What is the difference between leasehold and freehold property in Bali?
The key difference between leasehold property in Bali and freehold property in Bali is ownership rights. Freehold property grants full ownership of the land and buildings indefinitely, but it is only available to Indonesian citizens. On the other hand, leasehold property in Bali allows foreigners to lease the land for a fixed period, typically 25 to 30 years, with the option to extend.
How can I purchase property in Bali as a foreigner?
Foreigners cannot directly own freehold property in Bali, but they can legally invest in buying property in Bali through various methods.
The most common ways to purchase property in Bali as a foreigner include:
- Using a Hak Pakai (Right to Use) title under an Indonesian-registered company (PT PMA).
- Leasing property under a leasehold agreement.
- Setting up a local partnership with an Indonesian citizen.
How much are property taxes in Bali?
When purchasing or selling real estate, several property tax Bali regulations apply, including.
- Buyer’s Tax: Typically around 5% of the property prices in Bali.
- Seller’s Tax: Capital gains tax of 2.5%.
- Notary Fees: Usually 1-2% of the transaction value.
- VAT (Value-Added Tax): Applicable for new properties or those sold by developers.
What is the process for purchasing property in Bali as a foreigner?
The Bali real estate market offers great opportunities for foreigners, but purchasing property requires following a structured process:
- Legal Consultation: Understanding foreign property ownership laws and selecting the right ownership structure.
- Due Diligence: Ensuring the property has a clear title and proper documentation.
- Agreement & Payment: Signing the sales contract and making payments through an escrow account.
- Final Registration: Completing the necessary legal filings to secure your rights over the property.
Since foreign property ownership in Indonesia is regulated, it is advisable to work with a reliable property agency and legal expert when making a purchase.
What additional fees should I expect when purchasing real estate in Indonesia?
The Bali real estate market offers great opportunities for foreigners, but purchasing property requires following a structured process:
- Legal Consultation: Understanding foreign property ownership laws and selecting the right ownership structure.
- Due Diligence: Ensuring the property has a clear title and proper documentation.
- Agreement & Payment: Signing the sales contract and making payments through an escrow account.
- Final Registration: Completing the necessary legal filings to secure your rights over the property.
Since foreign property ownership in Indonesia is regulated, it is advisable to work with a reliable property agency and legal expert when making a purchase.
Does BVR Property offer after-sales support?
BVR Property, as the best property agent in Bali, is a fully integrated business that offers clients an array of services and after-sales advice and guidance.
For more information or guidance contact out team at
www.bvrproperty.comDoes BVR Property offer property management services in Bali?
Yes, BVR Property offers property management Bali services through its division, BHR – Bali Holiday Rentals. BHR provides comprehensive solutions, delivering some of the best property management services in Bali to ensure your investment is well-maintained and generates optimal returns.
For more information or guidance contact out team at
www.bvrproperty.comCan BVR Property assist with legal matters related to property transactions?
Yes, absolutely. BVR Property can assist with legal matters as it is a division of BVR Group Asia that specializes in Bali property real estate and has a dedicated legal team ready to support you throughout the transaction process.
For more information or guidance contact out team at
www.bvrproperty.com