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. Can A Foreigner Buy Property In Bali?

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.

All Legal Options for Foreign Property Ownership in Bali

Most foreign buyers hear about PT PMA and nominee structures, but there is a third option that the majority of foreigners actually use: leasehold. Here is how all three legitimate structures compare:

Structure	Who can use	Term	Best for
Leasehold (Hak Sewa)	Any foreigner	25–30 yrs + extensions	Most foreign buyers — no company required
HGB via PT PMA	Foreign-owned company	30 yrs + 20 + 30	Investors with rental business; strongest legal standing
Hak Pakai	Foreigners with KITAS/KITAP	30 yrs + renewals	Residents; one title per person; size restrictions apply
Nominee (Hak Milik via local)	AVOID	—	Illegal in practice — no legal recourse if disputed

For a deep dive into how leasehold transactions work — including MOU process, extension clause wording, and tax obligations — read our Master Guide to Leasehold Transactions in Bali (2026 Edition).

Step-by-Step: How to Buy Property in Bali as a Foreigner

Regardless of the ownership structure you choose, the buying process follows a consistent sequence. Understanding each phase helps you avoid costly missteps.

Step	Phase	What happens
1	Property search	Identify the property, agree on price, confirm ownership structure with your agent and lawyer
2	MOU signed	Memorandum of Understanding signed; 10% deposit paid into notary escrow — NOT directly to seller
3	Due diligence	BPN title check, zoning (KKPR) verification, PBG/SLF permit review, tax records, survey. Takes 1–3 weeks
4	PT PMA setup (if applicable)	Register company with BKPM via OSS, obtain NIB and NPWP. Takes 2–4 weeks
5	Sale & Purchase Deed (AJB)	Executed before PPAT/notary. Transfer of HGB or signing of leasehold agreement
6	BPN registration	Certificate updated at BPN (National Land Agency) in company or buyer name
7	Handover	Keys, permits (PBG, SLF), property tax records, and all documents transferred to buyer

For the full legal document checklist and a detailed breakdown of each step — including what to verify at BPN and which permits to request — read our complete legal steps guide.

Due Diligence: What to Check Before You Sign Anything

Due diligence is not optional. It is the process that stands between a clean investment and one that will cost you far more than the purchase price. A proper due diligence covers these six areas:

• Title check: Land certificate verification at BPN
• confirm the registered owner, parcel boundaries, and that there are no mortgages, liens or active disputes on the title.
• Zoning check (KKPR/ITR): Confirm land is zoned for your intended use via the KKPR (digital spatial map). Green zone (agricultural) land cannot have permanent commercial structures — regardless of what is already built there.
• Building permit (PBG): Verify the PBG (Persetujuan Bangunan Gedung) — the building permit that replaced the old IMB in 2021. Without a valid PBG, the structure is technically non-compliant.
• SLF certificate: The occupancy certificate confirming the building is safe, meets the approved plans, and is required before a short-term rental license (STRA) can be issued.
• Tax records: Request 5 years of PBB (property tax) receipts to confirm there are no arrears. Unpaid tax can create complications at transfer.
• No liens or disputes: Confirm at BPN that no encumbrances, legal disputes, or mortgages exist against the title.

Due diligence typically takes 1–3 weeks. Your 10% MOU deposit must go into the notary’s escrow account — never directly to the seller — and is protected during this period.

Important: PP No. 18/2021 — Legacy Certificate Deadline
Under Government Regulation No. 18/2021, all legacy land certificates (Girik, Letter C, and similar) were required to be upgraded to official BPN titles by February 2026.
Any property still carrying a Girik or legacy certificate cannot legally be transferred. Verify certificate status at BPN before committing any capital.

Full Cost of Buying Property in Bali: What to Budget

One of the most common mistakes foreign buyers make is budgeting only for the listed price. The true cost of acquiring property in Bali typically runs 8–12% above the headline price. Here is the complete breakdown:

Cost item	Typical rate	Paid by
BPHTB (acquisition tax)	~5% of value	Buyer
PPh (income tax)	2.5%	Seller
Notary / PPAT fees	0.5%–2%	Buyer
Agent commission	~5%	Seller
PT PMA setup (if applicable)	USD 1,500–3,000	Buyer
Independent legal counsel	USD 1,000–5,000	Buyer (recommended)
Total buyer closing costs	~8–12% of price	Budget upfront

Beyond acquisition costs, budget for ongoing expenses: annual PBB property tax, PT PMA compliance costs if applicable, property management fees (typically 20–30% of rental revenue), maintenance, utilities, and insurance. Model the full 5-year picture before committing.

