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How Foreigners Can Legally Buy Property in Bali in 2025

Investing in property in Bali is a dream for many foreigners. With its booming tourism, tropical climate, and vibrant lifestyle, it’s no wonder Bali continues to attract international investors. But can foreigners legally buy property in Bali in 2025? The answer is yes, but it must be done the right way to stay compliant with Indonesian regulations.

Understanding Indonesian Property Law for Foreigners

Indonesian law does not allow foreigners to directly own freehold land. However, there are legal structures that enable foreign nationals to control and profit from property in Bali, including:

  • Leasehold agreements (Hak Sewa): Long-term leases, typically ranging from 25 to 30 years, extendable up to 80 years.
  • Right to Use (Hak Pakai): This title allows foreigners to use the land under certain conditions.
  • Setting up a PMA (Penanaman Modal Asing): A foreign-owned company in Indonesia that can legally own property under the Right to Build (Hak Guna Bangunan).

Each structure comes with its own legal implications and tax responsibilities, so it’s crucial to choose the one that suits your investment goals.

The PMA Company Route: A Strategic Option

As of 2025, the most secure and flexible method for foreign property ownership is through a PMA company. A PMA allows you to:

  • Purchase land and property under the company name.
  • Apply for a Building Approval Permit (PBG) and SLF (Certificate of Worthiness).
  • Operate a rental or hospitality business legally.

This structure is ideal for those planning to invest in villas, guesthouses, or commercial properties for rental income.

What’s New in 2025?

Indonesia continues to encourage foreign investment by streamlining regulations. In 2025, updates include:

  • Faster company registration via the OSS system.
  • Easier licensing for villa rentals.
  • Clearer guidelines for obtaining PBG and SLF documents.

These updates make it easier than ever for foreigners to enter the property market legally and profitably.

While foreigners cannot directly own freehold property in Bali, there are fully legal methods to invest and profit from property in paradise. Understanding the right ownership structure is key to a smooth investment journey.

Free Consultation with Indoned Consultancy

Need expert guidance on investing in Bali real estate? Book a free consultation with Indoned Consultancy. We specialize in helping foreigners navigate the legal, tax, and administrative landscape of property investment in Indonesia.

Disclaimer

The information provided here is based on our long experience. The process or requirement may vary depending on the specific facts and conditions. Besides, the law and regulations in Indonesia subject to frequent changes. Please contact us as your consultant to get an up to date information and accurate advice. More Information click here and You can also follow our social media accounts to see the latest information posts. please click on the following links: Facebook, Instagram, Linkedin, and Twitter.

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