10 mistakes foreign buyers make in Bali (2026)

The 10 mistakes at a glance

1. Comparing leaseholds on price, not price per year left

A leasehold price buys the years left, nothing more. Two villas at the same price with 20 and 30 years left are very different deals. The cheaper listings also tend to have shorter leases:

Every leasehold listing on Ask Dalam that states its term shows the price per year of lease, so you can compare like with like. Prices by area and bedrooms are in how much does a villa cost in Bali.

2. Buying "freehold" through a nominee

Only Indonesian citizens can hold Hak Milik, Indonesia's freehold (UUPA Art. 21). Putting it in an Indonesian friend's name for you doesn't change that. A transfer to a foreigner, direct or indirect, is void and the land falls to the State (UUPA Art. 26(2)), and nominee share arrangements in a company are void too (UU 25/2007 Art. 33). Since February 2026, Bali's Perda 4/2026 also lets the province impose administrative sanctions, from warnings and permit cancellation to demolition, on anyone who brokers or facilitates a nominee deal (Art. 14, 20).

The lawful routes are a lease, a Hak Pakai home (at least IDR 5 billion for a house in Bali), or HGB held by a PT PMA. In the 11 areas we track, 80% of villas for sale that state a tenure are leasehold.

3. Counting on a lease extension

A Bali lease is a private contract, not a land title (UUPA Art. 44 to 45; KUHPerdata Art. 1548 ff.). There's no right to renew. An extension option written into the notarial deed, with the years and a price or formula, signed by the certificate holder and every co-owner or heir, binds the owner as a contract (KUHPerdata Art. 1338). Even then, if the owner refuses, the remedy is a court claim, not an automatic renewal. "We can discuss an extension later" protects you very little.

4. Not checking whose name is on the certificate

The lease or sale is only as good as the owner's title. Before any sale or mortgage deed, the PPAT has to check the original certificate at the land office and refuse to draw the deed if it doesn't match (PP 24/1997 on land registration). For a lease, ask your notary to do the same and to get every co-owner, spouse and heir to sign.

5. Signing with a notary you haven't checked, in a language you can't read

Notaries must by law act independently and impartially (UU 2/2014 Art. 16(1)(a)), and you can choose your own. Check a notary on AHU Online (ahu.go.id) and a PPAT on the ATR/BPN list for the regency; only a PPAT can make a sale deed for registered land. Agreements with an Indonesian party must be in Indonesian, with English alongside when a foreigner is involved, so sign a bilingual text that says which language prevails.

6. Trusting the zone colour

On official maps tourism zones are usually pink and housing yellow, but the colour isn't the legal test (Permen ATR/BPN 14/2021). What counts is the zone code in the regency plan and a KKPR confirmation in OSS for your exact plot (PP 28/2025). The province also caps buildings in tourism areas at 50% plot coverage and 15 m height (Perda Bali 2/2023 Art. 95).

7. Paying for an off-plan villa before the permits exist

Since 2021 a building needs a PBG before construction and an SLF before use (PP 16/2021). With an off-plan villa, the paperwork is all there is to inspect. 839 villas for sale on Ask Dalam are listed as off-plan, and none gives a completion date we can track. The off-plan guide lists what to have before each payment.

8. Buying to rent nightly without a licence route

Short-stay rental needs an OSS business licence (an NIB with the villa business code). That licence is reserved for Indonesian co-ops and small businesses (Perpres 10/2021 jo. 49/2021), and since May 2026 Bali's OSS has been closed to new foreign-owned applications for small hotels and other accommodation (Bali Provincial Government, 22 Jul 2026). A foreigner's Hak Pakai home is granted for use as a residence (PP 18/2021 Art. 72). The Tourism Ministry has said about 1,600 unlicensed properties across Indonesia could be removed from booking platforms from 1 August 2026 (Kemenpar, 26 May 2026). Our holiday rental licence page and the rental yield calculator help with the numbers that follow.

9. Budgeting for the price only

On a transfer of title the buyer pays BPHTB, 5% in Bali's regencies, and the seller pays a final 2.5% (UU 1/2022 Art. 46 to 47; PP 34/2016). A lease has no BPHTB; it carries a final 10% income tax on the lease price, owed by the landowner and withheld by the tenant if the tenant is a company (PP 34/2017). A developer sale adds about 11% VAT (UU 7/2021; PMK 131/2024). On top: a PPAT fee of at most 1% of the deed price, and the yearly PBB land tax. The taxes and fees guide works it through.

10. Planning on a Bali mortgage for a leasehold

A lease isn't a registered land right, so it can't carry a Hak Tanggungan (UU 4/1996 Art. 4(2)). A registered Hak Pakai can, but only a few banks lend to foreigners, mostly on apartments or ready units. Most foreign buyers pay cash or use developer instalments. See can foreigners get a mortgage.

What the numbers don't tell you

• Asking prices, not agreed prices. The lease and price figures come from live listings, not completed sales.
• A stated lease term is the seller's claim. Only the notarial lease deed counts.
• "Off-plan" is the listing's own word. A villa whose listing doesn't use it isn't in the off-plan count.

FAQ