How to buy Land or Villa in Bali
By committing to purchasing a land or villa in Bali, you get to explore a variety of options and conclude on which property best matches your needs and that of your family. Whether you are a foreigner or Indonesian citizen, our professional expertise is always available for you to tap from. We provide excellent services for:
If you have already decided to come and live in Bali, The Villa Bali Tropic Team will help you in each step of your project till you secure your dream home.
Looking to expand your investments and acquire a second Home in Bali? The Villa Bali Tropic Team can assist you to find the perfect location and property.
We will even manage your property when you are not in town.
Investment acquisitions and properties
If you want to make an investment in Bali’s beautiful real estate, our Villa Bali Tropic Team is here to give supply all the vital information you need and industry-best practices for the best returns on investments.
Due to the laws stipulated by the Indonesian Government. Foreigners have 4 options to buy and own properties
Before a foreigner can conclude on the best practices to acquire a land in Bali or generally in Indonesia, he must first understand the Land Code of Indonesia.
3 different important rights are detailed: The Right of usage (HakPakai), The Right of Lease (HakSewa) and The Freehold (HakMilik). A foreigner only has access to the Right of usage and Right of Use but can use an Indonesian Nominee with different contracts to be able to indirectly own his land and secure his investments.
Using an Indonesian representative
The Indonesian nominee will acquire the land for the foreign buyer. Ownership of land is transferred from the previous owner to the Indonesian representative. Once the land is bought, the foreign buyer must make three agreements with the Indonesian representative to ensure that the investment is secured.
- Loan Agreement: This agreement states that the foreign buyer lent the purchase price to the Indonesian representative.
- Irrevocable Power of Attorney: The POA gives the foreign buyer full authority to sell, lease, or mortgage the land.
- Permanent Right of Use Agreement: This agreement gives the foreign buyer fullrights to the use and occupy of the land.
A foreign national can also acquire a land in Indonesia with a leasehold title. This is ideally granted to qualified foreigners who are domiciled in Indonesia with a KITAS working visa. The lease runs for 25 years, and can be renewed for another 25 years.
Right of Use (HakPakai or SHP)
This title can be held by individual foreigners residing in Indonesia, representative offices of foreign institutions or foreign embassies. The title can be granted for a maximum validity period of 30 years and is extendable for another 20 years. After the first 20 years, it is extendable for another 30 years. Generally, foreign individuals or foreign companies that are not registered under Indonesian laws enjoy the Right of Use only (HakPakai).
Using a Company with foreigner Investment(PMA)
Another way to acquire land in Indonesia is through a PMA. The PMA is a status of doing business in Indonesia. A PMA company has 30 years to operate after formation. It can be granted additional 20 years, and then, another 30 years if it expands its project through additional investment. This can be 100% controlled by a foreigner.
Once you have a PMA status, you will get the Right to Build (HakGunaBangunan – HGB). The right to build or construct a house on a particular land is valid for 30 years. This can be extended for an additional 20 years, and even for another 30 years after that.
If you decide to buy a property in freehold in Bali Island, you will have to choose by 2 different ways:
Buying or Leasing an already built Vila.
Pros: The villa is ready to use and no time or effort is lost to the building and construction process. Also, If you have no time to develop your own design it can be a more-reliable alternative.This is also the best option in the case where there is no land available in the desired area.
Cons: You cannot build the villa that you exactly want and you will probably have to deal with some faults and absence of features in the architecture. Similarly, there may be some features that do not match you desires.
Buying a land and building your dream villa in Bali.
Pros: You can expect to get a perfect design and extend all aspects of personalization to the project.
Cons: Depending on the structure and design, it can take anywhere between 3 to 6 months to build a decent villa.
Irrespective of your choice, you can be rest assured that Vila Bali Tropic will be there to use our professional experience to guide you all the way.
Generally, the conditions precedent to acquiring a property in Bali include:
1. Foreigners use the leasehold and can lease the land/villa for a period total of 70 years (initial term of 25 years + an extension of 25 years + a final renewal of 20 years).
2. Freehold has no limits in the time and the Indonesian Nominee will acquire the land/villa for the foreign buyer. The ownership of the land/villa is transferred from the foreign owner to the Indonesian representative.
**These 2 ways offer you the way to acquire the villa of your dream as a first home, second home or as an investment. Villa Bali Tropic Team will be here to assist you in your project.
The right information at the right moment!
At Villa Bali Tropic, our Team will first analyze your situation and use the service of our Notary and Lawyer to offer you the most complete information.
Because everybody is different, it is important to use a service of a professional team to choose the right way for your project.
We are here to give you the right information and offer you a complete analyze with our professional Team to make your project become true and secure your investment with the law.
At Villa Bali Tropic, this is our responsibility!
Avail yourself of our professional expertise. Contact us today for all your property and real estate needs in Bali ranging from Condos, Homes, Villas, Land plots, or sale, investment or rental now and secure the right property in a heartbeat.
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