Bali Property: 5 Questions Foreign Buyers Always Ask
After 20 years of working with foreign buyers in Bali, we have heard the same questions come up again and again. Not because buyers aren’t doing their research — but because these are genuinely the points where the process gets confusing, and where getting the answer wrong can cost you significantly.
Here are the five questions we get asked most often, with honest, practical answers.
Question 1: Is it better to lease land in my own name or through a company?
This is one of the most common questions we receive, particularly from buyers who already have or are winding down a PT PMA company.
The short answer: leasing in your personal name as a foreign individual is completely valid. A personal leasehold (Hak Sewa) is legally recognised in Bali and does not require a company structure. The key is ensuring the agreement is properly notarised and ideally registered with the land office (BPN) for added protection.
If you have an active PT PMA, there can be tax and flexibility advantages to leasing through the company — it is worth a quick conversation with a property lawyer before deciding. But if you are not running an active company and do not plan to, a personal leasehold is the simpler and lower-cost route.
| Personal leasehold vs PT PMA — quick comparison |
|---|
| Personal name (Hak Sewa): Simpler process, no company admin costs, no paid-up capital requirement. Best for personal use villas, expat living, and retirement homes. |
| PT PMA (company): Stronger legal standing, commercial flexibility, ability to operate a formal rental business. Best for investors planning rental income or long-term commercial use. |
| Key for both: The lease agreement must be properly notarised. Without notarisation, the agreement has limited legal enforceability. |
For a full breakdown of all ownership structures available to foreigners including 2026 regulatory updates, read our complete guide to buying property in Bali as a foreigner.
Question 2: Do I need a building permit for a simple garage, studio or pool?
In most cases, yes. This is an area where a lot of buyers get caught out by partial information.
The IDR 1 billion figure that sometimes circulates relates to tax reporting thresholds — not an exemption from needing a PBG (Persetujuan Bangunan Gedung, the building permit that replaced the old IMB in 2021). The two things are separate and should not be confused.
Rules vary by regency (Badung, Gianyar, Tabanan etc.) and by the zoning of your specific land. The safest approach is always to check with the local DPMPTSP office or engage a permit specialist for your specific plot before starting any construction — including what might seem like minor additions.
| Why getting this right early matters |
|---|
| A property without a valid PBG cannot obtain an SLF (occupancy certificate). Without an SLF, you cannot legally obtain a short-term rental license (STRA or Pondok Wisata). This affects both your ability to operate commercially and the resale value of the property. |
| Getting the permits in place from the start is significantly cheaper and faster than trying to retroactively legalise an unpermitted structure. |
For more detail on the full permit process including PBG and SLF requirements, read our guide to Bali property legal steps.
Question 3: What should I check before making an offer on a listing?
Before you make an offer — or sign anything — there are five things that must be verified:
- Land certificate at BPN: Confirm the registered owner, boundaries, and that no mortgages or disputes exist on the title. Request the printout directly from BPN — do not rely on a copy from the seller.
- Zoning (KKPR): Confirm the land is zoned for your intended use via the Gistaru map or OSS portal. Green zone agricultural land cannot be developed for tourism or residential use regardless of what is already built there.
- Building permits (PBG): Confirm the existing structure has a valid PBG. If it was built before 2021, ask whether the old IMB was converted.
- SLF certificate: Confirms the building is legally occupiable and is required for short-term rental licensing.
- Certificate type: SHM or SHGB are clean. Girik or letter C legacy certificates cannot be transferred after February 2026 — walk away or require the seller to complete the BPN upgrade first.
Your agent should flag any of these issues before you commit a deposit. At Excel Bali we review all of these points as part of our standard process before recommending a property to a buyer.
For the full due diligence checklist, read our guide to buying land in Bali.
Question 4: How quickly can a deal close once I find the right property?
Faster than most buyers expect — if the due diligence comes back clean.
- Leasehold deal, clean title: 4–8 weeks from MOU to signed agreement and BPN registration
- PT PMA purchase (company already exists): 4–8 weeks
- PT PMA purchase (new company needed): 6–12 weeks including company formation
- Legacy certificate requiring BPN upgrade: Add 4–8 weeks minimum
- Off-plan property: Add 12–18 months construction time on top of the legal process
The most common causes of delay are: due diligence issues that require resolution, a seller who is slow to produce documents, and PT PMA formation taking longer than expected. Having an experienced agent coordinating between all parties — notary, lawyer, seller, and BPN — is the single biggest factor in keeping a transaction on track.
Question 5: Can I view properties and complete a purchase remotely without visiting Bali?
Yes — and it happens regularly. Many of our buyers complete the entire process from abroad through a combination of video walkthroughs, virtual site visits, and a Power of Attorney (Surat Kuasa) that allows our team and your notary to act on your behalf during the transaction.
That said, for a land purchase specifically, we strongly recommend at least one physical visit before committing. Satellite images and video do not capture road access conditions, ground-level boundary issues, neighbouring developments, or flooding risk — all of which matter significantly to the long-term value of your investment.
For built properties — villas, commercial units, or off-plan purchases — a remote transaction with thorough documentation is entirely manageable and something we assist with regularly.
Have a question we haven’t covered?
Our master guide to leasehold transactions in Bali covers every step of the process — from due diligence to legal documents to taxes — all in one place, no jargon.
Or drop your question directly to the team:
Karl: +62 815-5701-729
Siska: +62 815-5749-228
Email: info@excelbali.com