Despite the intricacies of buying residential and commercial properties in Bali, it is still possible to become their full owner. The procedure for buying real estate in Bali consists of several stages:
- Market analysis. The first thing you need to do is research the real estate market. Determine your needs and budget and select your preferred areas. Explore available properties through agencies or online platforms.
- Working with a real estate agency. Contact a reliable agency and check its reputation and experience. Estate agents will tell you how to profitably and correctly buy a home in Bali, and help you find suitable properties and conduct legal due diligence.
- Viewing options. Inspect each property to check its condition, evaluate the area and whether it meets the parameters that are important to you, and consider other aspects.
- Working with a lawyer. The selected agency will most likely offer you the services of a lawyer specialising in matters related to buying real estate. A professional will help you check paperwork and ensure the safety of your transaction.
Once you are through the above stages of buying real estate in Bali, you will move on to closing a deal. After all checks and reviews, the lawyer will conclude an agreement. You will sign it and make payment for the transfer of ownership. Once the deal is done, the property must be registered in your name with the state register.
Content:
- How to buy property in Bali for foreigners
- Stages of real estate registration procedure in Bali
- Real estate taxes in Bali
- How to conduct a remote purchase of real estate
- We will help you become a real estate owner in Bali
How to buy property in Bali for foreigners
It is important to note that foreigners buying real estate in Bali face ownership restrictions. Nationals of other countries cannot purchase it in full ownership (freehold or, in Indonesian, Hak Milik title). This is only available to Indonesian citizens.
Then how can a foreigner become the owner of property? If you are interested in buying and registration of real estate in Bali in 2024, there are alternative ways. One of them is entering into a long-term lease (leasehold agreement). Under this title, a foreigner receives the right to lease land for a long period, which can be extended up to 100 years. The lessee can sell their property.
In addition, foreign nationals can set up a foreign-owned investment company (PMA). This allows them to establish an Indonesian legal entity, which will acquire and own the property. However, in this case, it is necessary to meet certain investment requirements and actively participate in the business.
How to buy real estate in Bali with a mortgage?
Foreigners cannot purchase property with a mortgage. However, if you are buying property from a developer, you can use instalment payments. Almost all local developers provide an interest-free instalment plan, usually for up to 18 months.
Stages of real estate registration procedure in Bali
The real estate registration procedure consists of several stages. The main ones are:
- Concluding a preliminary agreement with the seller. It should outline the terms and conditions of the transaction, including the price, dates/deadlines, obligations of the parties, and other important details.
- Paying a deposit to the seller as per agreement. Usually it is 10-30% of the property price.
- Verifying the compliance of all terms and conditions stipulated in the preliminary agreement with your interests and requirements.
The lawyer or consultant you work with should prepare an agreement based on the preliminary agreement. It must contain all the agreed terms, including the rights and obligations of the parties, the cost, payment methods, and ownership transfer date. Once the document has been approved, all parties are required to sign it in the presence of a notary or other authorised person. After that, the agreement comes into force. Upon fulfilling all obligations, the buyer officially receives the property title.
The last step is registration. A qualified purchaser must register their ownership with the National Land Agency (Badan Pertanahan Nasional, or BPN). To do this, you will need to provide the necessary documents: a purchase and sale agreement, proof of tax payment, and other mandatory papers.
Real estate taxes in Bali
Let’s take a look at costs of buying and selling real estate in Bali. First, you need to pay VAT in the amount of 11% of the total property price. This tax in Bali for non-residents is levied as part of the cost of acquiring the property. In addition, the buyer is obliged to pay 1% of the total cost to the notary for executing the transaction. These costs are associated with the involvement of government agencies in the registration of the property title and the transaction.
If the owner rents out their property, they will also be required to pay rental income tax at a rate of 10%.
How to conduct a remote purchase of real estate
You can purchase real estate without visiting the country. Moreover, more than 50% of agreements are now executed remotely. There are several options, with the most common being:
- Making a power of attorney. In many cases, in order to conduct transactions, foreign nationals grant a power of attorney to a local lawyer or representative so that they can act on their behalf in all necessary procedures. The document must be properly executed, registered, and notarized, and contain clear instructions and powers for the representative.
- Using online technologies and electronic signatures. Online platforms and electronic documents can also be used to exchange data and sign agreements between parties.
We will help you become a real estate owner in Bali
Buying a resort villa in Bali as a holiday home or permanent residence offers you a number of benefits. These include:
- Pristine nature, beautiful beaches, and a tropical climate, which can be enjoyed all year round.
- Low cost of real estate compared to some other countries in Asia, such as Thailand and Singapore.
- Tempting rental and passive income opportunities. The average payback period for residential property is eight years, and ROI starts at 14%.
- A variety of property options, from villas to apartments, allowing you to choose the right unit, which matches your budget and needs.
- Well-developed tourist infrastructure, restaurants, shops, spas, and entertainment venues at every turn. You are surrounded by all the delights of resort life combined with amazing landscapes.
Our aggregator site automatically collects and updates daily information about the various real estate units offered on the market. This allows you to explore a wide range of properties in a single place and compare their features, prices, and locations. For your convenience, thoughtful filters allow you to customise your search criteria and find properties that meet all your requirements. This saves time and makes the selection process easier!
Take a step towards bringing your wish—buying a house or apartment in Bali—to life today. Start exploring the offers, and we are confident you will find suitable options!