Bali’s property market offers unique investment opportunities, but for foreign buyers, ownership structures differ significantly from other global real estate markets. The two primary options—leasehold and freehold—each come with distinct regulations, costs, and benefits.
For foreign investors, leasehold stands out as the most accessible and strategic choice. Here’s why.
Leasehold grants investors the right to use and enjoy a property for a set period—typically 25 to 30 years, with extension options. This structure provides legal clarity and investment security while allowing buyers to benefit from Bali’s thriving rental market.
Unlike freehold, where ownership of land and property is indefinite, leasehold agreements offer flexibility, lower upfront costs, and a clear legal pathway for foreign investors. These properties are common in prime locations, including Uluwatu, Canggu, and Seminyak, where demand for luxury rentals remains high.
Indonesian property law restricts freehold ownership to Indonesian citizens. Foreign investors seeking freehold properties must establish a PT PMA (a foreign-owned company) to purchase under a commercial structure—an approach that adds legal and financial complexities.
Leasehold, on the other hand, is a straightforward and legally compliant option, allowing foreign buyers to secure property rights without complex corporate structures.
Leasehold properties require a lower upfront investment compared to freehold, making them more accessible to a wider range of investors. This allows buyers to diversify their portfolios, invest in multiple properties, or allocate more budget to interior design and amenities—enhancing rental appeal and potential returns.
Bali’s short-term rental market consistently outperforms global averages, with luxury villas in prime locations generating annual rental yields of 8-15%. Leasehold properties enable investors to capitalise on this demand while maintaining a flexible exit strategy should they choose to sell before the lease expires.
Leasehold properties offer remarkable flexibility, including:
For investors focused on short-to-medium-term profits and rental income, leasehold provides the ideal balance of affordability, legal security, and financial return.
At Akura Villas, we specialise in premium leasehold developments designed for investors seeking high returns and stress-free ownership. Our lease agreements are structured to provide:
✔ Secure, extendable terms ensuring long-term investment stability
✔ Transparent pricing with no hidden costs
✔ Strategic locations that maximise rental demand and resale value
✔ Seamless ownership processes for foreign buyers
Leasehold in Bali isn’t just an alternative—it’s the smarter, more accessible way to invest. With the right approach, it offers the best of both worlds: strong financial returns and legal security without unnecessary complexity.
If you're looking for a stress-free, transparent investment, Akura Villas ensures your journey is seamless from contract signing to property management. Our team is here to help you map your investment goals to the right strategy—and the right villa.
📩 Let’s talk: Please follow link to 👉🏽 book a consultation to explore our available properties and secure a stress-free investment in Bali. Alternatively contact us at hello@akuravillas.com
.png)
.png)
.png)