Buying land or a villa in Bali as a foreigner: leasehold, freehold and the traps
6 min ·
Freehold, leasehold, Hak Pakai: what a foreigner can actually hold
Freehold land (Hak Milik) can only be owned by Indonesian citizens. A foreigner buys in practice either a leasehold (a long lease, typically 25 to 30 years, often with an extension option, on land that stays with the Indonesian owner) or a right of use (Hak Pakai) granted to a foreigner holding the right residence permit, or through an Indonesian foreign-investment company (PT PMA) for commercial use.
Listings on BaliMarket state "leasehold" or "freehold" and, for leases, the number of years left: the same villa is worth very different amounts with 10 or 28 years remaining.
The nominee trap and other things that go wrong
Using an Indonesian "nominee" to hold freehold in their name for you is not a recognised form of ownership: the courts have repeatedly voided such arrangements and the foreigner ends up with nothing. Be equally careful with land that is not yet certified (girik, letter C), with subak (irrigation) land, with green-zone land where building is not allowed, and with plots that have no legal road access.
A price far below the area median usually means one of these problems. Our market price page shows the median asking price for land and villas by area, measured on live listings.
Due diligence: what a good notary checks
Never sign or pay before an independent notary (PPAT) has checked the land certificate at the land office (BPN), the zoning (RTRW/RDTR), the building permit (PBG, formerly IMB), any mortgage or dispute, and the identity of the real owner. Lease agreements must be notarised and should cover extension terms, sub-letting, the right to sell the remaining years, and what happens at the end of the lease.
Budget for notary fees, taxes and, for leases, the annual land and building tax. Take your time: good properties are not sold in a day, and pressure to pay a deposit fast is itself a warning sign.