Tips for Foreigners to Own a Villa in Umalas Bali3 October 2019 by Ade
Besides being a favorite travel destination, Bali attracts foreigners to invest and buy property around the island. However, buying property in Umalas or any other part of Bali, is not always safe for foreigners.
In this article, find out how to buy a villa safely.
Foreign Bali Property Ownership
There are two types of rights stated in the property regulations and real estate ownership in Indonesia. They are the “Right to Own” (Hak Milik) and the “Right to Build” (Hak Guna Bangunan). There are a lot of foreign investors in Bali who think an Indonesian citizen can act on their behalf to acquire the Hak Milik Certificate.
Note that this is an extremely risky practice, as no matter how close you are with the nominee, they have the potential to overtake the property, leaving you, as a foreigner, with no protection for your investment.
Buying a Bali property safely
Owning a legal entity (PT PMA) and acquiring the ‘Right to Build’ license in Indonesia, is the only way foreigners can safely invest in property or buy land in Bali. This will protect your investment and give you plenty of time to enjoy your property, bequeath it to a family member, or even resell the Hak Pakai to a local.
There are a few notes for foreigners to consider about Hak Pakai, including that The Hak Pakai can only be held if the land already has a building on it. It’s also worth noting the minimum value of the property and that it must be located in a tourist, residential, or trading area, as acquiring land in Bali agricultural or greenbelt zones are prohibited.
The process of buying a Bali property will involve acquiring the Hak Pakai and submitting a packet of completed forms to the Indonesian National Land Office (BPN). These include relevant and supporting documents, proof of land payment, and the condition of Hak Pakai. Once these conditions are met and built with the right building permit (IMB), the BPN will issue a Hak Pakai under you or your company’s name.
This is the correct way of purchasing a property in Bali, and things you should avoid as a foreigner. Contact Bali Coconut Living for more information on the best villas in Bali, and we’ll help you make a decision on buying a property in the safest & most secure way.