What is safe in Bali, what is not, and how to check it yourself.
The honest answer is that it depends entirely on how you buy. There are ways of buying in Bali that have caused problems for years, and ways you can verify from your sofa before signing anything.
What genuinely is not safe: the nominee structure
It means putting the property in the name of a trusted Indonesian to get around the ban on foreigners owning land. On paper the foreigner owns nothing, and it has been causing problems for thousands of buyers for years. If someone offers it to you, that is where the conversation ends.
What you can check before signing
- That the villa exists and is letting today. Ask for the Airbnb and Booking links of the same developer's villas with their ratings. You open them from home, with real guest reviews. If all you get is renders, that tells you what you need to know.
- The zoning of the land. Not all land in Bali permits tourist accommodation. It is the first item of due diligence and it has to be in writing.
- The renewal contract. That the 25-year extension is obligatory for the landowner, and that the price is set by three independent valuers, not by him.
- Who manages it afterwards. If the builder disappears after handover, the occupancy risk is entirely yours.
Developer red flags
| What gets promised | Why it is a red flag |
|---|---|
| Guaranteed 9-10% return | The guarantee comes out of your own purchase price and usually lasts two or three years. Projects that promised it, in Bali and elsewhere, ended badly |
| Legally paying 0% tax | It does not exist. If the company pays almost nothing in Indonesia, your tax authority can attribute the income to you anyway |
| 90-year freehold | That number is not in Indonesian agrarian law. The maximum on the HGB route is 80 years |
| The villa is free, infinite ROI | It is a loan secured on your own home. The debt is still yours |
| Flights and trip paid if you invest | That is a selling cost built into the price of the villa |
| 15-25% returns | Almost always gross, not net. Ask whether it is before or after costs |
The risk that is real and cannot be removed
The land is not yours in full ownership, and no structure fixes that. What can be done is to make renewal contractually guaranteed, have the market set the price rather than the owner, and get your investment back before half the term has passed. If that still makes you uncomfortable, it is a legitimate reason not to invest here.
How we do it
We are the developer and also the operator afterwards: the same team that built the villa cleans and maintains it. There is no third party to call when something breaks. And the deposit is 100% refundable if you come to see the villa and it does not fit: we take the risk out of the first step. Plenty of investors stay a few nights in the very villa they are looking at before signing.
What people ask us most.
Is it safe to invest in Bali?
It depends how you buy. The nominee structure is not safe and we do not touch it. A properly signed leasehold, with contractually obligatory renewal and a price set by independent valuers, is.
What is the nominee structure?
Putting the property in an Indonesian's name to get around the ban on foreign land ownership. On paper you own nothing.
How do I verify a villa before buying?
Ask for the developer's Airbnb and Booking links for villas letting today, with their reviews. If there are only renders, that tells you what you need to know.
Can I see the villa before signing?
Yes, and the deposit is 100% refundable if you come and it does not fit.
What if I cannot travel?
The whole process can be closed with power of attorney over video, without leaving home.
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.