Ownership · Indonesian law · October 2026
Can a foreigner own property in Bali?
Foreigners can't own freehold (SHM) land in Bali. They can lease (Hak Sewa, a private contract), hold Hak Pakai on a house (30+20+30 years, minimum IDR 5B in Bali) or own through a PT PMA. Nominee deals carry administrative sanctions under Perda Bali 4/2026.
Rules checked 30 Sep 2026 · 5,919 homes for sale · 4 October 2026
General information, not legal or tax advice. Confirm the title, the lease and the permits for a specific property with a licensed notary (PPAT).
Who can hold what: two taps to your title
Are you an Indonesian citizen?
What do you want to do?
Your title
Hak Sewa, leasehold
- Who
- Anyone who signs, foreigners included.
- Term
- Whatever the contract says. The median listing has 25 years left.
- Record
- A notarial deed. Not a land title.
- Catch
- The extension is a contract right, never automatic. Only as secure as the landlord's certificate.
Next: ask a notary (PPAT) to check it for your property.
Five ways property is held in Bali
Only the first four are titles. The fifth is what the law now sanctions.
| Title | Who can hold it | Term | How it's recorded | The catch |
|---|---|---|---|---|
| Hak Milikfreehold · SHM | Indonesian citizens only. | No end date. Passes to heirs. | Certificate (SHM) at the land office (BPN). | A foreigner can't take over an SHM as it stands. "Freehold" in a listing is the seller's word. |
| Hak Sewaleasehold | Anyone who signs: foreigners included. | Whatever the contract says. The law sets no maximum. | Notarial deed. Not a land title; no certificate. | The extension is a contract right, never automatic. Only as secure as the landlord's certificate. |
| Hak Pakairight of use | A foreigner with immigration documents, for a home to live in. Bali house minimum IDR 5B. | 30 + 20 + 30 years on state land. | Registered at the land office. | It is the only title banks finance for foreigners. Granted as a residence, not a rental licence. |
| HGB via PT PMAcompany title | A foreign-owned Indonesian company, for its registered business line. | 30 + 20 + 30 years on state land. | Registered in the company's name. | Since late May 2026 Bali OSS is closed to new PT PMA applications for 18 business codes, including small accommodation. Never a route to a rental licence. |
| Nomineenot a title | An Indonesian holds it on paper; the foreigner pays and controls. | – | No valid record of the buyer's right. | Banned by Perda Bali 4/2026 (enacted Feb 2026). Administrative sanctions only. |
Rules: UUPA 5/1960, PP 18/2021, Perda Bali 4/2026 · checked 30 Sep 2026
A lease is years left, not years signed
Most Bali villas for sale are leasehold, so this is the question that matters most. Drag to see the end year.
Median listing: 25 yrs left, middle half 23 to 28 · 4,657 leaseholds · 4 October 2026Outlined = middle half of listings
Extension signed
Only if the deed gives you an option or you agree a new one. It is a contract right: the terms (years, price, who pays) belong in the deed before you buy.
Run to the end
The right to use the land ends on the end date. Agree in the deed what happens to the building. Ask your notary, since a lease isn't a registered title.
Sell before the end
The next buyer gets fewer years. That is why every leasehold listing on Ask Dalam shows the price per year of lease left.
Tax on a lease: no BPHTB and no 2.5% PPh on the lease itself; only the 10% final tax on rent.
Four in five villas for sale are leasehold
80%leasehold
Of 5,824 villas and houses for sale that state a tenure: 4,688 leasehold, 1,136 freehold. Another 95 don't say.
Leasehold 4,688 Freehold 1,136
asking listings · duplicates removed · 4 October 202625years left, median
Middle half: 23 to 28 years. 13% have 20 or fewer left, 11% have more than 30.
Before you sign anything, use a notary (PPAT)
A lease is only as safe as the landlord's certificate. A PPAT checks the original certificate at the land office and draws the deed. You can choose your own rather than the seller's. What to check before you buy
The detail lives in the guides
This page answers the question. Each guide below owns one deeper question, so we don't repeat them here.
Quick answers
Can a foreigner buy freehold in Bali?
Not as Hak Milik (SHM), which is for Indonesian citizens only. A foreigner can lease, hold Hak Pakai on a house worth at least IDR 5B in Bali, or hold HGB through a PT PMA for its own business line.
Do I need a KITAS for Hak Pakai?
Not by the letter of the rule: a visa, passport or residence permit is accepted. A land office or notary may still ask for one, so check with yours early.
Is a nominee deal legal?
No. Perda Bali 4/2026 bans nominee arrangements, with administrative sanctions only. Nominee deals were already void under national law.
Can I rent out a villa I hold on Hak Pakai or through a PT PMA?
Don't assume so. Hak Pakai is granted as a residence, and a PT PMA is never a route to a villa rental licence. The Tourism Ministry said unlicensed accommodation can be removed from booking platforms from 1 Aug 2026. Enforcement is unconfirmed. Ask a notary before you buy.