Owning property in Bali as a foreigner: what you can hold and what it costs

This is not legal or tax advice. Land and tax rules in Indonesia change, and regional tax regulations are amended from time to time, as Badung's was in 2025. Confirm every point with a licensed notary, land deed official (PPAT) or lawyer, and the official text, before you move money.

Key figures

• Rp5 billion is the minimum price of a landed house a foreigner may own in Bali, set by a ministerial decision of September 2022, as reported by Hukumonline in February 2023.
• One plot of up to 2,000 m2 per person or family is the limit for a foreigner's landed house under Permen ATR/BPN 18 of 2021, enacted on 29 April 2021.
• 30 years, plus 20, plus 30 is the longest term for Hak Pakai or HGB on state land under Government Regulation 18 of 2021, enacted on 2 February 2021.
• 5% is Badung's BPHTB duty on the buyer, charged on the price after a Rp80,000,000 deduction on a first acquisition in Badung, under Perda 7 of 2023 and unchanged from 1 January 2026.
• 2.5% of the gross value is the seller's final income tax on a transfer of land and buildings under Government Regulation 34 of 2016.
• 0.25% of the price is the cap on the land deed official's (PPAT) fee for a transaction above Rp2.5 billion, under Permen ATR/BPN 33 of 2021, enacted on 6 October 2021.
• More than Rp10 billion of investment per business activity and location, and at least Rp2.5 billion of paid-up capital, are required of a PT PMA under BKPM Regulation 5 of 2025, in force from 2 October 2025.
• IDR 23,000,000 to IDR 28,000,000, or USD 2,000, is what three firms publish for a PT PMA incorporation package, as read on their websites on 10 November 2026.

Can a foreigner own property in Bali?

Yes, but not as freehold. Freehold title in Indonesia (Hak Milik) is for Indonesian citizens, and for the legal entities the Government designates, under the Basic Agrarian Law of 1960. A foreigner has three routes the law provides to a villa or land in Bali:

1. Lease (hak sewa). You pay the owner rent to use their land for building. Foreigners living in Indonesia may hold this right.
2. Hak Pakai in your own name. A right of use registered to you personally, for one home. In Bali the house must cost at least Rp5 billion, according to Hukumonline's February 2023 summary of the ministerial decision.
3. HGB through a PT PMA. A foreign-owned Indonesian company holds a right to build (Hak Guna Bangunan). This is a business route with its own investment and capital rules.

The Basic Agrarian Law makes void any act meant to pass freehold to a foreigner directly or indirectly. See "Why do nominee arrangements fail?" below.

Lease, Hak Pakai or PT PMA: how do they compare?

The three routes differ in who holds the right, for how long and with what limits. Hak Pakai and HGB on state land run for up to 30 years, plus 20, plus 30, under Government Regulation 18 of 2021, while the lease articles of the 1960 Agrarian Law state no term.

Hak Pakai: the details

Government Regulation 18 of 2021 (2 February 2021) lets a foreigner with immigration documents own a landed house on Hak Pakai land, or on Hak Pakai granted over someone's Hak Milik by a PPAT deed. Its explanatory notes define immigration documents as a visa, passport or stay permit. Stay permits of five years and more are covered in our guide to long-stay visas. The home can be inherited. A foreign heir also needs immigration documents.

The Ministry's implementing rule, Permen ATR/BPN 18 of 2021 (enacted 29 April 2021), adds the limits: a luxury house, one plot per person or family, and no more than 2,000 m2. The Minister can allow more where there is a positive economic and social impact. If the house you buy sits on Hak Milik or HGB, the title is changed to Hak Pakai.

The minimum price is set by Ministerial Decision 1241/SK-HK.02/IX/2022 of September 2022. We could not load the decision's official text. Hukumonline, in an article dated 8 February 2023, reports the Bali minimum for a landed house as Rp5 billion. AKSET Law, writing on Legal 500 on 17 November 2022, reports that the home can be used as security for a loan and transferred to others.

One rule matters to people whose stay may end: under Article 50 of PP 18/2021, a holder who no longer qualifies must sell or transfer the Hak Pakai within one year, or the right lapses.

