How to Buy Property in Bali? A Brief Explanation

by BVR Property Team
02 November 2023

Acquiring property rights in Bali is quite complex. There are a few property regulations and procedures that we will explain here in order to help you understand how to buy property in Bali. 

 

Let’s go through it with you step by step.

 

Property Rights Foreigners Can Have or Own in Bali

When you’ve decided to purchase a property in Bali, it’s crucial to know and understand what property rights/titles you’re able to obtain in Bali as a foreigner. Knowing this regulation helps you to make property-buying process easier.

 

When foreigners want to start their property investment journey in Bali, a question like “How to buy property in Bali?” often comes up.

 

First thing, please note that not all property titles in Indonesia are available to foreigners. 

 

Here are the property titles that foreigners can look for, whether for non-Indonesian individuals or PT. PMA company set-ups:

 

1. Non-Indonesian Individuals


•    Leasehold titleHak Sewa Bangunan (HSB)
•    Hak Pakai (HP)
•    Hak Milik atas Satuan Rumah Susun (HMSRS)

 

2. PT. PMA


•    Hak Pakai (HP)
•    Hak Guna Bangunan (HGB)
•    Leasehold title – Hak Sewa Bangunan (HSB)
•    Hak Guna Usaha (HGU)
•    Hak Milik atas Satuan Rumah Susun (HMSRS)

 

Buying property rights through a foreign-owned company (PT. PMA) grants you more rights to property for foreigners and generally seen as a much more concrete option. 

 

However, whether you buy as an individual or through PT. PMA, just to make sure you follow these steps below in order to make your buying property process as smooth as butter.

 

How to Buy Property in Bali? (Step by step)

enjoying property in bali

No matter which property rights you choose to own, here are the steps on how to buy property in Bali:

 

1. Property Law in Bali

The first step in the property-buying process is comprehending how to buy property in Bali by understanding the property law that applies.

 

It’s helpful for you to know what property titles you can buy in the Land of Gods. As a part of Indonesia, the regulations in Bali refer to Agrarian Law (Hukum Agraria).

 

According to the Agrarian Law, foreigners can safely and lawfully buy certain property titles in Bali. Finding out the property regulations is the first advisable step for you in order to know the next steps you should take.

 

2. Establish Your PT. PMA (Optional step)

If you want to buy a property in Bali as a non-Indonesian foreigner that doesn’t require a PT. PMA, you can skip this step and go to step 3.

 

However, if you want broader options for property rights or if the property rights you seek necessitate PT. PMA, establishing a valid PT. PMA can be a good decision for you.

 

You have an option to establish your PT. PMA through a reputable government institution that is responsible for this setup. The institution is the Indonesian Investment Coordinating Board (BKPM). Alternatively, you can seek help through an agency to facilitate the PT. PMA set up process.

 

3. Find a Dream Property to Buy

After you understand the property regulations, the next step is finding a dream property in your desired location. Here, you’ll do research on properties available in Bali – location, price, amenities, and size.

 

Best to already know what it is you looking for as Bali has a wide and abundant variety of properties available.

 

You can choose the property that’s most suitable for your:

 

•    Your “why” of having a property in Bali. Is your “why” driven by lifestyle, investment goals, or residential purposes in Bali?

•    What type of property do you want? Whether it’s land, villa, or apartment developments.

 

After you have your answers, then you can learn how to buy property in Bali and choose the property you want.

 

Sometimes, doing research can be time-consuming. The easiest way for this step is to collaborate with a trustworthy property agency in Bali. There, you can access property listings effortlessly.

 

4. Complete the Property Due Diligence Report

Completing the Property Due Diligence Report is necessary after you decide which property you want to have.

 

A appointed notary will be responsible to ensure that all the paperwork that’s provided are valid and that there are no incumbrances when it comes to transferring the rights or lease to the new owners.

 

We can say, this is the most vital step for you to do.

 

This process assures that you are safe, and that there are very little risk involved, also any and all property scams.

 

Working with a trustworthy and reputable property agency in Bali is vital. They can streamline the process and make sure all the necessary documentation is in place upon signing a Letter of Intent, Offer to Purchase or MOU.

 

The agency will have these documents on hand in order to make the process a little easier, so this is where a professional real estate company’s assistance makes a big difference.

 

After the request is completed and all the documents are provided, you can negotiate regarding the contract duration and price.

 

Here, you can use professional assistance from a property agency to make the process smooth.

 

5. Sign and Offer Agreement/MOU and Transfer a Down Payment

After you’ve negotiated the terms and conditions on the property, land, and a valid offer, MOU or letter of intent has been signed by all parties.

 

A general rule of thumb will be that a 10% deposit is paid to your chosen notary bank account to hold the property while the due diligence is being completed.

 

Your next step is waiting for the due diligence “clear” report from your notary. The next step is signing the Sales Purchase Agreement – a legal document that attaches your and the landlord’s responsibilities in the property transaction.

 

The Sales Purchase Agreement requires the signatures both from you (buyer) and the property owner (seller), in the presence of an authorized public notary for the area (PPAT).

 

6. Pay the Remaining Payment

After the certificate is acquired and verified by PPAT, you can finalize the payment and sign the Deed (sales and purchases agreement). The signing process must be done with the presence of a public notary.

 

7. Sign the Transfer Leases or Deed Transfer

The property-buying process is almost done! This is the final step in understanding how to buy property in Bali.

 

In this step, you’ll sign the transfer leases (for leasehold rights) or the deed transfer will take place from the previous titles owner (for Hak Milik, HGB, and Hak Pakai).

 

After that, you’re officially obtain the property rights on your title.

 

We Make the Process Simple for You!

Owning a slice of paradise is a simple and effortless if you understand on how to buy property in Bali. Additionally, work with the right agency to help streamline the entire experience.

 

Let us help you make the best and most informed decisions, run through the process and help you with your Bali property dreams.

 

Contact us for more information!

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