Buy Bali Property is not as difficult as it seems – or Is it?

Buy Bali Property. Bali has been well-known since long time ago as one of the most beautiful places anywhere in the world. According to Travel&Leisure magazine, Bali is one of the best islands in the world (That’s right, in the world).

Talking about popularity, recently Bali has been crowned as THE most instagrammed island in the world (talking about big numbers there). If we are talking about places, Bali is the 8th most instagrammable place in the world after Sydney, Hongkong, Dubai, New York, Singapore, Tokyo, and Lisbon. The popularity of Bali among local tourists in Indonesia is obvious (by the way, in case you don’t know, Bali is in Indonesia). Bali occupies the top mind of Indonesians when it comes to local travel, far ahead of its competitors like Lombok island and Borobudur temple.

Why People Like to Travel to Bali?

Now the question is why people like to travel to Bali so much? Even Australians treat Bali as their backyard. In my opinion (and opinion of millions), Bali has all the characteristics to become the world’s premier travel destination.

First, it is the nature. Bali has everything, from sandy beach to gorgeous mountains, from breathtaking villas to amazing culture, from friendly locals to reasonable cost of living. What else will you ask for? Oh, not forgetting the best place to do diving in Bali is Menjangan island.

Talking about beach, Bali has Kuta beach, Sanur beach, Pandawa beach, Lovina beach, etc. Bali’s famous Mount Agung is so famous, many business people create yoga plaform just to face Mount Agung. WOW, that’s indeed yoga with a view. Villa in Bali is stunning (and affordable), youtube has thousands of its videos.

buy bali property
buy bali property

Indonesia is a Muslim-majority country, with over 87% is Muslim. However, Bali is predominantly Hindu. Therefore, it is rather special that Bali still holds its Hindu tradition even till this day. People practice religious practice almost everyday, even for the modern generation. When you come to Bali, you will be greeted by the biggest smile you will ever find anywhere in the world.

For you who are wondering if staying or travelling to Bali may cost you arms and legs, not to worry. Bali’s cost of living is relatively modest if you are willing to travel and live like locals. Of course, going to bar is not going to be extremely cheap, but it’s reasonable. Even if people charge you slightly higher than the locals (think of it like some tips because they need to understand your English or hire an extra english-speaking staff just for you), the charge is still very moderate compared to many other tourist places.

How to Buy Bali Property?

Now, the next question is how foreigners can buy Bali property, a piece in this heaven on earth. Many people from all around the world have “buy bali property” in their bucket list. Almost all Indonesians want to buy Bali property, at least a simple house in Bali (holiday villa) because according to Indonesians, Bali is like the ultimate retirement place.

But now let’s come to the hard truth. According to Indonesian real estate law, it is not legal for a foreigner to “own” a land in Indonesia and buy Bali property. If your definition of owning a property is legally owning it (have your name in the land certificate), yes it is not allowed.

BUT Don’t leave just yet. There are many ways around it. First, it is through a local friend (or spouse or business partner) you trust 100%. That person is usually referred as “Indonesian nominee”. Of course there are some risks involved because lawfully, that indonesian nominee is the legal owner of that piece of property. Despite the risks, 80% of foreigners who “own” property in Bali use this as a way to acquire a property. Some marry Indonesian spouse and put the property under the spouse’ name.

What is the Other Ways to Buy Bali Property?

The second option is by using the “right to use” or in Indonesian we wall it “Hak Pakai”. The way to do it is by using resident stay permit (retirement visa or KITAS in Indonesian). The good news is if you are over retirement age (55 years old), you can use retirement visa. Otherwise, a “sponsor” company is required. With the help of notary, you can have your name legally and the property can be transferred to your children or other heirs. However, there is a minimum price of property for this which is IDR 5 billion (USD 338,000) and you cannot buy a land(ha to be a land with house on it). The size of the land is also cannot be more than 2 hectares.

Now let’s discuss the length of the right to use. The length of the right to use 30 years + 20 years + 20 years. Meaning to say, initially the right to use is for 30 years, then extendable to 20 years additional time and finally 20 years (with some renewal tax, but very affordable). Now the question is what will happen after 80 years? Well, Indonesia has only got its independence in 1945 (so it’s only 75 years young). So there has not been any case of that 80 years. However, if your purpose of buy Bali property is to get capital gain and income from rent, of course you can always sell the property to other people before 80 years. It is treated the same way as other property. With capital appreciation of property in Bali historically is 15% to 25% per year, you can be enjoying HUGE potential in capital gain and capital appreciation. We are talking about doubling your money every 3 to 5 years here.

