How to Buy a House in Bali as a Foreigner: Legal Requirements, Ownership Options, and Smart Tips
r123-share-title

Last updated October 30, 2025 · 5 min read · by Yongky Yulius

House in Bali

Bali isn’t just a popular travel destination, it’s a place that captures hearts. Many foreigners who first arrive for a holiday or business trip often end up wanting to stay for good.

With its breathtaking beaches, rich cultural traditions, vibrant food scene, and welcoming locals, it’s easy to see why. Unsurprisingly, one of the most common questions among expats is: “How do I buy a house in Bali?”

If you’re asking the same thing, this guide will walk you through how to buy a house in Bali legally and safely, along with important requirements and practical tips to help you make the right move.

Can Foreigners Actually Own Property in Bali?

Yes, foreigners can buy property in Bali, but there are strict conditions and limitations you need to know about.

According to the Regional Office of the Ministry of Law and Human Rights in Bali (as cited by DetikBali, August 2023), foreigners holding a valid stay permit, including a Visa on Arrival, are allowed to purchase property in Indonesia.

However, the Indonesian government regulates what kind of property foreigners can buy, and at what minimum value.

Under Ministerial Decree No. 1241/SK-HK.02/IX/2022, the minimum property prices for foreign ownership in Bali are:

Landed house: Minimum IDR 5 billion (~USD 315,000)
Strata-titled apartment: Minimum IDR 2 billion (~USD 125,000)

Additionally, foreign land ownership is limited to 2,000 square meters (about half an acre). In some cases, this can be extended if the investment is considered to bring significant economic or social benefits to Indonesia.

How to Buy a House in Bali as a Foreigner: 3 Legal Pathways

Here are the most common and legal ways foreigners can buy property in Bali:

Buy Through a Valid Stay Permit (KITAS/KITAP)

The simplest legal route is to buy a property under your stay permit, such as:

KITAS – Temporary Stay Permit
KITAP – Permanent Stay Permit

While you won’t be able to hold Freehold Title (SHM), you can legally own property through these two types of land rights:

HGB (Hak Guna Bangunan – Right to Build)
Allows you to build and own structures on land you don’t own outright. It’s valid for 30 years and renewable for up to 80 years in total. Suitable for individuals or companies.
HP (Hak Pakai – Right to Use)
Gives you the right to use land owned by the state or another party. Also valid for up to 30 years and extendable. This is the most common option for individual foreign buyers.

Use a Local Nominee (Not Recommended)

This unofficial method involves using a trusted Indonesian citizen (a nominee) to purchase property on your behalf.

The property title (SHM) is in the nominee’s name, but private agreements are signed between the foreigner and nominee to acknowledge the foreigner’s rights.

Caution: This method is risky and not legally recognized. If any dispute arises, the Indonesian nominee is the legal owner in the eyes of the law. You also risk property seizure if the arrangement is flagged as illegal.

Bottom line: Avoid this method unless you fully understand the legal risks and have total trust in the nominee.

Buy Through a PT PMA (Foreign-Owned Company)

If you plan to use the property for business or investment, like running a rental villa, hotel, or restaurant, the best route is to establish a PT PMA (Foreign Investment Company) in Indonesia.

With a PT PMA, you can:

Own shares in an Indonesian legal entity
Conduct commercial activities (including property investment)
Buy and own land under the HGB (Right to Build) title in the company’s name

This is the most secure and recognized method for foreign investors looking to buy property in Bali for business purposes. The ownership term can last up to 80 years (30 years + 20-year extension + another 30 years).

How to Search for Property in Bali Online

Once you’ve figured out which route is right for you, it’s time to start house-hunting. One of the easiest ways to do this is through trusted property websites like Rumah123.com.

Here’s a quick step-by-step guide:

Visit https://www.rumah123.com
On the homepage, select “For Sale”, choose “House”, then filter by “Bali” and your desired location
To browse newly built homes, go to the “New Projects” tab and do the same
Explore the listings and reach out to sellers directly via WhatsApp or phone

Final Thoughts: How to Buy a House in Bali Safely and Legally

Buying a house in Bali as a foreigner is absolutely possible, you just need to do it the right way.

Whether you’re looking for a permanent home or an investment property, be sure to follow Indonesia’s legal framework.

Stick with valid stay permits, HGB or HP titles, or form a PT PMA if your goals are commercial. Avoid shortcut methods that could put your investment at risk.

Now that you know how to buy a house in Bali, take your time to explore your options, speak with legal advisors, and start planning your new life (or investment) on this beautiful island.