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6 Essential Steps Overseas Buyers Must Take Before Purchasing Property in Bali

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Bali’s tropical lifestyle, thriving tourism, and growing real estate market make it one of the most attractive destinations for property investment in Asia. But for overseas buyers, purchasing property in Bali is not as straightforward as in their home country. Indonesian laws on land ownership, visa requirements, and due diligence processes can be tricky to navigate without the right guidance.






To help you avoid costly mistakes and make informed decisions, here are the six essential steps every foreign buyer should take before buying property in Bali.


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1. Define Your Purpose for Buying

Before looking at villas or land plots, clearly define why you are buying in Bali.

  • Personal Residence: For retirement or part-time living.

  • Holiday Home: A private retreat for family and friends.

  • Investment Property: Villas or apartments rented out for short-term stays (Airbnb, Booking.com) or long-term tenants.

  • Business Use: Developing multiple villas, hotels, or co-living spaces.

👉 Your purpose determines the best ownership structure, location, and budget. For example, an investment property near Canggu or Uluwatu will have stronger rental demand compared to a personal residence in quieter Ubud.


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Work Only With Verified Sources

Property scams do exist in Bali. To protect yourself:

  • Use Tetamo or other trusted platforms to check verified property owners and licensed agents.

  • Ask for land certificates (SHM for Freehold, HGB, or Lease Agreement).

  • Verify zoning: make sure the land is classified for residential or commercial use (not “green belt” or protected land).

  • Confirm permits such as IMB (building permit) or SLF (function worthiness certificate) for villas.

👉 A legitimate property deal in Bali will always have transparent documents. If something feels rushed or unclear, walk away.



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Understand Ownership Options for Foreigners

Foreigners cannot own freehold land in Indonesia under their personal name. Instead, there are legal alternatives:

  • Leasehold Agreement: You lease the property (commonly 25–30 years) with the option to extend. Safe, simple, and widely used.

  • HGB (Right to Build) via PT PMA: Setting up a foreign-owned company (PT PMA) allows you to hold “Right to Build” on land. Suitable for those running rental or hospitality businesses.

  • Nominee Structure: An Indonesian holds the title in their name but signs agreements to “lend” ownership. ⚠️ Risky and not recommended, as it’s legally unstable.

👉 Choose the structure that matches your purpose. For most overseas buyers, leasehold or PT PMA are the safest routes.



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Build Your Professional Team

Buying in Bali requires local expertise. Assemble your trusted team:

  • Licensed Real Estate Agent: Provides access to verified listings, negotiates deals, and ensures fair pricing.

  • Notary / Legal Consultant: Handles title checks, drafts agreements, and registers your ownership or lease.

  • Financial Advisor or Banker: Advises on payment structure, taxes, and potential financing (local banks like Bank Permata or BCA offer some solutions).

👉 Never rely solely on verbal agreements. In Bali, all property transactions must be legalized through a notary.


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Prepare Your Budget and Do Full Due Diligence

Beyond the purchase price, budget for:

  • Taxes & Notary Fees: Usually 1–2% of the transaction value.

  • Permit Costs: IMB/SLF, zoning adjustments, if needed.

  • Furnishing & Renovation: Many properties are sold semi-furnished.

  • Property Management Fees: If you plan to rent it out.

Final due diligence steps:

  • Check utility connections (water, electricity, road access).

  • Confirm that the seller or developer has no debts tied to the land.

  • Ensure all payments go through a notary escrow account for security.

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Final Thoughts

Buying property in Bali can be a life-changing investment—whether for personal use, a holiday villa, or generating rental income. But without the right preparation, it’s easy to fall into traps that could cost you time, money, and peace of mind.

By following these five steps—defining your purpose, choosing the right ownership structure, working with verified sources, building a professional team, and completing full due diligence—you’ll be on the right path to a safe and successful purchase.

📲 If you’re considering buying property in Bali, start by consulting verified platforms like Tetamo and working with trusted professionals. The right guidance can turn your Bali dream into a secure investment.


Contact us for more information and further assistant http://wa.me/6282313556606

 
 
 

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