Can A Foreigner Buy Property In Bali? The 2026 Complete Guide

Bali is a popular holiday and travel destination. However, a growing number of foreigners are investing in Bali by purchasing property.

In 2026, the question “Can foreigners legally buy property in Bali?” is no longer debated. Now it is a matter of choosing the correct legal structure. With the enactment of Government Regulation (PP) No. 28 of 2025, Indonesia has overhauled its business licensing system, making transparency and digital compliance the new standard.

Foreigners can acquire property in risky ways. Foreign investors often use a nominee to purchase a property, which provides little protection for their investment. This article explains how to purchase property through a foreign-owned business (PT PMA).

Bali Property Ownership for Foreigners

Law 5 of 1960 regulates property ownership and real estate in Indonesia. It includes three types of rights that are relevant to this article:

• Right to Own (Hak Milik).
• Right to Build (Hak Guna Bangunan/HGB).
• Right to Use (Hak Pakai).

Many foreign investors believe that the way to buy property in Bali is to use an Indonesian citizen (a nominee) to obtain the Hak Milik Certificate. It is, however, a risky arrangement as the local nominee legally owns the property. Under this structure, foreign buyers cannot legally protect their investment.

Why You Should Not Buy Property with a Local Nominee

Foreign nationals, or even local companies, cannot acquire Hak Milik (land ownership also known as freehold). Many foreign investors believe that they must use local nominees. However, this is not necessary. You can purchase Hak Guna Bangunan or Hak Pakai from your own PT PMA company.

Sometimes, foreign nationals believe they have found someone they can trust 100% and that it is easier to purchase land under their name. Although you may have complete trust and the local person might have the best intentions, it remains a risky investment as you will not have legal rights to the property.

Human relations can change, and the trustee could also be affected by external factors. Divorce and marriage are possible scenarios where external parties may not have the same intentions as you. Trusting an unreliable nominee for your investment is considered one of the biggest mistakes foreign investors in Indonesia make.

How Foreigners Buy Property in Bali under PP No. 28/2025

Indonesia’s Government Regulation No. 28/2025 marks a shift toward a strict, data-driven workflow. This regulation integrates every aspect of property ownership—from land-zoning to building approvals—into a single digital trail within the OSS (Online Single Submission) system.

• The “Risk-Based” Framework: Under this law, property development is categorized by risk. By using a PT PMA, investors gain a formal corporate identity recognized by the central government, ensuring permits are legally tied to the company’s tax ID (NIB).

• Digital Zoning (KKPR): Under PP 28/2025, your property must be linked to a digital spatial map. This ensures the land is pre-verified for your specific business activity (KBLI) before funds are committed.

PT PMA vs. Nominee Structures

The nominee structure is often used for married couples rather than foreign investment. While common, many foreigners have lost property during disputes because they lack legal rights to the land.

The PT PMA (Foreign-Invested Company) is a legal structure for foreigners to purchase property rights in Bali or Lombok. BKPM regulates this alternative, which includes requirements for paid-up capital used for business operations. While a foreigner cannot own land individually in Indonesia, a company can, giving the investor direct rights to the property without a nominee.

2026 Capital Requirements for PT PMA

A major 2026 update for investors is the reform of PT PMA capital requirements under BKPM Regulation No. 5/2025:

• The IDR 2.5 Billion Rule: While the total investment plan must still exceed IDR 10 Billion, the mandatory paid-up capital (the amount actually deposited) has been reduced to IDR 2.5 Billion.

• Capital Efficiency: This allows investors to keep more liquidity for construction and marketing rather than holding idle cash in a bank account.

The Role of HGB (Right to Build) in 2026

In the 2026 legal framework, the HGB (Hak Guna Bangunan) via a PT PMA is the functional equivalent to freehold ownership available to foreigners for investment purposes.

• Control & Inheritance: An HGB title held by a PT PMA is a registered land certificate. It can be sold, mortgaged, and transferred to heirs by updating the company’s shareholding structure.

• Commercial Legitimacy: For those intending to generate rental income, PP 28/2025 mandates that only a legal entity with the correct KBLI can legally operate a hospitality business.

How to Buy Property in Bali

To acquire property through a PT PMA, investors generally follow these steps:

1. Submit Forms: Send completed forms and supporting documents to the Indonesian National Land Office (BPN).
2. Proof of Payment: Provide proof of land payment to be eligible for HGB or Hak Pakai.
3. Building Permit: Obtain the appropriate building permit (PBG).
4. Certification: The BPN issues the certification under the company name.

Buying Property in Bali: A summary

Whatever method you decide to use to go about buying a villa in Bali, Excel Bali can help you navigate the entire process from beginning to close to make the journey as simple as possible for you. Foreigners must be keenly aware of the specific land titles involved—whether it is Freehold, Right of Use, or Leasehold—as these dictate the long-term security of the investment.

n the current market, the focus for international investors has shifted toward “Asset Integrity”. With stricter enforcement of land-zoning, building permits, and environmental standards under PP 28/2025, buyers increasingly prioritize “clean” assets backed by a digital NIB and a clear tax history. Our professional, knowledgeable team of agents is here to guide you through every detail, turning your vision of owning a home in Bali into a secure reality.

Can’t find what you’re looking for?

The Bali market is unique—your search should be, too. Navigating local regulations and island nuances requires more than a database; it takes decades of experience.

Share your vision with us, and we’ll help you find the right path forward.

Share your requirements