How Foreigners Can Buy a Villa in Bali: Step-by-Step Guide

Step 1: Understand the Rules for Foreigners

The first thing to know is this: Foreigners cannot own land in Indonesia under their personal name.

But don’t worry. There are legal ways to invest in a villa.

The most common options are:

• Leasehold (long-term rental)

• Using a company (PMA)

Step 2: Choose the Right Location

Location is very important.

Popular areas in Bali:

• Canggu

• Seminyak

• Ubud

• Uluwatu

• Berawa

• Pererenan

Choose a location based on your goal:

• For rental income → tourist areas

• For living → quieter areas

Step 3: Decide How You Will Own the Villa

Leasehold

• You rent the land or villa for a long time (20–30 years)

• You can extend the lease later

• This is the most common choice for foreigners

Using a PMA Company

• You create a foreign-owned company in Indonesia

• The company leases the land

• Suitable for business and rental use

Step 4: Set Your Budget

Your budget should include:

• Villa price or lease cost

• Legal fees

• Taxes

• Notary fees

• Renovation costs (if needed)

• Furniture and setup

Always keep extra money for unexpected costs.

Step 5: Check the Legal Documents

Before paying anything, check all documents carefully.

Important documents include:

• Land certificate

• Zoning (land use permission)

• Building permit (PBG)

• Safe building certificate (SLF)

• Lease agreement details

Always use a trusted notary and legal advisor.

Step 6: Sign the Agreement

Once everything is checked:

• Sign the lease or purchase agreement

• Make payments as stated in the contract

• Register the agreement with a notary

Never pay without a signed legal contract.

Step 7: Register Permits for Rental (If You Rent It Out)

If you plan to rent out the villa, you need:

• Business license (NIB)

• Tourism license

• Tax registration

These permits make your rental business legal.

Step 8: Furnish and Prepare the Villa

To attract guests or tenants:

• Furnish the villa well

• Add basic amenities

• Make sure everything works properly

A well-prepared villa earns more income.

Step 9: Choose How to Manage the Villa

You have two choices:

• Manage the villa yourself

• Hire a professional villa management company

Management companies handle:

• Guests

• Staff

• Maintenance

• Marketing

• Taxes and reports

This is very helpful if you live outside Bali.

Step 10: Start Earning Income

Once everything is ready:

• List the villa online

• Welcome guests or tenants

• Track income and expenses

With proper setup and management, your Bali villa can earn steady income.

If you’re a villa owner or investor looking for reliable management in Bali, get in touch with us today. Let’s grow your property together.