” title or “Hak Milik” means that only Indonesian citizens can hold this title. If you’re a foreigner and you’re tempted to hold a freehold land, it will automatically be deemed void, and therefore, the land will automatically belong to the government.

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. Restrictions include the size of land and property and you must hold a valid permit to stay in Indonesia such as a KITAP or a KITAS.

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.

Remember, Indonesian law prohibits foreigners from holding the Hal Milik or freehold certificate, and if someone is telling you that you can, that is a huge red flag. We would strongly recommend that you speak to your lawyers and notary about property tax and other taxation involved when buying land in Bali.

2. The Dangers Of Nominee-Ownership Agreement

There have been many cases of foreigners trying to outsmart the Indonesian property law by entering into a nominee-ownership agreement. They buy land in Bali through an Indonesian citizen who will then hold the land or property in their name.

This may sound like it’s an easy way out, but it is incredibly risky and not 100% legal. There have been many cases in the past when a foreign buyer or renters tried to purchase or rent a property using a “representative” or a “nominee” – in most of these cases, they have met with unhappy endings or have had to navigate through incredibly stressful situations involving the law and large sums of money.

The only ‘trusted’ and legal way to do this is if you were married to an Indonesian citizen and buy land in Bali using his/her name.  

3. Be Smart & Get A Credible Property Business Partner

Get yourself a credible and trusted property business partner or property agent who will have your best interest at heart, one with an excellent track record helping foreigners buy land in Bali, with great recommendations on properties that belong to trustworthy owners. A certified property agent can also keep you from getting scammed. There have been cases here in Bali where property “owners” run off with deposits. Some charlatans will copy property advertisements and post them online with their own contact details. Once the thief has received your security deposit from you, he or she then disappears with your money.

A property business partner or agent will be extremely helpful to you as buying land in Bali can be a time-consuming and stressful experience. There is a ton of red tape and bureaucracies to maneuver, not to mention the often confusing Indonesian property laws to navigate and the discussions and negotiations you’ll need to make with the property owner, notaries, lawyers, the banjar and other local authorities.

4. Survey The Land You Want To Buy

It’s extremely important that you take a look at the physical land and conduct a site visit before agreeing to buy land in Bali. Scour the neighborhood and the surrounding areas, and take note of important things like road access, the closest neighbors, land topography and what’s nearby. Depending on what you want to build on the land, is there water and electricity and other utilities? Is there sea erosion or perhaps a plant or factory nearby?

5. Secure Your Transaction With A Notary

In addition to a property business partner or property agent, you’ll need a notary who knows the ins and outs of property ownership, taxes, and other legally binding agreements to give you absolute peace of mind and help protect you against fraudulent property deals. A property agent can only try their best to filter out shady profiteers but they do not have the authority that a notary does when it comes to legal disputes and lawsuits. So do yourself a favor and hire a notary, even if you’re certain that you’ve met all legal requirements.

Buy Land In Bali As A Foreigner With Bali Coconut Living

Ready to buy land in Bali? You’ll need a property business partner and a property agent in Bali, so look no further than Bali Coconut Living. We’re experts in the Bali property law and a Seminyak-based villa property agent who is always ready to serve you if you need assistance in buying, selling, and even maintaining a villa for your passive income.

We have hundreds of land in Bali for you to peruse through including Land in Jimbaran,  Land in Seminyak and Land in Uluwatu. Land in Nusa Dua, Land in Umalas, and Land in Canggu

Feel free to browse all of our properties and if you have any questions or inquiries contact us now, or pick up the phone and call us at +62 361 847 6727.