The process of acquiring or renting property in Bali for tourists is notably complex, yet recent clarifications from the Bali Regional Office of the Ministry of Law and Human Rights have shed light on the matter. Anggiat Napitupulu, the Head of the Bali Regional Office, informed reporters that foreigners holding any type of residence permit, including a Visa on Arrival, are eligible to purchase, lease, and own property across Indonesia. 

Napitupulu stated, “All types of residence permits are permitted. Including Visa on Arrival, yes.” He further clarified that the ability to own property does not depend on the type of residence permit one holds.

Despite this, there are considerable restrictions and challenges regarding the types and prices of properties that foreigners can invest in. Due to the stringent regulations on the type and cost of properties available, Napitupulu believes the facility to manage these transactions on a tourist visa on arrival is advantageous.

He said, “I think this is okay. Because the foreigner still has to have a residence permit (visa) when making a transaction. And ownership of the transaction will not determine the type of immigration residence permit.”

The decree from the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency sets the minimum price of housing accessible to foreigners, which varies by region. For instance, the minimum price for a ‘landed house’ in Bali is IDR 5 billion (USD 314,000), while in West Nusa Tenggara (including Lombok), it is IDR 3 billion (USD 188,000).

While it is technically possible for foreigners to buy property within these limits using a tourist visa on arrival, navigating the investment landscape within these parameters requires careful consideration and understanding of the legal processes involved. In Indonesia, property ownership for foreigners is typically linked with specific types of land titles, such as Hak Milik (Right to Own), Hak Pakai (Right to Use), and Hak Guna Bangunan (Right to Build), each accompanied by different legal frameworks.

Tips for buying a property in Bali

  • Research the Market Thoroughly: Before making any investment, familiarise yourself with the current real estate market in Bali. Consider trends, price ranges, and the most desirable locations. This knowledge will help you make an informed decision and spot good investment opportunities.

  • Understand the Legal Requirements: Bali has specific legal requirements for foreign property ownership. Engage with a reputable local lawyer who specializes in property law to navigate the complexities of Indonesian real estate regulations, ensuring all legal protocols are correctly followed. You can also work with us as we provide legal services.

  • Inspect the Property Personally: Always visit and inspect the property you intend to buy. Check its condition and assess any necessary repairs or renovations. This step is crucial to ensure the property meets your expectations and investment criteria.

  • Secure Financing: If you require financing to purchase property, check the options for foreigners. Some Indonesian banks offer mortgage options to non-residents, but the terms can vary significantly from those available to locals.

  • Negotiate Terms Effectively: When you find the right property, negotiate the terms of purchase or lease assertively. This includes the price, payment plans, and any legal stipulations that need to be included in the contract.

  • Plan for Additional Costs: Account for extra expenses such as taxes, notary fees, and legal costs. These can add up and significantly affect the total cost of your property investment in Bali.

By following these tips, you can confidently approach your property purchase and have a solid understanding of the Bali real estate landscape. 

See our listing of villas for sale across Bali.