Buyers Guide

You will see from our website we don’t have hundreds of properties listed. We don’t aim to have the biggest selection of properties in Bali but we are extremely confident that the properties we have are some of the best value for money. As per our mission statement and our policy we wish to be transparent in the information we provide, you will notice we don’t like to list properties if the access road is bad or the documentation is not clear or it is overpriced. It is extremely important for anybody buying a property in Bali to have all the information in their possession so they can make an educated decision as to which Balinese property to buy or rent. We also understand that our clients’ time in Bali is both valuable and limited and we don’t want to waste that time by showing properties that are not as described or not of interest.

Please note that the information here supplied is to be used as a guide only. For exact information please consult a lawyer or notary. We have very good relationships with selected notaries that can give clear and concise advice and also speak excellent English. We are happy to send you a list for you to contact them directly.

Bali Property Law

Under Indonesian Law Non Indonesians are not permitted to hold a freehold title in their name. It is however legal for Non Indonesians to acquire Bali property and enjoy full beneficial rights as a resident in Indonesia with the Hak Pakai as described below. Foreigners have been purchasing and selling property in Bali and other areas of Indonesia for many years now. We have provided a brief summary of some of the main options available. Although there is no regulation that contracts have to be in Indonesian language, it is recommended having contracts and agreements always drawn up and executed in Bahasa Indonesia (or two languages) to prevent later arguments that the local partner did not fully understand the content. It is better to get the translation done by a sworn translator, for around (US$100-300) depending on number of pages rather than by the notary office to guarantee a better accuracy.

Hak Milik (Freehold)

Hak Milik (Freehold) is a freehold title that can be only held by an Indonesian citizen. The most common purchase of Bali property in the past by foreigners has been by way of a nominee and they will purchase the Bali property with the assistance of an Indonesian citizen. There are risks associated with this and there are times when foreigners have lost the Balinese property. We do NOT recommend this method.  It is extremely important to use a reputable notary to handle your Balinese property transaction. They will advise on the best way to proceed. For those married to Indonesians, the law is constantly changing and you no longer require a pre-nuptial agreement but please check your options with a qualified lawyer.

Ask the notary or lawyer

Company - (HGB title)

You can form a foreign investment company known as a PMA. You can own the company 99% and the title of the Balinese property will belong to your company as an asset. However the company can only last for 30 years and foreign investment companies are highly regulated and must submit bi annually comprehensive reports and tax returns, it is not possible to set up a company and leave it dormant as in many other countries.
The startup costs is also quite high and you also need to prove there is a significant amount of working capital – normally in excess of US$100,000 in a account and bank statements need to be provided. Also only certain types of PMA licenses are allowed so you would need to investigate what type of license you can have. The land title will then switch also from Freehold to Hak Guna Bangunan (HGB) title which basically means rights to building.

Leasehold – Hak Pakai

Leasehold is very common in Bali. You can legally lease a Bali property for up to 25 years and many leasehold properties will have the option to extend for further periods of time. Some properties will already have had the lease extended meaning you can purchase the Bali property with more than 25 years remaining on the lease. You will not need an Indonesian citizen for this agreement and the lease will be 100% in your name. At the end of the agreement the land and any Bali property on that land will return to the owner, this is very unusual for this to happen though as most land owners will want to extend the contract before this happens and lots of agreements will have guaranteed extensions written in to the legal agreement. The cost of extending the lease does vary but the normal agreement is that you extend at the current land price in the area at the time. In the event of being unable to agree the price then an independent valuation is required by 3 reputable agents and then the average is applied. Some of the older agreements are based on the price of gold.Ask you notary about Hak Pakai di atas Hak Milik as an option, which means the Hak Milik title can be converted to Hak Pakai at the time of purchase. 

Pipil is land owned by Balinese families by inheritance and has never been formally registered with the Land Registration office. Before acquiring this type of land it has to be registered. This takes usually 4 to 6 months.

FEES – Guide only – these may vary

Property Sales Tax - When property is sold there is tax to be paid by both the selling and the buying party. This is 2.5% for the vendor and 5% for the buyer, for each, over the amount that is on the sales contract – for freehold and the 10% for leasehold is usually paid in full by the vendor (make sure this is agreed in advance). The tax has to be paid to the notary handling the transaction. Project developers usually include all in their pricing schemes, but when negotiating please ask how sales tax will be handled. Luxury Sales Tax - 20% Tax on sale of landed houses with a building size of 400m2 or more or an installed electricity capacity above 6.600 watt.

Notary fees - As the buyer chooses the notary then the notary fees are usually paid for by the buyer and you need to negotiate their fees with them also in advance. In Jakarta it is standard that each party pays 50/50 for the fees so again make sure this is clear in advance.
* The above information is a guide only and cannot in any way be taken as fact , we cannot also be held responsible for any changes of law. We will always recommend seeking legal advice before purchasing any Balinese property.

Bali Cool Property - trade name for P.T. Bali Goa Gong - specialising in the sale of property in Bali, villas for rent, villas for sale, land for sale and in general all property sales in Bali.