Can Foreigners Own Property In Bali – 2022 Guide

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Bali is a popular tourist destination which is why it is normal for people to be curious about the real estate opportunities in the location. If you have ever wondered whether you can own property in Bali as a non-resident, this article is here to answer all your questions.

Bali has become famous across the globe as more and more foreigners are investing their money in real estate. There are several different ways in which ownership is managed by foreigners in this location and we will take them all one by one. Property ownership can be a little tricky in Bali so we will also tackle some problems and solutions.

The Risky Business

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The most common and risky way of acquiring property in Bali is done through a local nominee. This is more common than you may think and leads to virtually nose security for the foreigner. This is a very prevalent way in which people invest their money in a real estate property by making it go through an Indonesian resident.

The land is thus registered under the name of that local nominee who can back off at any given time which will give no security to the foreigner and they stand to lose all their money. By the end of the day it is the local resident who will own property and not the foreigner so the entire business is just highly risky.

If you want to go about acquiring property in a foreign land in a safe way, there are ways to help yourself out. Bali Real Estate is not difficult to acquire if you know the laws and want to follow the safe way. You can visit Penidaland.com to invest your money through a legitimate source.

Laws of Ownership in Bali

When it comes to land ownership in Bali there are three main laws which dictate how one can legally acquire the rights of any property. It includes:

  • Right to Own or Hak Milik
  • Right to Use or Hak Pakai
  • Right to Build or Hak Guna Bangunan

Since we have already established that sending money to a nominee will not be the safest bet, it is time to choose the right way to go about the process.

Through a Foreign Owned Company

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If you are a foreigner the safest way in which you can invest your money in real estate in Bali is through foreign owned company. This type of ownership will fall under the Right to Build category and will be perfectly legal for you as a foreign national. There is a very specific foreign limited liability company which is based in Bali and other areas of Indonesia.

Once you take their help and make a formal affiliation it will be easy to acquire both Right to Use and Right to Build certifications. The certifications will stand as legal proof that you own property in Bali. You can only have these two certifications because the third one (Right to Own) is only reserved for Indonesian residents.

Once you have successfully acquired these two certificates it can be handed down as inheritance within your family. The land will also be sold in your name if you plan to do so in the future. After 8 decades of owning the property in Bali, one would have to get a new certificate issued because the old one will expire by then.

Know the Limitations

Now that we have answered the question of owning property in Bali as a foreigner, you also need to understand certain limitations. The Right to Use certification can only be attained if the land one invests in already has a building. Additionally if your property deal is created between the seller and your business, there are limitations to consider.

When it comes to the geographical location of the property, there are some limitations as well. For instance, the sale of agricultural land to foreigners is not allowed by law. As a non citizen, you can only buy a property located in a trading, residential, or tourist place. The law also mandated that there be a minimum value below which it will not be sold.

If one is acquiring property through the Right to Build certification, they can go forth with multiple acquisitions. However, under the Right to Use certification, one can only buy a single property because it is meant for personal use.

Follow the Process

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To acquire property via either of the certificate mentioned above you will need to follow all the steps mentioned below:

  • Contact a representative who will submit completed forms on your behalf. These forms are submitted to acquire either of the two certifications with all the attached documents that are required to be submitted by law.
  • One should be ready with proof that all the legal eligibility requirements are fulfilled for either the Right to Build or Right to Use.
  • If you have gone with the Right to Build, you would also have to apply for an adequate building permit.
  • The authorities will then issue the certification in your name or under the name of the organisation you represent.

It is easy to be misled with the process of having to use a local nominee. However, it is not at all necessary and even risky in terms of finance and your reputation. The legal process may be longer but it will be worth it because you will finally get property in your name. As long as you are willing to provide all the documents and proofs do not hesitate to follow the legal process and acquire all the certificates.

The Takeaway

In conclusion, we can say that it is possible for foreigners to own property in Bali legally. The laws are different for foreign nationals and Indonesians. There are only two ways in which one can acquire legitimate certification of ownership. One will need to fill out forms and submit documents. Once done, the property will be registered in your name.