HGB through a PT PMA

HGB is given to Indonesian citizens and to legal entities set up under Indonesian law and based in Indonesia. The Investment Law requires foreign investment to take the form of a limited company under Indonesian law, based in Indonesia: a PT PMA.

The investment rules are in BKPM Regulation 5 of 2025, enacted on 1 October 2025 and in force from 2 October 2025:

• Investment value. More than Rp10 billion per business activity (5-digit KBLI code) per project location, excluding land and buildings. For property businesses (development, sale or rental) and accommodation, land and buildings count towards it, with further conditions for property.
• Paid-up capital. At least Rp2.5 billion per company.
• Lock-in. The paid-up capital must stay in the company's account for at least 12 months, except to buy assets, construct buildings or run the business.

Ask an adviser whether a company holding a villa fits your plans before you set one up. If the company will rent the villa out, the licences and the tax on stays are in our guide to villa management.

Why do nominee arrangements fail?

Two laws close this door. One makes void any act meant to pass freehold to a foreigner, and the other makes void any agreement that company shares are held for someone else.

• Law 5 of 1960 (the Basic Agrarian Law), Article 26(2). Any sale, gift or other act meant to pass Hak Milik directly or indirectly to a foreigner is void by law. The land falls to the State, and money already paid cannot be reclaimed.
• Law 25 of 2007 on Investment, Article 33. Shareholders in a company may not agree that shares are held for someone else. Any such agreement or statement is void by law.

Article 26(2) covers acts meant to pass freehold to a foreigner "directly or indirectly", not only a sale in the foreigner's own name.

What taxes and fees do you pay when you buy property in Bali?

In Badung, the buyer pays BPHTB duty of 5% of the price after a Rp80,000,000 deduction on a first acquisition, under Perda 7 of 2023 with rates unchanged from 1 January 2026, and a land deed official's fee capped at between 0.25% and 1% of the price. The seller pays 2.5% final income tax.

The BPHTB and land tax rates below are Badung regency's. Check the regulation of the regency where your land sits.

• BPHTB, paid by the buyer. 5% of the price after deducting Rp80,000,000, under Badung Perda 7 of 2023 (28 December 2023). The deduction applies to your first acquisition in Badung. If the price in the deed is lower than the tax value (NJOP), BPHTB is charged on the NJOP. BPHTB falls due when a binding sale agreement (PPJB) is signed, or at the deed if there is none, and the PPAT may not sign the deed until you show it has been paid. Perda 8 of 2025, in force from 1 January 2026, did not change these rates.
• Seller's income tax. 2.5% of the gross value, final, under Government Regulation 34 of 2016. It is a tax on the seller's income from the transfer. Ask to see proof it has been paid.
• PPAT fee. Capped by Permen ATR/BPN 33 of 2021: 1% up to Rp500 million, 0.75% up to Rp1 billion, 0.5% up to Rp2.5 billion and 0.25% above Rp2.5 billion. These are ceilings, not fixed fees.
• VAT, when the seller is a VAT-registered business that issues a tax invoice, such as a developer selling a new home. Under PMK 131 of 2024, in force from 1 January 2025, the effective rate is 11% for goods not classed as luxury, and the full 12% for luxury housing. For homes handed over in 2026, PMK 90 of 2025 has the government bear the VAT on qualifying homes: for a landed house, on the part of the price up to Rp2 billion, within a sale-price limit and with conditions such as one unit per person and no resale within a year. Ask the developer in writing whether your unit qualifies.
• Annual land and building tax (PBB-P2), Badung. 0.1% a year where the NJOP is up to Rp1 billion, 0.2% above that, under Perda 7 of 2023. Rp26,000,000 of NJOP is exempt per taxpayer, and a set share of between 20% and 100% of the remaining NJOP is taxed. Ask the seller for the latest yearly tax notice (SPPT).
• On a lease, a final 10% income tax is charged on the gross rent under Government Regulation 34 of 2017. It is a tax on the landlord's income, and a tenant appointed as a withholding agent deducts it. Agree in the contract who bears it.

