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What Foreign Buyers Often Misunderstand About Bali Property Laws (and What You Should Know)

What Foreign Buyers Often Misunderstand About Bali Property Laws (and What You Should Know)

July 29, 2025

Let’s be honest, Bali property law has a bit of a reputation. Ask around and you’ll hear everything from “You can’t legally own anything” to “Just put it in a local’s name and hope for the best.”

It’s no wonder foreign buyers are cautious and rightly so. But the truth is, owning property in Bali is absolutely possible and secure — if you understand the legal framework and work with the right professionals.

So let’s clear the air. These are the most common misunderstandings we hear from first-time buyers — and what you actually need to know before making a move.

Misunderstanding #1: “Foreigners can’t own property in Bali.”

The truth:
Foreigners can’t own freehold land in Indonesia — but that’s not the full story.

Through a leasehold agreement (usually 25–30 years with built-in extension rights), you can lease land, build a villa, and enjoy full legal rights over the property and its income.

Want even more control? Set up a PT PMA — a foreign-owned company which allows you to:

  • Lease land in your company’s name

  • Build and own the villa outright

  • Operate rentals and legally repatriate profits

It’s legal, scalable, and exactly how seasoned investors operate.

Misunderstanding #2: “It’s safer to put the property in a local’s name.”

The truth:
This is one of the most dangerous myths out there. Known as a "nominee structure", this method involves using an Indonesian citizen to hold your land title. While it may seem like a shortcut, it’s legally risky and often unenforceable if things go wrong.

If that nominee has a change of heart, you're left with very few protections.The safer, cleaner path? Use a leasehold + PT PMA model, backed by written contracts, legal due diligence, and full transparency.

Misunderstanding #3: “The process is too complicated to do from overseas.”

The truth:
It’s complex — but not impossible. And definitely not something you need to navigate alone.

At Akura Villas, we help clients set up everything remotely:

  • PT PMA registration

  • Lease agreements

  • Pondok Wisata (rental) licensing

  • Legal due diligence and tax structuring

All with full transparency, updates, and bilingual legal guidance.
Yes, you can own and manage a villa in Bali — without ever stepping off the plane.

Misunderstanding #4: “The lease just ends and you lose everything.”

The truth:
Most leases are structured for 25–30 years — with a guaranteed option to extend.

At Akura, our lease contracts include:

  • Built-in extension clauses

  • Fair market rate evaluations (averaged across three independent appraisals)

  • Clear terms for resale, transfer, and subletting

You’re not buying into uncertainty — you’re securing long-term control with a legal framework that’s proven and enforceable.

Misunderstanding #5: “I’ll get stuck in a legal loophole and lose my money.”

The truth:
This fear usually comes from dealing with unlicensed developers, vague contracts, or DIY agreements. With proper structure, the process is safe and fully transparent.

Here’s what every foreign investor should confirm:

  • The land title is clean and verified (no encumbrances or disputes)

  • Zoning supports tourism activity

  • Your lease includes renewal and subletting rights

  • You (or your PT PMA) are the legal lessee

This is exactly what we handle behind the scenes — so you don’t end up learning the hard way.

A Final Word on Risk: It’s Not the Law, It’s the Process

The laws aren’t the problem — it’s how people navigate them. The most common legal missteps happen when buyers cut corners, rush contracts, or work with the wrong developer.

At Akura Villas, we approach this differently:

  • We handle all legal structuring and due diligence in-house

  • Contracts are clear, bilingual, and enforceable

  • Every villa is fully compliant with tourism and ownership regulations

  • Our legal partners guide you from contract to key handover

Confidence Comes from Clarity

Investing in a Bali villa shouldn’t feel like a leap of faith. With the right structure, the right team, and the right legal support, it’s a smart, secure, and scalable opportunity — one that thousands of foreign investors are already taking advantage of.

So don’t let outdated myths hold you back. Ask the right questions. Read the fine print. And work with people who actually know what they’re doing.

Thinking About Investing in Bali? Let’s Talk.

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