How to buy a villa in Bali, step by step.
Buying in Bali as a foreigner is legal and common. What goes wrong is almost never the law: it is a skipped document. Here is the whole process, in the order it happens, with <b>the twelve checks to run before any money moves</b>.
First: what exactly you are buying
A foreigner cannot own land outright in Indonesia. What you buy is a leasehold: a long-term right of use, registered in your name before a notary, with the renewal in writing. The villa built on it is yours to rent, use, sell or leave to your heirs. There is a second legal route, HGB through an Indonesian company, and both are explained with terms and costs in the leasehold and freehold guide.
- A registered contract. The term and renewal conditions, in writing before you pay.
- The building. It is yours: you rent it, use it and transfer it.
- An exit. The leasehold is sold and inherited like any other contractual right.
Step 1 · The zoning of your plot, not the area
It is the most expensive mistake made in Bali, and the easiest to avoid. A beautiful villa on land without tourism zoning is a villa you cannot legally rent by the night. And neighbouring plots can carry different zoning from yours.
| Land colour | What it allows | What it means for you |
|---|---|---|
| Pink · tourism | Commercial and nightly rental | What you want. Villas here can be rented by the night legally |
| Yellow · residential | Housing and long stays | Monthly or yearly rental. Nightly rental is not allowed |
| Green · agricultural | Farming, protected land | Do not build. Demolition orders are real and enforced |
Step 2 · The papers the villa must have
- Clean land title, checked by the notary: no open claims and no disputed inheritance.
- Building permit (PBG) and, once finished, the certificate of function (SLF). Without both there is no legal rental.
- Legal road access, in writing. On the Bukit many roads are private.
- Tax, counted from day one. The 10% local tax on rental income (PHR), the annual land and building tax, and transfer tax on purchase.
Step 3 · The contract and the notary
The land does not belong to the government. In each of our projects it belongs to an Indonesian owner or family, and the leasehold is a private contract between that person and you, signed before an Indonesian notary. This is what that contract has to say:
| The question | What the contract must say |
|---|---|
| Can the owner refuse to renew? | No. Renewal is written in as the owner's obligation from day one: 25 + 25 years |
| Can the owner set any price? | No. It is set at market value at renewal, by independent valuers, not by the owner |
| What do you pay at renewal? | Only the land. Never the villa built on it |
| Can I sell before the end? | Yes. The leasehold transfers for the years remaining |
| Can my children inherit it? | Yes, like any other contractual right |
You do not need to be in Bali to sign: everything can be closed with a notarised power of attorney by video. In our case, the contract, the document checks and the notary are handled by our own legal team in Spain and in Bali.
Step 4 · How you pay
There is no Indonesian mortgage for foreigners. Anyone promising one is selling you something else. Buyers usually pay from savings, a sale or an inheritance, or borrow at home against a property they already own.
If you buy completed, you pay on purchase and it earns rent from the first month. If you buy off-plan, payment follows build milestones:
| Stage | What happens |
|---|---|
| 1 · Reservation | The villa comes off the market and the plot is assigned to you |
| 2 · The land | The leasehold is signed and paid before a notary. That part is yours from that day |
| 3 · Build payments | Six payments, each released when a stage of the build is verified, not by date |
| 4 · Handover | The final 10%, when you receive the keys. Not before |
Step 5 · From the keys to the first payout
Once the villa is handed over, it needs furnishing, listing and running. If the same team that built it does that, you touch nothing: it goes live on Airbnb, Booking and direct, it is cleaned and maintained, and you get a report with every income and cost line before each payout. Completed villas carry a one-year structural warranty, and the ones we manage are insured with Zurich. What management includes and costs is in the villa management guide.
Seven questions for anyone selling you a villa
Including us. If they cannot answer clearly and in writing, you have your answer.
- What exactly am I buying, and for how long? Term and renewal, in writing, before any payment.
- Can I see one of your villas finished and rented? An address, a listing and its reviews. Not a render.
- What occupancy do the villas you already manage get? The real figure for theirs, not a projection for yours.
- Who manages it afterwards, and for what fee? If it is "a partner we work with", ask to meet them.
- What is not included in the price? Furniture, tax, utilities. Ask for the full figure.
- Who does the legal checks and the notary? If it is a third party you never meet, that risk is yours.
- How do I sell if I want out, and who has done it already? It should be a normal question, not an awkward one.
The checklist: twelve things before any money moves
| # | What to check | Why |
|---|---|---|
| 01 | Zoning certificate for the exact plot | Pink or tourism if you will rent by the night |
| 02 | Clean land title, checked by your notary | Yours, not the seller's |
| 03 | Building permit (PBG) and certificate of function (SLF) | Without them there is no legal rental |
| 04 | Term, renewal and transfer rights in the deed | Before a notary, not in an email |
| 05 | Legal road access | On the Bukit many roads are private |
| 06 | The developer's finished projects | Ask for the addresses and look them up on Airbnb |
| 07 | Occupancy and reviews of what they already manage | Their real portfolio, not a projection |
| 08 | Who manages afterwards, the fee and what it covers | Whatever is not included, you pay |
| 09 | The payment schedule and what each payment is tied to | Build milestones, not dates |
| 10 | What happens if the build runs late | If the contract says nothing, that is your answer |
| 11 | Tax: rental, annual and transfer | In Indonesia and in your country of residence |
| 12 | How you would exit | Who buys, and how a leasehold transfer works in practice |
What people ask us most.
Can a foreigner buy a villa in Bali?
Yes. It is a legal and common transaction, either as a leasehold registered in your name or through the HGB route with an Indonesian company. What is not safe is putting the property in a trusted Indonesian's name, the so-called nominee.
Do I have to travel to Bali to buy?
No. The whole process can be closed with a notarised power of attorney by video. We still recommend coming: many investors spend a few nights in the villa they want to buy before signing.
Can I get a mortgage in Indonesia?
No, Indonesian banks do not lend to foreigners for this. Buyers usually pay from savings or borrow at home against a property they already own.
How long does buying take?
A completed villa earns rent from its first month as yours. Off-plan, the build takes 13-14 months for a 1-bedroom villa and 15-18 for a 2-bedroom.
How much does a villa in Bali cost?
Our villas start at €110,000 buying directly from the developer. What each one earns and how it is calculated is in the returns guide.
The other guides.
Want it with your own numbers?
We show you the villas available, what each one earns today and what would be left for you, with our real figures in front of you. You talk to the developer, not to a salesperson.