Worked example (our arithmetic)

A foreigner buys an existing villa in Badung from a private seller for Rp10,000,000,000, as Hak Pakai, as their first acquisition in Badung, and the NJOP is not higher than the price. These figures are our own sums from the rates above, not a quote.

BPHTB and the maximum PPAT fee together come to Rp521,000,000, about 5.2% of the price, before legal review and land office charges. If the same villa were bought new from a VAT-registered developer and not classed as luxury, VAT at an effective 11% would be Rp1,100,000,000.

What should you check before you sign?

Check seven things: the title, the right type and its term, the zoning, the building approvals, the tax position, your own eligibility and the deed.

1. Title. Get a copy of the land certificate and ask for a certificate check at the land office, to confirm it is in the seller's name and free of mortgages, blocks or disputes.
2. Right type and term. Hak Milik, HGB or Hak Pakai, and the expiry date. For a lease, the remaining term and any written extension option.
3. Zoning. Check the plot's permitted use allows a home, or a rental villa if you plan to let it.
4. Building approval. The building approval (PBG) and certificate of fitness for use (SLF) should match what is built. Both are explained in our guide to building a villa.
5. Tax position. Recent PBB-P2 tax paid, and the NJOP, since it sets the BPHTB base when it is higher than the price.
6. Your eligibility. For Hak Pakai: the price meets the Rp5 billion minimum, it is your only plot, and the land is 2,000 m2 or less.
7. The deed. A sale is signed before a PPAT. Ask for the draft in Indonesian and in a language you read, and check the price in the deed is the price you pay.

Firm prices in the table above are what each firm publishes on its own website, read on 10 November 2026. None of these firms has been asked for a quote, none has paid to appear, and the list is in alphabetical order. The same published prices sit in the Bali Price Index.

Common questions

Can foreigners buy property in Bali?

Yes, but not as freehold. Indonesian law gives a foreigner three routes: a lease (hak sewa), one landed house in your own name on Hak Pakai, or a right to build (HGB) held by a foreign-owned company, a PT PMA. Freehold (Hak Milik) is for Indonesian citizens under the Basic Agrarian Law of 1960. This is a summary as of November 2026, not legal advice.

What is the minimum price for a foreigner to buy a house in Bali?

Rp5 billion for a landed house in Bali, according to Hukumonline's February 2023 report of Ministerial Decision 1241/SK-HK.02/IX/2022, issued in September 2022. We could not load the decision's official text. The house must also be in the luxury category, on one plot per person or family, with no more than 2,000 m2 of land, under Permen ATR/BPN 18 of 2021.

How long do Hak Pakai and HGB titles last?

On state land, both run for up to 30 years, can be extended for up to 20 years and renewed for up to 30 years, under Government Regulation 18 of 2021, enacted on 2 February 2021. Over someone's freehold land, both run for up to 30 years and can be renewed by deed. A Hak Pakai holder who no longer qualifies must sell or transfer it within one year.

How long can a foreigner lease land in Bali?

Articles 44 and 45 of the Basic Agrarian Law of 1960, which let foreigners living in Indonesia lease land for building, state no maximum term. Rent may be paid once or periodically, and the lease may not contain exploitative conditions. Before you sign, check the remaining term and whether any extension option is in writing.

Is a nominee arrangement legal in Bali?

Two laws stand against it. Article 26(2) of the Basic Agrarian Law of 1960 makes void any act meant to pass freehold to a foreigner directly or indirectly, and the land falls to the State. Article 33 of the Investment Law of 2007 makes void any agreement that shares in a company are held for someone else. Take advice from a licensed lawyer.

What taxes do you pay when you buy a villa in Bali?

In Badung, the buyer pays BPHTB duty of 5% of the price after a Rp80,000,000 deduction on a first acquisition, under Perda 7 of 2023, with rates unchanged from 1 January 2026. The seller pays 2.5% final income tax. The land deed official's fee is capped at 0.25% for a price above Rp2.5 billion. A new home from a VAT-registered developer also carries VAT at an effective 11%, or 12% for luxury housing.

Do you need a visa or KITAS to own a house on Hak Pakai?

