Yes, Americans and other foreigners can buy property in Bali, but there are some important things to know before you dive in. Unlike some countries, Indonesia doesn’t allow foreigners to hold full freehold ownership of land. However, there are still ways for Americans to own property in paradise.
Leasehold vs. Freehold
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Leasehold: This is the most common option for foreigners in Bali. You essentially purchase the right to use the land and any buildings on it for a set period, typically 30-80 years. Leasehold properties can be a good option for villas or investment properties.
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Freehold: This grants full ownership of the land and buildings. However, in Indonesia, freehold (Hak Milik) is only available to Indonesian citizens.
Owning Through a Company
Americans can establish a foreign-owned company (PT PMA) to purchase property in Bali. This company can then hold the land title under a "Hak Pakai" (Right to Use) or "Hak Guna Bangunan" (Right to Build) designation. You’ll own shares in the company, which effectively gives you control over the property.
Important Considerations
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Legalities: Navigating the legalities of buying property in Bali can be complex. It’s crucial to consult with a reputable lawyer who specializes in Indonesian property law.
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Restrictions: Foreign-owned companies can’t own all types of property in Bali. There may also be restrictions on land size and location.
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Long-Term Plans: Leasehold has a finite term. Factor in renewal costs and potential difficulties extending the lease at the end of the term.
Alternatives to Land Ownership
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Leasehold Properties: Many villas and apartments in Bali are available for purchase under leasehold agreements.
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Long-Term Rentals: Consider long-term rentals if property ownership isn’t your main priority.
Living the Dream
Owning property in Bali can be a fantastic way to experience Indonesian culture and invest in a beautiful location. By understanding the legalities and ownership structures, Americans can turn their dream of a Balinese getaway into reality.
