How to Buy Land in Bali – A Complete Legal Guide for Foreigners

Invest in Bali Property with Legal Confidence

Bali is one of the most sought-after property destinations in Southeast Asia. Its natural beauty, cultural richness, and strong tourism industry have attracted investors from around the world. Many foreigners dream of owning a piece of land on the Island of the Gods—whether for building a home, developing a villa, launching a retreat center, or holding property for investment.

However, buying land in Bali as a foreigner is not a straightforward process. Indonesian land laws are complex and strict when it comes to foreign ownership. Navigating these regulations requires expert legal guidance and compliance with national property rules. That’s where The Bali Lawyer can help. We are a professional law service based in Bali, offering reliable, legal assistance to foreign clients looking to acquire land in Indonesia.

Can Foreigners Buy Land in Bali?

Foreigners cannot directly own freehold land in Indonesia, including in Bali. The Indonesian Constitution restricts land ownership to Indonesian citizens only. However, this does not mean that foreigners cannot legally control or use land for residential or commercial purposes. There are several legal structures available that allow foreigners to secure land rights in Bali, such as:

  • Hak Pakai (Right to Use)

  • Hak Guna Bangunan (Right to Build)

  • Long-Term Lease Agreements

  • PT PMA (Foreign-Owned Company Structure)

Each of these structures has different legal implications, benefits, and limitations. Choosing the right legal method depends on your purpose for the land—personal residence, business, development, or investment.

Legal Land Titles in Indonesia: What You Need to Know

Understanding land titles is essential before proceeding with any land acquisition in Bali. The most relevant types for foreign involvement include:

Hak Milik (Right of Ownership)

  • The strongest form of land ownership in Indonesia.

  • Only available to Indonesian citizens.

  • Foreigners cannot legally hold land under Hak Milik.

Hak Pakai (Right to Use)

  • Legal for foreign individuals.

  • Allows foreigners to use land for residential purposes.

  • Issued for a period of up to 30 years, extendable up to 80 years.

  • The land must be used for a specific purpose, such as building a home.

Hak Guna Bangunan (Right to Build)

  • Often used by foreign-owned companies (PT PMA).

  • Allows construction of commercial or residential buildings.

  • Initially granted for 30 years, extendable.

  • Suitable for business or investment development.

Hak Sewa (Leasehold)

  • Long-term lease agreements, usually 25–30 years, extendable.

  • The land remains owned by an Indonesian, but full usage rights are granted to the lessee.

  • Common among foreigners buying villas or private homes.

  • Lease contracts must be properly drafted to ensure legal security.

Legal Options for Foreigners to Acquire Land in Bali

1. Leasehold Land Agreement

This is the most popular and straightforward method for foreigners. You sign a long-term lease with an Indonesian landowner, giving you legal use of the land for a specified period. You can build, live, or operate a business on the land depending on zoning and permit conditions.

To protect your rights, the lease should be drafted by a licensed legal professional, registered with the Indonesian land office (BPN), and clearly state terms for extensions, inheritance, sale, or transfer.

2. Hak Pakai for Residential Use

Foreign individuals can apply for a Right to Use (Hak Pakai) title on land to build or own a residence. This option is only available for properties that meet specific zoning and land use criteria. The application is made to the Indonesian National Land Agency, and approvals are issued under strict conditions.

This method is suitable for long-term residents who intend to live in Bali legally, under a KITAS or KITAP visa.

3. PT PMA for Commercial Use

If your goal is to develop or invest in property for business purposes, establishing a foreign-owned company (PT PMA)is the most secure and legal option. A PT PMA can acquire land under Hak Guna Bangunan, enabling you to develop villas, resorts, shops, or rental properties.

The land is registered under the company’s name, not your personal name, giving you a stable legal structure for ownership and operations. Our legal team assists with PT PMA formation, land acquisition, and licensing.

