Can Foreigners Legally Buy Property in Bali? What You Must Know

Investing in Bali’s real estate market is a dream for many overseas buyers, especially for those targeting high-return vacation rentals. But one of the first, and most important questions is: Can foreigners legally own property in Bali? The short answer is yes, through certain legal structures. You just need to understand which ones are available, how they work, and how to use them strategically. Below, we break it down, and show why our new Janu villa project in Bingin is a particularly compelling opportunity.

1. Why Freehold (Hak Milik) Is Not an Option for Foreigners

• Under Indonesian law, foreigners cannot directly buy freehold land (known as Hak Milik), which is reserved for Indonesian citizens. That means other legal structures are essential for non-Indonesian investors who want to own property in Bali. Bamboo Routes+1

2. Legal Ways Foreigners Can Hold Property in Bali

Here are the main legal mechanisms available to foreign investors:

a. Leasehold (Hak Sewa)

• This is the most common and straightforward route. Foreigners can lease land or buildings for a fixed term, typically 25 to 30 years, but many leases include extension options that can stretch to 80 years.

• You don’t own the land, but you do control the building or villa on it during the lease term, and you can rent it out, sublease, or even assign the lease to someone else.

• To protect your investment, it's vital to have professional legal support: a notary should carefully draft and notarize the lease and ensure renewal terms are clearly defined.

b. Right to Use (Hak Pakai)

• This gives a foreign individual the right to use the land. Qualified foreigners, usually those with a KITAS (temporary residency permit) or KITAP, can register a Hak Pakai title in their own name. The Bali Lawyer Services

• The typical term is 25–30 years, but it can be extended, depending on government regulation and the individual agreement.

• However, Hak Pakai is more limited: it's designed for residential use, and in many cases, cannot be used for commercial rental.

c. PT PMA + HGB (Right to Build)

• This is a powerful structure for investors: you establish a PT PMA (a foreign-owned Indonesian company), which can hold a Hak Guna Bangunan (HGB) title. The Bali Lawyer Services+1

• HGB “Right to Build” typically has an initial 30-year term, but in many cases, it can be extended — often up to 80 years in total, giving you very long-term control.

• Holding property via a PT PMA + HGB gives you greater legal security, especially if you plan to run the property as a business (e.g. Airbnb villa, hospitality).

3. What Documents Do You Need to Buy Leasehold Property in Bali

When investing via leasehold (Hak Sewa), you'll typically need:

• A valid passport (notarized, sometimes apostilled) for identity verification.

• Possibly a Tax ID number (NPWP), especially if you plan to rent out the property or structure ownership through a PT PMA.

• A well-drafted lease agreement, notarized by a trusted PPAT notary, with clear renewal clauses and legal protections.

4. Why Leasehold Is a Smart Choice — Especially in High-ROI Areas

• Leasehold is legally secure when properly structured, giving you long-term rights to use the land and run your villa business.

• Compared to riskier nominee schemes (where someone local holds title for you), leasehold + legal documentation is transparent and enforceable. The Bali Lawyer Services

• For investors focused on Airbnb or high-return rentals, leasehold with a PT PMA + HGB can deliver both control and scalability.

• Because the land doesn’t belong to you perpetually, the upfront cost can be lower than what a “freehold” market might demand, letting you deploy capital more efficiently.

5. Why Janu Bingin – is Ideal for Foreign Investors

If you’re looking for maximum ROI from your Bali investment, this is where things get exciting, especially in Bingin and Uluwatu. Here’s why our Janu villa project in Bingin is a standout:

• Premium Location, High Demand: Bingin sits on the Bukit peninsula, famous for its surf, sun-set cliffs, and boutique luxury vibe. This translates into strong guest demand among higher-spending travelers.

• Limited Supply = Upside: Unlike Canggu or Ubud, Bingin has more geographic constraints (cliffs, zoning, terrain), which means fewer villas get built. That scarcity helps maintain high daily rates and strong occupancy.

• Strong Rental Potential: With a build in Bingin, your leasehold (or PT PMA + HGB) investment is paired with a location that’s proven to deliver excellent Airbnb performance for villas — which is exactly what we’re doing with Janu.

• Trusted Developer: Through Bali Property Projects, we handle the legal setup (lease, PT PMA if needed), construction, property management, and guest operations, so you can invest with confidence, even from abroad.

6. Risks & How to Mitigate Them

Owning leasehold property in Bali is very doable, but it’s not risk-free. Here are some common issues and how to protect yourself:

• Make sure extension clauses are clearly written in your lease so you aren’t locked out at the end of the term.

• Work with reputable notaries, lawyers, and land-title experts to verify zoning, building permits, and land status.

• Confirm that the property has the correct tourism or lodging permits (if you’re running a vacation rental).

• Maintain strong relationships with your local property manager, both for guest operations and to maintain the land/building in good condition.

• Have clarity on exit strategies: lease reassignment, lease extension, or resale.

7. Final Thoughts: Yes, You Can Invest — and Bingin Is a Golden Opportunity

To sum up:

• Foreigners cannot directly own freehold land in Bali, but leasehold (Hak Sewa) and PT PMA + HGB are legally solid, well-regulated, and widely used for investment.

• With the right legal structure, you can build, rent out, and eventually transfer your stake, all while complying with Indonesian law.

• Bingin, thanks to its scarcity, scenic beauty, and strong tourist demand, is one of the smartest places to deploy your capital, and Janu Bingin is built to capitalize on precisely that.

Want to Learn More or Explore Janu Villas?

If you’re ready to explore real, legally-structured investment opportunities in Bali, particularly in Bingin get in touch with Bali Property Projects. We’d love to show you Janu Bingin, walk you through the leasehold or PT PMA setup, and help you plan for strong long-term returns with confidence.