Freehold vs Leasehold in Bali: What Foreign Buyers Must Know Before Purchasing 

Freehold vs Leasehold in Bali - When you decide to buy property in Bali, one of the first terms you’ll come across is the difference between freehold and leasehold property in Bali. 

Understanding these two ownership types is essential before making any investment decision, especially as a foreigner.

So, what’s the difference? And which one suits your goals better?
Read more:
https://bvrproperty.com/blogpost/Why-Buy-Property-in-Bali https://bvrproperty.com/blogpost/Bali-villas-for-sale-investment-opportunity 
https://bvrproperty.com/blogpost/buying-property-in-Bali-guide 

1. What Is Freehold Property in Bali?

Freehold (locally known as Hak Milik) means you fully own the land and property without a time limit. It’s the most complete form of ownership in Indonesia.

However, under Indonesian law, foreigners cannot directly own freehold property in Bali. Freehold ownership is only available to Indonesian citizens. That said, some foreign investors use nominee structures, but this method carries legal risks and is not always recommended.

Ideal for: Local Indonesians or foreign investors working with legal advisors and secure structures.

2. What Is Leasehold Property in Bali?

Leasehold (Hak Sewa) means you’re leasing the property for a fixed period—usually 25 to 30 years, with the option to extend. You don’t own the land, but you have full legal rights to use the property during the lease.

For many foreigners, this is the most secure and straightforward way to invest in Bali real estate. Leasehold properties are also typically more affordable than freehold ones, making them ideal for vacation homes, retirement residences, or rental investments.

Ideal for: Foreigners who want legal ownership, clear agreements, and fewer legal complexities.

3. Key Differences at a Glance Between Freehold vs Leasehold Properties

4. Can Foreigners Own Property in Bali at All?

Yes, but not freehold directly! Foreigners can legally buy leasehold property in Bali or invest through a PT PMA (foreign-owned company) to secure Hak Guna Bangunan (Right to Build) or Hak Pakai (Right to Use). 

These are legitimate, government-approved ways to hold ownership rights in Bali. At BVR Property, we help guide international buyers through these options safely and transparently.

5. Which One Should You Choose?

Choosing between freehold vs leasehold in Bali depends on your purpose:

• Looking for long-term security and you’re an Indonesian citizen? → Go Freehold.
  
  

• You’re a foreigner looking for a vacation home, retirement villa, or rental investment? → Leasehold is the best fit.
  
  

• Planning large-scale investments? → Consider forming a PT PMA.

Invest with Confidence – BVR Property Can Help You Navigate Freehold vs Leasehold

Whether you're buying a private villa or exploring land development opportunities, understanding ownership rights in Bali, especially the differences between freehold vs leasehold is the first step toward a secure investment.

At BVR Property, we specialize in helping foreign buyers make confident, informed decisions in the Bali real estate market.

• Explore our leasehold listings 

• Contact our property experts for a free consultation!