You need immigration documents. Government Regulation 18 of 2021, enacted on 2 February 2021, lets a foreigner who holds them own a landed house on Hak Pakai, and its explanatory notes define them as a visa, passport or stay permit. A holder who no longer qualifies must sell or transfer the right within one year, or it lapses.

How much does it cost to set up a PT PMA in Bali?

Firms publish PT PMA incorporation packages at IDR 23,000,000 (IZIN.co.id), IDR 28,000,000 (InvestinAsia) and USD 2,000 (Emerhub), as read on their websites on 10 November 2026. That is the set-up fee only. BKPM Regulation 5 of 2025, in force from 2 October 2025, also requires investment of more than Rp10 billion per business activity and location, and paid-up capital of at least Rp2.5 billion.

Questions to ask before you pay

• Is the title Hak Milik, HGB or Hak Pakai, and when does it expire? Can I see the land office check?
• If I buy as Hak Pakai, who handles the change of title, and what does the land office charge for it?
• Does this house meet the Rp5 billion minimum and the luxury house category? Is the land 2,000 m2 or less?
• What NJOP is on the latest SPPT, and is it higher than the price in the deed?
• Is this my first acquisition in Badung, so the Rp80,000,000 deduction applies?
• What is the PPAT's fee in writing, and is it within the cap for this price?
• Is the seller VAT-registered? If so, does the unit qualify for the 2026 VAT incentive?
• For a lease: how many years are left, is the extension option in writing with a price, and who pays the 10% tax on the rent?
• For a PT PMA: what will the company's real business be, and who will file its reports?
• Is any part of this deal held in someone else's name? If yes, stop and take advice from a licensed lawyer.

Sources

1. Government Regulation 18 of 2021 on management rights, land rights, strata units and land registration, JDIH Kemenko Infrastruktur, as stated in February 2021. Accessed 2026-11-10.
2. Permen ATR/BPN 18 of 2021 on procedures for management rights and land rights, JDIH Kemenko Infrastruktur, as stated in April 2021. Accessed 2026-11-10.
3. Minimum prices for homes foreigners may buy, Kepmen ATR/BPN 1241/2022, Hukumonline, as stated in February 2023. Accessed 2026-11-10.
4. Kepmen ATR/BPN 1241/SK-HK.02/IX/2022 record, Hukumonline, as stated in September 2022. Accessed 2026-11-10.
5. Facilitation for foreign nationals in acquiring property, AKSET Law via Legal 500, as stated in November 2022. Accessed 2026-11-10.
6. Law 5 of 1960, Basic Agrarian Law, JDIH Kemenkeu, as stated in September 1960. Accessed 2026-11-10.
7. Law 25 of 2007 on Investment, JDIH Kemenkeu, as stated in April 2007. Accessed 2026-11-10.
8. Regulation of the Minister of Investment and Downstreaming/Head of BKPM 5 of 2025, JDIH BKPM, as stated in October 2025. Accessed 2026-11-10.
9. Badung Perda 7 of 2023 on regional taxes and levies, JDIH Badung, as stated in December 2023. Accessed 2026-11-10.
10. Badung Perda 8 of 2025 amending Perda 7 of 2023, as stated in December 2025. Accessed 2026-11-10.
11. Government Regulation 34 of 2016 on income tax from transfers of land and buildings, Directorate General of Taxes, as stated in August 2016. Accessed 2026-11-10.
12. Permen ATR/BPN 33 of 2021 on PPAT fees, as stated in October 2021. Accessed 2026-11-10.
13. PMK 131/2024 on VAT rates, Directorate General of Taxes, as stated in January 2025. Accessed 2026-11-10.
14. Conditions of the 2026 VAT incentive for homes, PMK 90/2025, DDTCNews, as stated in January 2026. Accessed 2026-11-10.
15. Government Regulation 34 of 2017 on income tax from renting land and buildings, Directorate General of Taxes, as stated in September 2017. Accessed 2026-11-10.
16. Firm price pages: Bali Business Consulting, due diligence, Bali Business Consulting, transaction support, Emerhub, InvestinAsia, IZIN.co.id. Accessed 2026-11-10.