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How to Successfully Buy Real Estate in Bali as a Foreigner

Dreaming of owning a piece of paradise in Bali? As a foreign buyer, the process of purchasing property in Bali may seem overwh...

Jorben Saaltink
22 Jan 2023 - 4 min read

How to Successfully Buy Real Estate in Bali as a Foreigner

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

Navigating Foreign Property Rules, Property Purchase Process, Legal Representation, and Due Diligence for Properties in Bali

Buying property in Bali as a foreigner can seem overwhelming. Indonesia has different rules, both at the national and local levels. Knowing the differences and what to look out for is key. Property rules, the property purchase process, legal representation, and due diligence.

Foreign Property Rules

The Indonesian government has strict rules regarding foreign ownership of properties. These rules vary depending on the type of property and its location. In Indonesia, you have different property titles such as "Freehold," "Leasehold," and "Right to build." Each property title requires a different legal structure to allow foreigners to have the property in their name.

Property Purchase Process

The real estate purchase process in Bali can be complex and time-consuming. It requires knowledge of Indonesian laws and regional regulations, including information on how to find the right property, negotiate the purchase price, and complete the transaction using a notary and your lawyer.

Legal Representation

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

Due Diligence

Due diligence is a crucial step in the real estate purchase process, and it is essential for foreign buyers to thoroughly examine a property before making a purchase. Types of due diligence to be conducted include researching property rights, land zoning, inspections, and access to necessary resources.

Navigating the Real Estate Market: A Guide to Financing, Realtors, Inspections, and Negotiations

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

Financing Options

The different financing options available to foreign buyers, including traditional bank loans (private banks starting from 2 million euros), mortgage loans (provided you have collateral in Indonesia), and financing by developers. Having the required credit score or collateral may be necessary, as well as evidence that you have the skills to run it if the property is intended for hotel or villa operation.


Having a serious and professional realtor in Bali is important. Dealing with a realtor who is in direct contact with multiple agents to find the best deals. They must have expertise in their field, previous projects, and customer reviews. If you have these serious realtors nearby, it's nice to have a good relationship between the agency and the buyer. It is advisable to contact multiple realtors. From Western agencies to local freelancers.

Property Inspection

What to look for during a property inspection and how to ensure the property is in good condition before making a purchase. It is important to check the condition of the property, but try not to frustrate the deal by complaining about everything that needs to be done. Sometimes the best deals require some work, but it's worth it.


Negotiating the price and terms of real estate purchase, including information on the role of legal representation, understanding the local market, and how to deal with counteroffers. It's a whole topic for a column in itself. Having different approaches will help you and the seller reach an agreement that works for both parties.

Whether you're a beginner or an experienced investor, with the right local experience, you'll gain valuable information to help you make the best decisions and secure the property of your dreams safely.

Navigating the Complexity of Closing, Tax, and Property Regulations in Bali

As a foreign buyer, it is essential to have a good understanding of the legal and financial aspects of buying real estate in Bali.

Closing Moment

The closing moment, including information on the required documentation, the role of legal representation, and the involved deadlines and timelines. Tips on how to deal with unexpected complications and how to ensure a smooth and efficient closing process, you can always contact us. We are happy to assist you, with the right people.

Tax and Ownership Rules

Local laws and regulations regarding ownership of real estate, including information on taxes, fees, and other financial obligations, change over time. So be sure to check with your lawyer. Local taxes can vary by region, even within Bali. Local tax for hotels, villas, and restaurants is 10%. Supermarkets 11%. Indonesian government tax is 10% on annual profits. For the first 3 years, you can enjoy a stimulus scheme, then you only pay 0.5% on turnover. Instead of the profit tax.

Property Management and Rental Options

Property management and rental options for foreign buyers and the potential return on investment on different types of rental options. Monthly renting provides a stable income and lower costs. Daily renting does not provide a stable income but will generate more revenue. Especially if the demand is high. Daily rentals require more staff and the monthly expenses will be higher. Finding reliable tenants and staff requires some experience. Flexible contracts help you to be more flexible if a collaboration or agreement does not go as planned.


Buying real estate in Bali as a foreign investor can be a rewarding experience, but it is important to have a good understanding of the laws and regulations applicable to foreign ownership. By utilizing the resources offered on the website, foreign buyers can confidently navigate through the real estate purchase process.

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

  • Get familiar with the rules for foreign ownership and how they apply to the type of real estate and location you are interested in.
  • Use the step-by-step guide for the real estate purchase process, including finding the right property, negotiating the purchase price, and completing the transaction.
  • Seek the assistance of a qualified and reliable lawyer to help with legal representation during the process.
  • Conduct thorough due diligence on the real estate, including property research (very important) 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 much of that complexity comes from the unknown. With the right knowledge and resources, it can be a successful and rewarding experience. We recommend visiting our website for more information and signing up as a member of Investing in Bali to access exclusive content and resources.