BALI VILLA SALE GUIDE

BUY VILLA IN BALI: A COMPREHENSIVE GUIDE FOR INVESTORS

Property Ownership Types in Bali

Hak Sewa / Leasehold

Fixed-duration ownership for foreigners (up to 30 years, extendable). This is the most common property title for foreign investors in Bali, providing secure long-term rights to use the land and buildings.

Hak Milik / Freehold

Permanent ownership exclusively for Indonesian citizens. This is the strongest form of property ownership in Indonesia, providing full and permanent rights to the land.

Hak Pakai

Similar to Hak Sewa but involves conversion from Hak Milik, less common, and for private residence. This title is typically used for specific purposes and has more restrictions than leasehold.

Hak Guna Bangunan

Reserved for commercial purposes, converted from Hak Milik, for Indonesian or foreign-owned companies (valid up to 70 years). This is used for business and commercial property development.

Property Title Requirements

Document Type Hak Sewa Hak Milik Hak Guna Bangunan Hak Pakai
Passport ✓ X ✓ ✓
ID Card X ✓ X X
PT PMA X X ✓ X
KITAS ✓ X ✓ ✓
BPNS Form ✓ X X X
Foreigner Indonesian Citizen X X X X
Only allowed for Indonesian citizen X ✓ X X

Buying/Leasing Process in Bali

Leasehold / Hak Sewa Process

1
Agree with the price & Condition
2
Sign MOU & Pay Deposit
3
Due Diligence Process
4
Prepare Lease Agreement
5
Sign Lease Agreement & Pay Balance
6
Finalize lease and taxes payment as per the agreement

Freehold / Hak Milik / HGB / Hak Pakai Process

1
Agree with the price
2
Sign MOU & Pay Deposit
3
Due Diligence Process
4
Prepare Sale & Purchase Agreement
5
Sign SPA & Pay Balance
6
Pay Taxes (BPHTB & PPh)
7
Land Office Registration
8
Title Deed Transfer

Important Notes:

  • • Limitation on land purchase: one plot per name, max 2,000 m²
  • • Buildings on leased land can be used for residential purposes only
  • • All property transactions must be conducted through a notary and registered at the Land Office