For a comprehensive guide to costs, tips, legal traps, and what every foreign investor needs to know before buying, read our Bali property investment tips guide for foreigners.

Buying Land in Bali as a Foreigner

Purchasing land rather than a built property adds an additional layer of complexity. Foreigners cannot hold Hak Milik (freehold land) directly — but can acquire land-use rights through a PT PMA (HGB title) or through a leasehold arrangement with the landowner.

Key additional checks for land purchases:

• Zoning and KKPR must be verified before any purchase — land zoned agricultural (green zone) cannot have a villa built on it
• Check if the land parcel has ever been used as collateral for a bank loan — these encumbrances must be cleared before transfer
• Survey the physical boundaries against the land certificate — discrepancies between the certificate and actual boundaries are common and create disputes
• Confirm access road rights — some land parcels in Bali have no formal road access, which makes development or resale extremely difficult

For the full guide to land purchases including zoning explained, title types, and the complete acquisition process, read our Ultimate Guide to Buying Land in Bali.

Frequently Asked Questions

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Can foreigners buy property in Bali in 2026?

Yes. Foreigners can legally acquire property in Bali through three structures: leasehold (Hak Sewa), Hak Pakai (Right to Use — requires a valid residency permit), or by establishing a PT PMA company that holds an HGB (Right to Build) title. Freehold (Hak Milik) land ownership is reserved exclusively for Indonesian citizens under UUPA Law No. 5/1960.

What is the safest ownership structure for a foreign property buyer in Bali?

For serious investors planning a rental business, the PT PMA (HGB) structure offers the strongest legal standing — it is a registered company holding a registered land certificate, which can be sold, mortgaged, and inherited. For buyers who do not want to establish a company, a properly structured leasehold agreement with a well-drafted extension clause is the most practical and widely used alternative.

What does a PT PMA cost to set up in 2026?

Under BKPM Regulation No. 5/2025, the paid-up capital requirement has been reduced to IDR 2.5 billion (approximately USD 156,000), while the total investment plan must exceed IDR 10 billion. Professional setup fees typically range from USD 1,500 to USD 3,000 through a local corporate services firm or lawyer.

How long does it take to buy property in Bali?

A clean leasehold deal closes in 4–8 weeks. PT PMA purchases including company formation take 4–12 weeks. Off-plan properties add 12–18 months of construction time. Due diligence — which should never be skipped — adds 1–3 weeks to any transaction.

What is the total cost of buying property in Bali?

Budget 8–12% above the purchase price for transaction costs: BPHTB acquisition tax (~5%), notary and PPAT fees (0.5%–2%), and PT PMA setup costs if applicable. Ongoing annual costs include property tax (PBB), management fees (20–30% of rental revenue), maintenance, and PT PMA compliance costs.

Can I buy property in Bali without being in Bali?

Yes. Many transactions are completed remotely through a Power of Attorney (Surat Kuasa). Your agent, notary, and lawyer manage the process on your behalf. Excel Bali regularly assists international buyers through the entire process from abroad.

What is a nominee structure and why should I avoid it?

A nominee arrangement is when an Indonesian citizen holds the land title on a foreigner’s behalf. While widely practiced, it offers no legal protection — if the nominee disputes the arrangement, Indonesian courts will recognise whoever holds the certificate as the legal owner. It is the single biggest cause of total investment loss for foreign buyers in Bali. The PT PMA structure provides the same access to property without the risk.

Is leasehold safe in Bali?

A properly structured leasehold agreement is a solid and enforceable contract under Indonesian law. The critical factor is the extension clause — your lease must explicitly state the terms, duration, and pricing formula for extensions. Without this clause, you have no legal right to extend when the lease expires. A well-negotiated leasehold with a total term of 50–80 years and clear extension rights is widely used by foreign investors.

Related guides from Excel Bali

→ Master Guide to Leasehold Transactions in Bali (2026 Edition)

→ Buying Property in Bali: Legal Steps You Cannot Skip

→ Bali Property Investment Tips for Foreigners: What to Know Before You Buy

→ The Ultimate Guide to Buying Land in Bali

→ Bali Property FAQ: 20 Questions Every Foreign Buyer Asks