Can a Foreigner Buy Property in Bali — and How to Do It Legally in 2026

The short answer: yes, but not as outright "freehold" ownership. By law a foreigner — and nationality makes no difference here — cannot own land under Hak Milik (full freehold) title. That is a direct prohibition in Indonesia's Basic Agrarian Law (UUPA, Law No. 5 of 1960, Article 21). But there are three legal ways to use and control property on Bali, and thousands of foreigners use them. Three legal routes: 1. Leasehold (Hak Sewa) — a long-term lease. You sign a lease of a villa or land for 25–30 years with the right to extend. It is a private contract and does not require a residence permit — the simplest and most common way to buy a villa for yourself or to rent out. The downside: it is not "forever", and the residual value declines toward the end of the term. How leasehold differs from freehold — in a separate article. 2. Hak Pakai (Right to Use) — held directly in your own name, but you need a residence permit (KITAS or KITAP). The term is 30 years, extendable by 20 and then renewable for another 30 (up to 80 years total). Suitable for a single residence for your own use. Legal basis: Government Regulation No. 18/2021 (and the earlier No. 103/2015 that first opened this option to foreigners). 3. PT PMA (a foreign-owned company) + HGB (Right to Build). If you are buying to rent out or as a business, you set up an Indonesian company with foreign ownership (PT PMA), and it holds the property under HGB (Hak Guna Bangunan) title for 30 + 20 + 30 years. Important update: since October 2025 the minimum paid-up capital of a PT PMA has been cut from IDR 10 billion to IDR 2.5 billion (Ministry of Investment Regulation No. 5/2025) — the entry barrier is now markedly lower. The process and timelines for KITAS and PMA — in a separate article. What you must NOT do — the nominee scheme. You may be offered to register a villa as full freehold (Hak Milik) in the name of a "trusted" Indonesian. This is illegal: Indonesia's Supreme Court voids such arrangements, and formally you hold no rights to the property at all — you can lose the entire amount. Never agree to a nominee structure, however "proven" the middleman claims to be. A note on nationality. There are no citizenship-based restrictions — the rules are the same for all foreigners. The practical hurdle is usually moving the money: confirm the payment route with your bank and notary in advance; settlement is normally in US dollars or rupiah. How to buy — step by step: 1. Choose the property and check the land's zoning (RDTR) — whether housing/rental is even allowed there — and the land certificate. 2. Run due diligence through a licensed notary (PPAT): clean title, no encumbrances or disputes. 3. For a new build — vet the developer (track record, PBG/SLF permits, completion history). 4. Sign the agreement before a notary (leasehold) or register the right/company (Hak Pakai / PT PMA). 5. Make the payment via the agreed route. What to choose for your goal: — to live there yourself or visit occasionally — leasehold (simpler) or Hak Pakai (if you hold a residence permit); — to buy as a rental business — PT PMA with HGB. The key rule: there is always a legal route on Bali, and it is no more expensive in the end than the "grey" schemes — with incomparably less risk. "Saving" via a nominee means putting the entire sum at risk. Sources: UUPA (Basic Agrarian Law No. 5/1960, Art. 21), Government Regulation No. 18/2021 on land rights, Ministry of Investment Regulation No. 5/2025 on PT PMA capital.