The Risks of Using Nominee Structures

Some foreigners attempt to buy land using an Indonesian nominee—placing land under the name of a local individual with a side agreement granting use or control. This is a highly risky and illegal method. Nominee arrangements are not recognized under Indonesian law and can result in:

  • Loss of property

  • Legal disputes

  • Government seizure

  • Immigration or criminal charges

The safest and most responsible way to secure land in Bali is through legal ownership structures recognized by the Indonesian government. At The Bali Lawyer, we only handle legitimate, fully compliant transactions.

The Process of Buying Land in Bali Legally

Our law firm follows a detailed and transparent process to ensure your land acquisition is legal, protected, and aligned with your goals:

1. Property Due Diligence

Before any agreement is signed, we verify:

  • Ownership status

  • Land certificate authenticity

  • Zoning and land use designation

  • Mortgage or encumbrances

  • Disputes or legal history

Due diligence is critical to avoid buying land with unclear ownership, disputes, or legal restrictions.

2. Agreement Drafting and Review

We draft a legally binding agreement that protects your rights, whether it’s a lease, Hak Pakai contract, or purchase through a PT PMA. All terms are clearly outlined, including payment schedule, use rights, extension clauses, and dispute resolution mechanisms.

3. Land Office Registration

The transaction is registered with the BPN (Badan Pertanahan Nasional), the National Land Agency. This ensures the land title or lease is officially recorded and legally enforceable.

4. Tax and Reporting Compliance

We assist in the handling of land and property taxes, including:

  • Transfer taxes (if applicable)

  • Leasehold tax declarations

  • Annual land taxes

Staying tax-compliant protects you from fines and ensures your transaction remains fully legal.

5. Building and Usage Permits (if needed)

If you plan to build, renovate, or operate a business on the land, we help you obtain:

  • Building permits (IMB or PBG)

  • Environmental permits (AMDAL or UKL/UPL)

  • Business licenses (OSS-based NIB or sector-specific permits)

We ensure your land use complies with Bali’s zoning laws and local regulations.

Ongoing Legal Support for Property Owners in Bali

Owning or leasing land in Bali comes with ongoing legal responsibilities. Our firm provides continued assistance with:

  • Lease renewals and extensions

  • PT PMA compliance and reporting

  • Permit and licensing renewals

  • Contract updates or modifications

  • Dispute resolution and mediation

We are committed to helping you maintain full legal compliance and peace of mind throughout your land ownership or use.

Zoning and Building Regulations in Bali

Land use in Bali is controlled through regional zoning plans (RTRW). It’s essential to ensure the land you are acquiring is zoned for your intended purpose—residential, commercial, agricultural, or tourism.

Violating zoning laws can result in fines, construction bans, or legal enforcement. Before buying or leasing, our legal team checks:

  • Zoning classification (green zone, residential, tourism, etc.)

  • Building restrictions

  • Permissible usage

  • Infrastructure access

We advise you on whether the land is suitable for construction, rental, or development.

Why Choose The Bali Lawyer for Your Land Purchase?

  • Local Legal Expertise: Based in Bali, we understand the local land system, culture, and laws.

  • Foreign-Focused Services: We specialize in helping foreigners legally acquire and manage land in Bali.

  • Transparent Process: We provide clear documentation, accurate translations, and full visibility at every stage.

  • Risk-Free Transactions: We ensure all legal requirements are met to protect your investment.

  • Ongoing Legal Assistance: We are your long-term partner for permits, renewals, and legal matters related to your land.

Invest Safely and Legally in Bali Land

Buying land in Bali as a foreigner is possible—but only through legal and properly structured methods. Whether you want to build your dream villa, develop a business, or hold land for investment, The Bali Lawyer is here to guide you.

We help you avoid risky shortcuts, navigate Indonesian property law, and secure your land with confidence. Don’t take chances with your investment. Trust our experienced legal team to handle the entire process professionally, efficiently, and in full compliance with Indonesian law.

Contact The Bali Lawyer Today

Ready to buy land in Bali? Reach out to The Bali Lawyer for a consultation. Our expert legal team will assist you with safe, legal, and fully compliant land acquisition in Bali.

Let us help you turn your dream into reality—securely and legally.