FAQ

A wide range of property is for sale on Bali, including villas, houses, apartments and land. Many homes feature traditional Balinese architecture and design elements, while others are built with a more modern look. Depending on the location, you can find properties with easy access to Bali’s cultural attractions and nightlife, or in a setting of peace and nature. It is essential to work with a reputable agent to find a property that suits your wishes and budget.

The average price of property on Bali varies widely depending on location, property type and size. In general, villas and houses range from around €200,000 to several million, while apartments and land can start from €70,000. To get a clear picture of prices in the area you are interested in, we recommend working with a reliable partner who knows the local market.

Some of the most popular areas to invest in on Bali are Uluwatu, Jimbaran, Seminyak, Canggu, Ubud, Tabanan and Nusa Dua. These areas offer a wide range of options, from beachfront villas to traditional Balinese homes. Each area has its own subculture and history. Seek advice from an experienced party if you would like to know more about the different areas of Bali.

Homeowners on Bali can earn significant income by renting out their property. Short-term rentals to tourists and long-term rentals to expats are two of the most popular options. The rental market on Bali is very active, with strong demand for both short and long stays. It serves a broad range of tenants, including short-term holidaymakers, digital nomads, long-term expats and local residents. Rental rates can vary considerably depending on the type, size and location of the property.

Before buying property on Bali, it is important to understand the local legislation or to be advised by an experienced party. As a foreign investor, you currently cannot obtain a mortgage in Indonesia. However, JARFIS Property Group can help you release the equity in your home(s) in the Netherlands and will find properties that match your wishes. You will be guided through the entire process from A to Z.

The transfer of ownership of a property on Bali involves drafting and signing a purchase agreement, paying the purchase price and taxes, and completing the transfer at the local Land Registry. It is important to work with experienced legal professionals throughout the process to ensure that you comply with current Indonesian laws and regulations.

Foreigners can own property on a freehold basis, which includes ownership of the land, by setting up a company in Indonesia, known as a PT PMA. The process involves finding a reliable notary to establish the company, drafting and signing the required legal documents, opening a bank account and completing the transfer of ownership. It is essential to work with experienced lawyers throughout the process to ensure compliance with Indonesian laws and regulations.

To buy property on a leasehold basis as a foreigner, you sign a lease agreement with the landowner with the help of a legal adviser. Hak Sewa means that you hold a lease from the lessor that allows you to use the property for a limited number of years, typically 25 years or more. This option is particularly popular with foreign investors because a leasehold property is relatively easy to acquire and there are no costs for setting up and maintaining a company.

As a foreign investor, you currently cannot obtain a mortgage in Indonesia. Do you have equity in your home in the Netherlands? Our team has the in-house expertise to help you release that equity, so you can finance your purchase on Bali. JARFIS Property Group will find properties that match your wishes and budget. You will be guided through the entire process from A to Z.

Foreigners can buy freehold property on Bali by setting up a foreign-owned company, known as a PT PMA. It is essential to work with experienced lawyers throughout the process to ensure that you act in accordance with current Indonesian laws and regulations. JARFIS Property Group can support you with both leasehold and freehold purchases throughout the entire process, from start to finish.

Foreigners can buy leasehold property on Bali under a lease agreement. These agreements usually run for 25 to 30 years and can be extended. The process consists of drafting and signing a lease agreement with the owner of the property and registering the lease with the local Land Office. It is essential to work with experienced legal professionals throughout the process to ensure that your purchase complies with Indonesian laws and regulations. It is also important to review the lease agreement carefully so you understand its terms, including any restrictions on the use or transfer of the property.

The specific documents required to buy a leasehold property on Bali as a foreigner can vary depending on the type of property and the seller. In all cases, however, original documents are required to buy property on Bali. To obtain a certificate of ownership, you must submit completed forms, together with the relevant supporting documents, to Indonesia’s National Land Agency (BPN). JARFIS Property Group supports you with this, so the process is taken off your hands.

To buy freehold property on Bali as a foreigner, you need to set up an Indonesian entity: a PT PMA. Buying property on Bali requires original documents, but the specific documents needed can vary depending on the type of property and the seller. We recommend consulting a legal adviser to make sure all required documents have been obtained and verified before proceeding with the purchase. JARFIS Property Group supports you with this, so the process is taken off your hands.

