Understanding the Bali Market
Bali continues to attract long-term investors thanks to strong tourism fundamentals, high demand for villa rentals, and emerging zones with untapped potential.
But the legal framework remains complex, zoning restrictions are strict, and the market is fragmented.
This guide gives you the clean, factual structure to navigate Bali safely.
1. Where to Buy in Bali
- Canggu / Pererenan → Best for: lifestyle investors, high demand, stable occupancy.
- Uluwatu / Bingin / Ungasan → Best for: capital appreciation, premium villas, surf/luxury.
- Ubud / Tegallalang → Best for: retreats, wellness, unique architecture.
- Sanur / Denpasar → Best for: families, long-term expats, infrastructure.
- Emerging Areas → Best for: long-term land plays at lower entry price.
2. Ownership Options for Foreign Investors
A. Leasehold (Hak Sewa)
- Fixed period 25–30 years
- You own the building, not the land
- Extensions must be contractually defined
- Safest structure for foreigners
B. Nominee Freehold (ILLEGAL)
- Foreigners cannot own SHM
- Nominee structures are illegal and extremely risky
C. PT PMA Freehold (via HGB/HGU)
- Company structure
- Allows long-term building and operational rights
- Suitable for large projects, not always needed for small villas
3. Permits You MUST Understand (PBG, SLF, Pondok Wisata)
- PBG – Building Approval Replaces IMB. Confirms legality and compliance.
- SLF – Certificate of Building Worthiness Mandatory before legally operating a building.
- Pondok Wisata Short-term rental license for villas.
4. Due Diligence — Your Protection Layer
- Certificates (SHM, SHGB, SHP, AJB)
- Zoning (ITR: Residential, Commercial, Agriculture)
- Legal Access (Jalan Hak)
- Boundaries & Measurements
- Debts, taxes, disputes
5. Step-by-Step Buying Process in Bali
- Define criteria
- Shortlist properties
- Legal check (notary + land office)
- Negotiate
- Sign PPJB
- Pay deposit
- Sign AJB
- Registration & handover
6. Taxes & Ongoing Obligations
Buyer:
- BPHTB (5%)
- Notary fees (1–2%)
- Legal fees
- Permit fees
Owner:
- Annual property tax (0.1–0.3%)
- Income tax if renting
- Management fees
7. Risks (And How To Avoid Them)
- Illegal ownership structures
- No due diligence
- Missing permits
- Wrong zoning
- Fake certificates
- Oversupply in some areas
8. Villa Management & Operations
A good management company handles:
- Guest communication
- Pricing
- Maintenance
- Staffing
- Reporting
- Taxes
This page is designed to be the clearest, most complete reference for foreigners investing safely in Bali. If you need personalised guidance, contact our team and we’ll review your project step by step.
