ColumnsHow to successfully buy real estate in bali as a foreigner

How to Successfully Buy Real Estate in Bali as a Foreigner

Are you dreaming of owning a piece of paradise in Bali? As a foreign buyer, the process of purchasing real estate in Bali can ...

Jorben Saaltink
22 Jan 2023 - 4 min read

How to Successfully Buy Real Estate in Bali as a Foreigner

Are you dreaming of owning a piece of paradise in Bali? As a foreign buyer, the process of purchasing real estate in Bali can seem daunting, but with the right knowledge and guidance, it can be a smooth and successful experience. From understanding local laws and regulations to navigating the cultural differences, there are several key factors to consider when buying property in Bali as a foreigner. In this article, we will provide an in-depth guide on how to successfully buy real estate in Bali as a foreigner, including tips and insider knowledge to help you make informed decisions. So, whether you're looking for a luxurious villa, a quaint beach bungalow or a prime piece of land, read on to learn how you can make your dream of owning property in Bali a reality.

Navigating Foreign Ownership Regulations, Property Purchase Process, Legal Representation, and Due Diligence for Real Estate in Bali

Buying real estate in Bali as a foreigner can be a daunting task, but with the right information and guidance, it can also be a rewarding experience. This website provides information on foreign ownership regulations, the property purchase process, legal representation, and due diligence.

Foreign Ownership Regulations

The Indonesian government has strict regulations regarding foreign ownership of property. These regulations vary depending on the type of property and the location of the property. In Indonesia you have multiple ownership titles “Freehold”, “Leasehold”, “Right to build”. Each requires a different structure as a foreigner to own the property.

Property Purchase Process

The property purchase process in Bali can be complex and time-consuming. It’s required to have knowledge about the Indonesian laws and regional laws. The including information on how to find the right property, how to negotiate the purchase price, and how to complete the transaction using the notary and your lawyer.

Legal Representation

It is highly recommended for foreign buyers to have legal representation during the property purchase process. How to find a qualified and trustworthy lawyer and notary in Bali, and what to expect during the legal process.

Due Diligence

Due diligence is an important step in the property purchase process, and it is crucial for foreign buyers to thoroughly research a property before making a purchase. Types of due diligence that should be conducted, including property title research, destination plan of the land, inspections, and how to access the necessary resources.

Navigating the Property Market with Confidence: A Guide to Financing, Agencies, Inspections, and Negotiations

One of the most important steps in successfully buying real estate in Bali as a foreigner is to have a clear understanding of the local market, culture and the various options available to you. To assist in this process, we provides detailed information and resources for foreign buyers looking to purchase property in Bali.

Financing options

The various financing options available to foreign buyers, including traditional bank loans, mortgage loans, and developer financing. Having the required credit score might be required as well as proof that you have the skill set to run it if the property is for hotels or villas exploitation.

Real estate agencies

Having a serious and profesional real estate agent in Bali is important. Dealing with a real estate agent who is in direct contact to prevent multiple fees for multiple agents. They do have to have expertise on their areas of expertise, past projects, and customer reviews. When you have these serious real estate agents in the area, it’s nice to have a good agency-buyer relationship.

Property inspections

What to look for during a property inspection and how to ensure that the property is in good condition before making a purchase. It’s important to check if the property is in what condition, but try not to frustrate the deal by complaining about all there is to do. Sometimes the best deals require some work, but it’s worth the effort.


Negotiating the price and terms of a property purchase, including information on the role of legal representation, understanding the local market, and how to handle counter-offers. Is a whole subject for a column of itself. Having different types of approaches will help you and the seller come to an agreement which will work for the both of you.

Whether you're a first-time buyer or an experienced investor, having the right local experience provides valuable information that will help you make the best decisions and secure the property of your dreams.

Navigating the Complexities of Closing, Taxation, and Ownership Regulations in Bali

As a foreign buyer, it is essential to have a clear understanding of the legal and financial aspects of purchasing property in Bali.

Closing process

The closing process, including information on the required documentation, the role of legal representation, and the deadlines and timelines involved. Tips on how to handle any unexpected complications and how to ensure a smooth and efficient closing process you may always feel free to contact us. We’re more than happy to help.

Taxation and ownership regulations

The local laws and regulations regarding property ownership, including information on taxes, fees, and other financial obligations change over time. So make sure to check it with your lawyer. Local taxes may differ from regions, even within Bali. Local tax for hotels and villas are 10%. Restaurants and supermarkets around 11%. Indonesian government tax is 10% over the annual profit.

Property management and rental options

Property management and rental options for foreign buyers and the potential returns on investment on different types of rental options. Renting monthly will generate a stable income and will get your costs down. Doing daily renting doesn’t give a stable income, however will give more revenue if the demand is high. But will require more staff and monthly costs will go up. How to find reliable tenants and staff requires some experience. Flexible contracts will help you be more flexible if a partnership or agreement is not going as planned.

Key Takeaways/Conclusion

Buying real estate in Bali as a foreign investor can be a rewarding experience, but it is important to have a clear understanding of the laws and regulations that govern foreign ownership. By utilizing the resources provided on the website, foreign buyers can navigate the property purchase process with confidence.

Some key takeaways to remember when buying real estate in Bali as a foreign investor are:

  • Familiarize yourself with the foreign ownership regulations and how they apply to the type of property and location you are interested in.
  • Utilize the step-by-step guide for the property purchase process, including finding the right property, negotiating the purchase price, and completing the transaction.
  • Engage the services of a qualified and trustworthy lawyer to assist with legal representation during the process.
  • Conduct thorough due diligence on the property, including title research and inspections to ensure the property is free of any encumbrances.

In conclusion, buying real estate in Bali as a foreign investor can be a complex process, but with the right knowledge and resources, it can be a successful and rewarding experience. We encourage you to visit our website to learn more and sign up as a Investing in Bali member to access exclusive content and resources.