Why Bali?

Bali continues to be a dream destination for both lifestyle buyers and investors. Its unique mix of natural beauty, culture, and tourism infrastructure keeps demand high year-round.

Top reasons to buy:

• Strong Airbnb market with 80%+ occupancy in hotspots

• Affordable compared to Western markets

• Growing expat, nomad, and retiree populations

• New infrastructure (airport, toll roads, marinas)

• High-yield potential from short-term rentals

Can Foreigners Buy Property in Bali?

Yes—but not in the same way as Indonesian citizens. Foreigners cannot directly own freehold land but can invest through legal structures such as:

1. Leasehold (Hak Sewa)

• Most common method

• Long-term leases: 25–30 years, often extendable

• Legally secure if registered properly

• Allows full usage, resale rights, and income generation

2. Right to Use (Hak Pakai)

• Allows foreigners to use land for up to 80 years

• Must be used for residential purposes

• Requires KITAS (residency permit) or KITAP

• Only applicable on land zoned for residential use

3. PT PMA (Foreign-Owned Company)

• Allows full control of land under Hak Guna Bangunan (Right to Build)

• Best for commercial property and villa rentals

• Requires formal company setup and government compliance

• Eligible to apply for multiple licenses (e.g., rental, tourism)

What You Can’t Do

• Buy freehold (Hak Milik) under your own name

• Own land near temples, beaches, or strategic zones without zoning clearance

• Operate short-term rentals without appropriate business licenses

Important: Always conduct due diligence with a Bali-based legal advisor.

Is Bali Right for You?

✅ Ideal for:

• Investors targeting short-term rental income

• Lifestyle buyers wanting a second home or retirement base

• Entrepreneurs running boutique hotels or coworking/villa rentals

• Digital nomads with residency status

❌ Not ideal for:

• Buyers seeking freehold land without structuring

• Passive investors who want zero involvement (due to hands-on nature)

• Those uncomfortable with bureaucratic or legal complexity

Top Areas to Invest in Bali (2025)

Canggu

• Digital nomad and luxury villa capital

• Highest rental yields on the island

• New cafés, gyms, co-working spaces fueling demand

• Rapid price growth but nearing saturation in some zones

Uluwatu & Bukit Peninsula

• Emerging hotspot with surfing beaches and luxury cliffside villas

• Ideal for long-stay tourists and remote workers

• Lower entry prices than Canggu/Seminyak

Seminyak & Petitenget

• Established expat and tourist zone

• High-end restaurants and shops

• Strong Airbnb performance, but limited new land supply

Ubud

• Inland cultural and wellness hub

• Preferred by retirees, yogis, and spiritual travelers

• Great for boutique villas and retreats

Sanur

• Quieter, family-friendly, and rising in appeal with infrastructure upgrades

• Ideal for retirees or families

• New marina and harbor access increasing demand

Prices in 2025 (USD Estimates)

Rental Yields & Returns

Legal & Tax Considerations

• Notary & legal fees: ~1.5%–2.5%

• Lease registration (optional but recommended)

• Property tax (PBB): Very low—often <$100/year

• Rental tax:

  • Personal income tax: 10%–20%

  • Withholding tax for foreign landlords: 20% if no tax treaty

Licenses required for rentals:

• NIB (Business ID)

• Pondok Wisata (Villa Rental License)

Common Mistakes to Avoid

• Buying land or villas without checking zoning (residential vs. greenbelt)

• Failing to register leasehold contracts

• Trusting unlicensed agents or developers

• Not securing the correct rental licenses for Airbnb income

• Skipping due diligence on ownership history or building permits

Trends for 2025

• Uluwatu and North Canggu gaining interest as Canggu becomes crowded

• Off-grid villas and jungle eco-resorts on the rise

• Strong growth in long-term digital nomad rentals

• Increased enforcement of zoning and rental regulations

Conclusion

Bali remains one of the most exciting real estate markets in Southeast Asia—but it requires local knowledge, the right legal structure, and a clear investment plan. While foreigners can't buy freehold land, leasehold and company structures allow full control, income generation, and resale potential.

If you're looking for tropical ROI, lifestyle richness, or retirement flexibility, Bali in 2025 still delivers—if you buy smart, stay compliant, and focus on high-demand zones.