Legal Structures for Foreigners Buying Villas in Bali
Learn how foreigners can legally buy villas in Bali through Hak Pakai or HGB via PT PMA. Fresh Leaf Consulting ensures clarity, compliance, and safe investment for international buyers
Fresh Leaf Consulting Team, Fresh Leaf Consulting provides international buyers and investors with transparent guidance on Bali property, legal ownership structures, and villa investment strategies.
8/20/20252 min read
Buying a villa in Bali is a dream for many international investors and homeowners. But Indonesian property law is very different from many other countries, and misunderstanding the rules can lead to financial loss or even loss of the property itself. The key to a safe investment is knowing exactly which ownership structures are legally available to foreigners.
Ownership Limitations
Indonesian law reserves Hak Milik (Freehold) exclusively for Indonesian citizens. Foreign individuals cannot directly hold freehold land titles. Instead, the government allows secure alternatives such as Hak Pakai (Right of Use) or Hak Guna Bangunan (HGB) through a PT PMA (foreign-owned company) (ATR/BPN – National Land Agency).
Legal Paths for Foreign Buyers
Hak Pakai (Right of Use)
Suitable for those who want a villa for personal residential use. Hak Pakai titles can last up to 70 years (25 + 20 + 25) as long as the foreigner holds a valid residency permit (KITAS or KITAP).
Hak Guna Bangunan (HGB) via PT PMA
The most common structure for investors. By setting up a PT PMA, foreigners can obtain HGB rights, initially valid for 30 years and extendable up to 80 years. This allows the owner to build, operate, rent, and even mortgage the property.
Nominee Agreements – Avoid These
Some foreigners are tempted to use an Indonesian “nominee” to hold a Hak Milik on their behalf. This practice is legally weak, risky, and often ends in disputes. It is not a safe or government-recognized solution.
Essential Due Diligence
Before committing to any purchase:
Verify the land certificate with ATR/BPN to confirm legal status.
Engage a qualified Notary (Notaris/PPAT) to prepare and check contracts.
Confirm zoning regulations allow for residential or tourism use.
Ensure all tax obligations are settled to avoid future liabilities.
The Process Step by Step
Clarify whether your goal is personal use or investment.
Select the appropriate structure—Hak Pakai or PT PMA with HGB.
If using HGB, establish the PT PMA through Indonesia’s official OSS system.
Have the notary verify ownership, zoning, and tax records.
Complete registration at ATR/BPN and receive the issued land title.
Why Work With Fresh Leaf Consulting
Navigating Bali’s real estate market as a foreigner requires expertise, trusted contacts, and legal clarity. Fresh Leaf Consulting ensures:
Clear explanation of ownership options.
A safe process supported by licensed notaries and vetted agents.
Transparent guidance designed to protect your investment from legal or financial risks.
Take the Next Step
Buying a villa in Bali is possible—and safe—when done legally. Don’t leave your dream to chance. Contact Fresh Leaf Consulting today and let us guide you through the process of securing your villa in Bali with clarity, compliance, and confidence.