Frequently Asked Questions
Investment in Bali
Bali, often referred to as the “Island of Gods,” offers a unique blend of captivating natural beauty, rich culture, and a steadily growing tourism industry. The consistent rise in tourists and expats yearning for a piece of paradise ensures that property and land values remain promising. Its diverse real estate offerings, from beachfront villas to hilltop retreats, cater to various investment appetites.
While foreigners cannot directly own freehold property (Hak Milik) in Bali, they can obtain property through other legal avenues such as leasehold agreements, and the Hak Pakai (Right to Use) structure. It’s essential to consult with legal experts when considering investments in Bali to ensure compliance with Indonesian regulations.
Different Visas to Invest
The main visas suitable for investors include the Business Visa, which allows for business meetings and conferences but not employment, and the Investor KITAS, a stay permit given to foreign nationals in relation to their investment in Indonesia.
No, a tourist visa strictly prohibits any form of employment or business activity. To work or conduct business, you would need to secure the appropriate visa, such as a Business Visa or an Investor KITAS.
About Buying in Freehold
Freehold, known locally as “Hak Milik,” is the highest form of land ownership in Indonesia. It grants the holder almost unlimited rights over the property. However, direct freehold ownership is only available to Indonesian citizens.
While foreigners cannot directly own Freehold properties, they often use a legal agreement with an Indonesian nominee. This arrangement involves the nominee buying the property on their behalf and then signing an agreement that grants the foreigner full rights to the property. It’s crucial to seek legal counsel to ensure such agreements are secure.
About Buying in Leasehold
Leasehold, or “Hak Sewa,” allows an individual to lease or rent a piece of land or property for an extended period, typically ranging from 25 to 30 years. This can often be extended for up to 60 years or more.
Yes, foreigners can legally acquire Leasehold properties in Bali. It’s one of the most common ways for foreigners to invest in real estate in Bali, given its clarity and the absence of a need for a local nominee.
About Renting
Yes, many investors and property owners rent out their villas or properties, especially in tourist-heavy areas. However, you must ensure you have the appropriate licenses and permissions to operate legally.
Rental agreements can vary, but common structures include monthly rentals, yearly rentals, and long-term lease agreements. Always ensure that the agreement is detailed, clear, and legally binding to both parties.
