How to Buy Property in Bali as a Foreigner: The Deal, Step by Step

In brief: to buy property in Bali as a foreigner, you take a leasehold or another structure open to foreigners, never freehold (Hak Milik). Buying a villa in Bali, or an apartment or hotel unit, runs in eight steps: choose, reserve, verify and sign, pay by construction stage, follow the build, inspect at completion, place under management, and eventually exit. One document protects you at each step, from the reservation terms to the notarial lease deed, the SLF certificate of fitness for use and the management agreement.

This guide explains buying property in Bali as a foreigner in the order the deal actually happens. It does not repeat what to verify; that lives in our due-diligence checklist. The ownership structures themselves are compared in leasehold vs freehold in Bali. Here we follow one purchase from the first shortlist to the day you might sell.

How to buy property in Bali: the eight steps at a glance

• Choose: strategy, district, format and developer.
• Reserve: a deposit holds the unit while you check it.
• Verify and sign: due diligence, then the lease agreement and notarial deed.
• Pay by stage: each instalment follows verifiable construction.
• Follow the build: dated reports and site visits.
• Complete: inspection, snag list, SLF, guarantees, keys.
• Manage: management agreement, owner statements, payouts.
• Exit: assign the remaining lease term to a buyer.

Step 1: How do you choose the right property in Bali?

Most regret in Bali starts before any document exists: the buyer chose the wrong format for the wrong reason. Four decisions come first, and they turn a very large market into a short list.

Strategy and budget

Decide what the property is for: your own seasons on the island, rental income, capital growth, or a mix. Set a total budget in rupiah that covers transaction taxes, notary fees and furnishing, not only the contract value.

District

Bali is not one market. Nusa Dua, Ungasan and Uluwatu on the Bukit peninsula, Canggu, Ubud and Sanur each have their own guest profile, infrastructure and zoning. Compare them in the best areas to buy property in Bali, and read our Bukit peninsula guide if the south is on your list.

Format: villa, apartment or hotel room

A private villa gives control and privacy, an apartment lower upkeep, and a branded hotel unit professional operation with less say over use. See villa, apartment or hotel room.

Developer track record

For an off-plan villa in Bali, the developer is most of the risk. Look for projects where construction has been completed, dated progress reports, in-house engineering and a named hotel operator. HQC, for context, was founded in 2023, has 814 units across 7 complexes in its portfolio (one, Pandawa, still in design), and works with Wyndham, Accor and Radisson; the evidence is on Why HQC.

Step 2: How does a reservation work?

Once you pick a unit, the developer takes it off the market in exchange for a reservation deposit. The deposit buys time: a fixed period in which you run due diligence and review the contract before committing to the full deal.

Ask for the reservation terms in writing before you transfer anything: how long the unit is held, whether the deposit is refundable and on what conditions (for example, a defect found in the title or permits), and whether it is credited against the first payment. Terms differ between developers and projects.

Step 3: What do you sign, and how is the deal structured?

Due diligence before signing

Before signing, you or your lawyer confirm the land certificate at the National Land Agency (BPN), the zoning, the PBG building approval and the identity of the company you contract with. The full sequence is in the eight-point checklist; do it during the reservation window, not after.

The lease agreement and the counterparty

A leasehold (hak sewa) is a private contract under the Indonesian Civil Code, whose lease provisions start at Article 1548. Under Article 1576, a lease survives the sale of the land unless the contract says otherwise. Rights to assign, sub-lease or extend exist only if the contract grants them, so read those clauses closely (Lexology overview).

On an off-plan leasehold, the buyer typically signs a lease or pre-lease agreement during construction, followed by a notarial lease deed; the exact sequence varies by developer, so ask for it in writing. This differs from a PPJB, the conditional sale-and-purchase agreement used for titles such as strata or HGB. The counterparty should be a registered Indonesian company that controls the land for the whole term. At Satori, for example, the leasehold is 32 years plus a 30-year extension, and buyers sign with the registered Indonesian entity PT HQC.

If you prefer a registered title, Government Regulation (PP) 18 of 2021 lets foreigners with immigration documents hold a house on Hak Pakai (30 + 20 + 30 years) or a strata unit, subject to minimum purchase thresholds and land-size limits (UNCTAD Investment Policy Monitor). Nominee arrangements, where an Indonesian holds Hak Milik on a foreigner's behalf, are void under Article 26(2) of the Basic Agrarian Law (Law 5 of 1960); the structures that do work are compared in leasehold, Hak Pakai and PT PMA.

Who handles the deal: a notary or a PPAT?

Indonesia has two related offices. A notary (notaris, Law 30 of 2004 as amended by Law 2 of 2014) draws up general deeds, including lease deeds. A PPAT, a land-deed official (PP 37 of 1998 as amended by PP 24 of 2016), draws up deeds that transfer registered land rights and must be licensed for the regency where the land sits. Many professionals hold both appointments (Bali Property Rules). A lease deed is typically a notarial deed; a Hak Pakai or strata transfer needs a PPAT. Appoint your own lawyer as well: the notary is neutral and does not advise either side.

Language and currency of the contract

Law 24 of 2009 and Presidential Regulation 63 of 2019 require an agreement with an Indonesian party to be in Indonesian, with an English version for the foreign party; the parties can agree which prevails (ABNR). Law 7 of 2011 on Currency requires rupiah for transactions in Indonesia, so expect contract amounts in IDR (Makarim & Taira S.).

