The Indonesian government has relaxed foreign ownership regulations and allows foreigners to buy property in Bali. However, there are some limits to this ownership. 

Is buying property in Bali a good investment?

The short answer is yes, buying property in Bali is a very good and long-term profitable investment. The island has beautiful beaches, a tropical climate, and an intriguing culture that attracts tourists from all over the world. Owning a piece of Bali real estate gives you the opportunity to generate rental income from vacationers who want to experience all that the island has to offer. 

On average 8-10% returns are guaranteed, and in some locations even up to 30%. The top locations to buy property in Bali are Canggu, Seminyak, Ubud, Uluwatu and Jimbaran especially beachfront land plots and villas. 

Additionally, the investment and business climate in Indonesia, in general, is very stable and fast-growing due to the strong domestic market, massive foreign investments, abundant natural resources, and ease of doing business here. The government has supported and facilitated the process of buying properties in Bali a lot over the past years and is focused on gaining even more trust from foreign investors. 

Can foreigners buy property in Bali?

According to Indonesian law No. 5 from 1960, only an Indonesian citizen can buy property in Bali freehold and fully own it indefinitely. However, foreign investors are invited to lease property in Bali under a special ownership title for a few years or decades.

You can buy property even while abroad, you don’t have to live and work full-time in Indonesia to purchase rights to use the land or rent a villa.

To fully understand the legal aspect of buying a property in Bali, we need to guide you through property ownership titles, needed permits, and zoning limitations applicable to any property in Bali.

Buying a property in Bali be prepared for how they calculate prices: the land prices are listed per are (100 sq m) per year for leasehold. Some listings, especially villas and apartments, have a price for the whole period of the lease, ex USD 1 000 000 for owning a penthouse in the center of Canggu for 39 years. It normally happens when you’re buying a freehold property.