There are some restrictions on foreign ownership of property on Bali. Foreigners cannot own land directly in their own name. They can, however, do so by setting up a company, known as a PT PMA. Most foreign investors choose to buy property on a leasehold basis instead, because a leasehold property is relatively easy to acquire and there are no costs for setting up and maintaining a company.

Lease terms for property on Bali can vary widely. The most common lease term is 25 years, often with an extension option agreed at the outset. The extension process has been simplified, and once the original term has expired, foreigners can extend their rights with the National Land Agency as soon as an agreement has been reached with the landowner.

Foreigners can own land on Bali through a limited liability company, known as a PT PMA. This company allows the investor to become the owner of both the property and the land. In practice, however, most foreign investors choose to buy on a leasehold basis to avoid the extra administration and the costs of setting up and maintaining a company.

Foreigners can own property in their own name on Bali, but not the land. You buy the property and lease the land through a leasehold purchase. Would you like to own both the property and the land? JARFIS Property Group can help you set up a company, known as a PT PMA. Keep in mind that this involves extra administration and costs for setting up and maintaining a company.

The key difference between freehold and leasehold on Bali lies in the ownership rights they grant. Freehold property is owned outright and provides long-term ownership of both the land and the building on it. As a foreigner, you can only own both the land and the property by setting up a company. With leasehold property, the land is leased from the owner for a fixed period, usually 25 to 30 years with an option to extend. Because the land is not transferred, leasehold is more affordable to buy and therefore offers a higher return. In practice, most foreign investors choose to buy on a leasehold basis to avoid the extra administration and the costs of setting up and maintaining a company.

As a property owner on Bali, you are subject to several taxes. The main ones are currently:

• Land and building tax, known as PBB, is an annual tax payable on property in Indonesia. It is important to make sure this tax has been paid, as this is required in order to sell a property.
• Transfer tax, known as PPH, is another tax payable on the sale of a property. The seller is responsible for paying this tax.
• Construction tax is another important tax that is sometimes overlooked. It is due once a building has been completed and is based on the property’s construction budget (RAB). The responsible party and the amount of tax vary depending on whether the building was constructed privately or by a contractor.
• Value added tax, known as PPN, may apply to property sold by professional developers. It was recently raised from 10% to 11%. This tax only applies to property sold by developers, not to private sales.
• Luxury tax, known as PPnBM, applies to the sale of luxury property such as apartments, townhouses and villas priced at IDR 30 billion or more (approximately USD 2 million). It is a 20% tax that only applies to primary sales.
• Notary and contracts: it is crucial to have all transactions and agreements relating to your property investment handled carefully by a qualified notary. This includes purchase contracts, lease agreements and any other legal documents. A notary can ensure that everything is legally correct and binding. In addition, there may be costs involved in setting up a company as a foreigner if you also want to own the land. It is important to work with experienced legal and financial professionals throughout the process to ensure compliance with Indonesian laws and regulations and to gain a clear view of the total costs.

The ongoing maintenance costs for a property on Bali can vary depending on the type, size and location of the property. Common costs include utilities such as gas, water and electricity. If your property is part of a managed community, each owner often pays a monthly fee for the upkeep of the shared areas. It is important to have a clear view of these costs before making a purchase.

The deposit required to buy a house on Bali is usually 10% of the purchase price. However, this can vary considerably, as different arrangements can be made with the current owner or the developer. JARFIS Property Group supports you throughout the entire process to give you a clear view of these costs.

After an introductory meeting, if you wish to proceed with actually buying property on Bali, a service agreement must be signed and a start fee paid. This assures us of your genuine interest and assures you of our commitment to making the process a success. If you complete a purchase, the start fee is refunded to you. Please see our website for the current brokerage fees we charge for our services.

We are frequently asked to provide information about the Indonesian property market and our services. To make good use of our time and to identify which prospective buyers are genuinely serious, we work with a start fee. This assures us of your genuine interest and assures you of our commitment to making the process a success.

Yes. If you complete a purchase, the full start fee is refunded to you upon the actual transfer of your property.