Bali property and bali villas for sale - company structures that can be established in order to purchase bali property company structures for buying property in bali: pt pma guide (2026)

Company Structures for Buying Property in Bali: PT PMA Guide (2026)

Table of Contents

Company structures for buying property in Bali are relevant for foreign investors who want the strongest legal protection and the ability to operate a commercial rental business. The primary company structure used by foreign buyers in Bali is the PT PMA (foreign-owned company), which holds land under an HGB (Right to Build) title. This guide explains how it works, what it costs in 2026, and how it compares to the two non-company alternatives available to foreigners.

For a complete overview of all ownership options available to foreign buyers including leasehold and Hak Pakai, read our complete guide to buying property in Bali as a foreigner.

Company Structures Available for Foreign Property Buyers in Bali

There are three legitimate routes for foreign buyers to hold property rights in Bali. Only one involves a company structure:

Structure	Type	Who can use it	Best for
PT PMA	Company (foreign-owned)	Any foreigner	Investors, rental business, strongest legal standing
Leasehold (Hak Sewa)	Personal agreement	Any foreigner	Personal villas, first-time buyers, lower cost
Hak Pakai	Personal title	Foreigners with KITAS or KITAP	Long-term residents, personal residential use

Two other company types — Local PT (with nominee) and CV (limited liability partnership) — are sometimes mentioned in older guides but are not recommended for foreign property buyers. Local PT nominee arrangements are illegal under Indonesian Investment Law and Agrarian Law and offer no legal protection. CV structures require all partners to be Indonesian citizens.

PT PMA: The Primary Company Structure for Foreign Property Investors

A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a foreign-owned limited liability company registered under Indonesian law. For property purposes, the PT PMA holds an HGB (Hak Guna Bangunan or Right to Build) title — a registered land certificate in the company’s name that can be sold, mortgaged, transferred, and inherited.

2026 PT PMA capital requirements

Under BKPM Regulation No. 5/2025, the requirements have been updated:

Requirement	Amount
Minimum paid-up capital	IDR 2.5 billion (approximately USD 130,000)
Total investment plan	Must exceed IDR 10 billion
Company setup cost	Approximately USD 1,500 to 3,000
Annual compliance cost	Approximately USD 500 to 1,500
HGB title term	30 years, extendable for 20 then 30 more years (up to 80 years total)

Benefits of buying property through a PT PMA

Strongest legal standing: The HGB title is a registered government land certificate, fully recognised under Indonesian law and enforceable in Indonesian and international courts.
Transferable by shareholding update: To sell the property, you update the company’s shareholder structure. No land certificate transfer required — makes resale to another foreign buyer straightforward.
Can be mortgaged: HGB titles held by PT PMA can be used as collateral for financing, unlike leasehold agreements.
Required for commercial rental operations: Under PP No. 28/2025, operating a formal short-term rental business (Pondok Wisata or STRA license) requires a PT PMA with the correct KBLI business classification code.
Foreign shareholders and directors permitted: Both foreign and Indonesian nationals can serve as shareholders, directors, and commissioners.
KITAS eligibility: All shareholders, directors, and commissioners are eligible for work permits, enabling foreigners to live and work in Indonesia under company sponsorship.
Income and dividends: Rental income can be received into the company and distributed as dividends to shareholders.
BKPM regulated: The company is registered with and audited by the Indonesian Investment Coordinating Board, providing a verifiable legal entity with an official tax number (NPWP).
No limit on assets: A PT PMA can own or lease multiple properties with no restriction on the number of assets included.

Considerations before setting up a PT PMA

Higher upfront cost than leasehold due to company setup fees and paid-up capital requirement
Ongoing annual compliance and accounting obligations
More complex administrative process than a personal leasehold agreement
The IDR 2.5 billion paid-up capital must be deposited into the company’s Indonesian bank account

Leasehold: The Non-Company Alternative

Leasehold (Hak Sewa) is the most common ownership structure used by foreign buyers in Bali and does not require a company. A properly notarised leasehold agreement gives the foreign buyer the right to use and develop the property for a fixed term, typically 25 to 30 years, with negotiated extension options. Total lease terms of 50 to 80 years are achievable with correct legal drafting.

Leasehold is the right choice for buyers who want a simpler, lower-cost entry without the administrative obligations of running a company. It is not the right structure for buyers who plan to operate a formal short-term rental business under Indonesian licensing requirements.

For a complete guide to how leasehold transactions work in Bali including MOU process, extension clause drafting, and tax obligations, read our master guide to leasehold transactions in Bali.

Hak Pakai: The Personal Title Option for Residents

Hak Pakai (Right to Use) is a personal land title available to foreigners who hold a valid Indonesian residency permit (KITAS or KITAP). It is not a company structure — it is a registered government title in the individual’s name. One title per person, with a 30-year term renewable twice (up to 80 years total). Maximum land size is 2,000 sqm.

Hak Pakai is suitable for long-term residents who want a registered title in their own name for personal residential use. It is not suitable for commercial rental operations and is less liquid at resale than PT PMA structures.

For more details on Hak Pakai eligibility and the conversion process, read our Hak Pakai certificate guide.

Which Structure Is Right for You?

Your situation	Recommended structure
Investor planning short-term rental income	PT PMA with HGB title
Developer or multi-property investor	PT PMA with HGB title
First-time buyer, personal villa, no rental business	Leasehold (Hak Sewa)
Long-term resident with KITAS or KITAP	Hak Pakai or leasehold
Budget-conscious buyer in emerging area	Leasehold with long negotiated total term

Before committing to any structure, verify all legal checks in our Bali property due diligence checklist to ensure the title and ownership arrangement are legally sound.

Frequently Asked Questions

What is the best company structure for buying property in Bali as a foreigner?

The PT PMA (foreign-owned company) is the strongest and most legally secure company structure for foreign property buyers in Bali. It holds an HGB (Right to Build) title which is a registered government land certificate, fully transferable and eligible for use as mortgage collateral. It is also the required structure for operating a formal commercial rental business under 2026 regulations.

How much does it cost to set up a PT PMA in Bali in 2026?

Under BKPM Regulation No. 5/2025, the minimum paid-up capital is IDR 2.5 billion (approximately USD 130,000). Professional setup fees typically range from USD 1,500 to 3,000 through a local corporate services firm or lawyer. Annual compliance costs run approximately USD 500 to 1,500 per year.

Can a PT PMA own multiple properties in Bali?

Yes. A PT PMA can own or lease multiple properties with no restriction on the number of assets held. This makes it the preferred structure for portfolio investors and developers operating across multiple sites.

Do I need a PT PMA to rent out my Bali villa?

For operating a formal short-term rental business with a Pondok Wisata or STRA (short-term rental accommodation) license, a PT PMA with the correct KBLI business code is required under PP No. 28/2025. Individual leasehold holders can generate informal rental income but face more restrictions on licensed commercial operation and revenue reporting.

Related guides

Disclaimer

This article is intended as general information only and does not constitute legal or tax advice. Indonesian property and company law is complex and subject to change. Always consult a qualified Indonesian property lawyer, notary, or corporate services firm before establishing any company structure for property acquisition in Bali.