Step 4: How is the payment schedule tied to construction stages?

At Satori, for instance, the published terms are an instalment plan through the end of construction. Whatever the schedule, each payment should follow work you can see and verify; the table shows what proof to ask for at each stage. How to assess construction risk more broadly is covered in buying off-plan property in Bali.

Step 5: How do you follow construction from abroad?

Most foreign buyers are abroad during the build, so ask for dated reports that name the stage reached and match it to the payment schedule. HQC publishes these on the construction page; how to read them and what a site visit should show is covered in buying off-plan property in Bali.

Step 6: What happens when construction is completed?

Completion runs in four parts; do not sign the acceptance record until all four are done.

• Inspection: a walkthrough, ideally with an independent inspector, against the specification in your contract.
• Snag list: a written list of defects, each with a deadline for correction, re-inspected before acceptance.
• SLF: under PP 16 of 2021 the SLF (Sertifikat Laik Fungsi, certificate of fitness for use) confirms that the finished building matches its PBG approval and is fit for use.
• Guarantees and keys: written warranty terms and the keys to your unit, together with the as-built documents.

For reference, HQC gives a 10-year structural guarantee and a 12-month finishing guarantee on its projects. The engineering behind them is described on the quality page.

Step 7: How do management and rental payouts work after completion?

If the property will earn rental income, it moves under a management agreement once construction is completed. It is a separate contract from the lease and deserves the same scrutiny.

• Who manages: an international hotel operator running a branded programme, or an independent villa manager. Operators bring distribution and standards; independents give owners more flexibility.
• What the manager charges and how costs are split between the owner and the rental pool.
• Owner statements: how often you receive them, and what they show (occupancy, gross revenue, costs, net payout).
• Payouts: how often they are paid and to which account. Statements are usually calculated in rupiah; ask whether the manager converts before transfer and who bears the exchange and bank charges.
• Taxes withheld: what the manager deducts at source before paying you.

Tax depends on the structure. PP 34 of 2017 has imposed a final tax on gross rent from land and buildings since 2 January 2018, while hotel and lodging services fall outside that regime; on 18 August 2026 the tax office (DGT) confirmed this is not a new tax for 2027 (DDTC News). Owners who are not Indonesian tax residents (fewer than 183 days in a 12-month period) are generally subject to Article 26 withholding instead, which a tax treaty may reduce (DGT). Licensing for short-term rentals is covered in villa management and rental licences.

Step 8: How do exit and resale work?

When you sell a leasehold, you sell the remaining lease term, usually by a notarial assignment of the lease. The right to assign must already be in your contract, and some leases require the landowner's or developer's consent. Buyers value the remaining term, the extension terms, the condition of the property and its rental track record.

A long remaining term with a pre-agreed extension sells more easily than a lease near its end. Keep the lease deed, the SLF, owner statements and maintenance records in order from day one; a future buyer's lawyer will ask for them.

What does buying property in Bali cost on top of the contract value?

Budget for more than the contract value. As of 2026, the main items are: VAT (PPN) where a VAT-registered developer sells new property; BPHTB, a regional acquisition duty usually paid by the buyer (Law 1 of 2022); final income tax on the transfer, usually paid by the seller (PP 34 of 2016); notary and, where relevant, PPAT fees; and your own lawyer's fee (PwC Worldwide Tax Summaries). BPHTB and the seller's transfer tax attach to registered titles such as Hak Pakai or strata; a lease is generally taxed as rent instead, which is why the structure decides the bill. After purchase, budget for the annual land and building tax (PBB). Check 7 of our due-diligence checklist covers how to confirm taxes are settled.

Frequently asked questions

How do I buy property in Bali as a foreigner?

You buy through a structure open to foreigners: a leasehold contract, Hak Pakai or strata title. The process is to choose a property, reserve it, run due diligence, sign the agreement before a notary, pay in stages, accept the completed building and, if you rent it out, sign a management agreement.

Is the reservation deposit refundable in Bali?

Only if the reservation terms say so. Ask for written terms that state the hold period, the refund conditions (for example, a defect found during due diligence) and whether the deposit counts towards the first payment.

Who handles the deal in Bali: a notary or a lawyer?

Both, in different roles. The notary (notaris, often also a PPAT) prepares and certifies the deed and is neutral; your own lawyer reviews the contract and protects your interests.

How does the payment schedule work for an off-plan villa in Bali?

Payments are usually split into instalments tied to construction stages, such as foundations, structure and finishing. Each payment should follow a stage you can verify through dated reports or a site visit. Our guide to buying off-plan property in Bali explains how to judge the stages.

What are the steps to buy a villa in Bali?

There are eight: choose the property, reserve it with a deposit, run due diligence and sign the lease before a notary, pay in stages tied to construction, follow the build, inspect and accept at completion, place the villa under management, and later sell the remaining lease term.

How do I sell my Bali property later?

You sell the remaining lease term by a notarial assignment of the lease, which requires an assignment right in your contract. Keep the lease deed, SLF and rental records ready for the buyer's due diligence.

Buying in Bali is manageable when each step has its document and each payment has its proof. If you would like to walk through a specific project, the structure behind it and its construction reports, talk to the HQC team or request the project catalogue. You can also browse our projects.