The third option which is the easiest way is by leasehold. You basically rent the land or the property for long term, maybe it is 25 years. After 25 years, the property ownership goes back to its initial owner. What you can do is just showing visa (can be tourist, business, permanent stay, social, etc) and pay. That’s it. There is no limitation of price (can be as low as USD 30,000 for 25 years leasehold, yes, you heard it right).  a valid passport with a valid visa for Indonesia. This can be any kind of visa, tourist, social, business, or permanent stay. And please note you have the right to own as many leasehold properties as your money can buy.

What if You Have a Business (Company) in Indonesia?

The last option is through a foreign investment company. If you have a company in Indonesia, you can buy the property under this company’s name. It is basically just normal buying process. However, if you have not owned a business in Indonesia, the process can be quite tedious. Contact our team and we can explain it to you. There are several very profitable businesses in Indonesia for example in tourism, education, manufacturing, and property business.

Two Revolutionary Ways to Invest in a Property in Bali Using as Little as $40,000

If you don’t have $338,000 to invest as stated previously, what should you do? Well, there are two ways to do it.

First, you can have a real estate purchase contract (purchase agreement). It is very safe because it is done with the help of public notary. If you in the future want to sell that property, you can simply use the contract as a proof of ownership of that property. Second way is by using what we call “investment partnership agreement”, which means you invest a certain amount of money in a property. It is not easy to explain here but trust me, it is 100% legally safe. Just give us an Email or phone call and we will explain it to you.


Bali is around 5800 km2 and with almost 4,5 million population. There are some areas that are considered pretty popular and some up and coming areas that are worth mentioning.

  1. Kuta. Kuta is the place where people think of when they go to Bali. It’s been famous for decades for a surf beach. However, in my opinion, because of its crowd and some irresponsible tourists, it is getting dirty. People also will sell you anything from drink to souvenir and massage. For investment, well, as it is already very touristic, the price is already sky high and we don’t expect the price to be getting much higher in the future. Expected Return = 10 – 15% / year
  2. Seminyak. Seminyak is well-known as the place to go for bars and youngsters. It has got some of the hippest cafe and clubs around, very popular among the younger tourists. Property investment in Seminyak is also already very high (even higher than Kuta) and in my opinion, very difficult to get the good return if you aim for rental income. Expected return = 10-20%/year
  3. Sanur. Sanur is similar to Kuta but more quiet and fewer tourists. It is pretty popular among chinese tourists. Expected return = 10-15%/year
  4. Ubud. Ubud is one of my favorites because it has got very nice village and some excellent restaurants. People usually go to Ubud for culture, like joining a yoga or meditation class and interacting with locals. For investment purporse, I would put Ubud as moderate. Price is not cheap (can be higher in the future for sure), but don’t expect to double your money in 5 years. Expected return = 10 to 20%/year
  5. Canggu. Canggu is the upcoming investment destinations in Bali. Despite fewer tourists, it is going to be catching up with Kuta in the fewer. If you ask me 3 or 4 years ago, I would recommend Canggu. But currently, the price of property in Canggu has started to skyrocket with more investors are buying its properties. I would still recommend if you have lots of money to invest. Expected return = 15 to 25%/year
  6. Lovina / Buleleng. Buleleng in north of Bali is THE best choice for investing right now. Despite a bit far from the other tourist destination, it is definitely catching up. Government of Bali has initiated several infrastructures to make Lovina and other Buleleng areas more equal to other Bali. Those initiatives include South-North Bali shortcut and toll road, New Bali international Airport, Train railway, etc. Currently, the price of similar property in Buleleng is just one-fifth to one-fourth of the South meaning to say, for similar villa if you need to spend $500,000 in the south, you can just spend $100,000 to $150,000 in Buleleng. We expect a return of 20 to 35% / year here. Which translates to doubling your money EVERY 3 to 5 years. This is truly an investment darling.

If you have any question regarding Buy Bali Property guide, please feel free to contact me at +62813 15476062 (call/whatsapp) or my E-mail