FAQ

  • Home
  • //
  • FAQ

Frequently Asked Questions

Buying Property in Bali

Foreigners cannot directly own freehold land in Indonesia. However, they can legally acquire leasehold property or establish a company (PT PMA) to obtain rights such as Hak Pakai (Right to Use) or Hak Guna Bangunan (Right to Build).

What is the difference between leasehold and freehold?
Freehold (Hak Milik) means full ownership of land and property, and is available only to Indonesian citizens. Leasehold grants the right to use the property for a specific period, typically 25 to 30 years, with the possibility of extension.

However, foreigners can establish a foreign-owned company (PT PMA) and purchase property under Hak Guna Bangunan (HGB) — a legal structure similar to freehold. Under HGB, the company owns the property for an initial period of up to 80 years. Within that time, the company can resell the property to another company, lease it to an individual or sell it to an Indonesian citizen who can convert it back into true Freehold (Hak Milik). 

This means that whenever a property is listed as freehold, foreigners can still purchase it legally through a company structure. The notary will simply convert the title from Hak Milik to HGB at the time of transaction.

Most leaseholds are offered for 25 to 30 years, often with clearly defined guaranteed extension options of 10 to 50 additional years. Everything beyond that can be negotiated with the landowner.

Yes, as long as the contract is properly drafted and reviewed by a trusted notary. At Noba, we ensure all properties go through legal checks for your protection.

Yes, leasehold villas can be transferred or subleased to another party at any time as long as we include that clause in the contract you sign when buying a villa. At Noba Villas, we make sure that this clause is always included in the agreements you sign. The new buyer will inherit the remaining lease period.

Legal and Financial Questions

Not necessarily. If you are buying a leasehold villa for personal use or rental while hiring a management company, you do not need a company. A PT PMA (foreign owned company) is only required if you plan to own land under a freehold-like structure or operate a larger commercial business.

It depends on the type of property.

For leasehold purchases, costs are minimal:

  • Notary fees are typically around 1% of the selling price.

  • The 10% income tax (PPh Final) is legally paid by the seller, not the buyer.

  • After purchase, you’ll pay a small annual land tax (PBB), which is usually negligible.

For freehold transactions, the tax structure is different:

  • The buyer is responsible for paying 5% BPHTB (Acquisition Tax) based on the taxable sale value.

  • The seller still pays 2.5% income tax on the transaction.

At Noba, we ensure you receive a full and transparent breakdown of all costs before proceeding.

 

Foreigners rarely qualify for local mortgages. Most purchases are made in cash, although some developers offer flexible in-house payment plans.

It depends on the seller. In most cases, if you’re buying directly from a developer (especially for off-plan or newly built villas), they offer a warranty on the building structure and waterproofing. This typically lasts for around 12 months from handover.

For resale properties, warranties are usually not provided, but the condition of the villa can be assessed during due diligence. At Noba, we help ensure that any available warranties are clearly outlined in the purchase agreement.

 
 

Off-Plan Villas and Construction

An off-plan villa is a property that is sold before it’s built. Buyers often benefit from lower prices and staged payments throughout construction.

It can be, as long as the developer is reliable. Noba works only with experienced and reputable developers and can arrange escrow payment structures to minimize your risk.

Most villas take between 12 to 18 months to complete, depending on size, location, and the builder’s timeline.

Most off-plan villas in Bali follow a staged payment plan tied to the construction progress. While each developer may have slight variations, a typical structure looks like this:

  • 10% Deposit sent to a trusted notary escrow

  • 30% Down Payment upon signing the agreement

  • 15% after the foundation was built

  • 15% after the finishing the wall structure

  • 15% during finishing and roofing

  • 15% upon final handover

 

Location and Lifestyle

Bali is a large island. We focus on the most trendy areas with the highest potential. In the end, it depends on your personal preferences.

  • Canggu and Berawa: High rental demand and trendy lifestyle
  • Uluwatu: Stunning cliffside views, beaches and natural beauty with modern surfer-vibes
  • Pererenan, Seseh and Cemagi: A growing investment hotspot with charm and promising developments
  • Ubud: A peaceful, spiritual hub surrounded by beautiful nature, knows for its steady tourist appeal and evergreen investment value

Yes, many leasehold villas are used for short-term rentals. Depending on the zoning, you may need an additional commercial license to operate legally. In most cases, this license is already included when you purchase a villa. Noba will guide you through the process and connect you with trusted villa management companies if needed.

Zoning laws in Bali regulate how land can be used and are crucial to understand before buying property. The three main zones are:

  • Pink zones: Tourism or commercial zones. These are the most favorable for short-term rentals and commercial use, allowing daily rentals without any issues.

  • Yellow zones: Residential areas. Suitable for living or long-term use. Short-term rentals may are possible but require an additional permit called Pondok Wisata.

  • Green zones: Agricultural or protected land. Building is generally not permitted, and investing in these areas carries significant legal risk.

There are also other zoning types and mixed-use zones, but these tend to vary by region and would only overcomplicate things for most buyers. At Noba, we make sure each property is fully compliant with local zoning regulations, so you don’t have to worry.

Working with Noba

We guide you through the entire buying process:

  • Property sourcing and comparisons
  • Negotiations and notary arrangements
  • Legal checks and documentation
  • Marketing and photography if needed
  • Villa management and post-sale support

Yes, Noba Villas is a legally registered and certified real estate agency (AREBI -2025000014A).

No. Our services are free for buyers. We are compensated by the property owner or developer.

General Information

Yes. We arrange private viewings and also offer virtual tours for overseas clients.

All transactions are in Indonesian Rupiah by law (IDR). Any USD amounts shown are for reference only.

No, you can purchase a villa remotely. Many of our international clients buy without being physically present. All documents can be signed digitally or via power of attorney. Noba can arrange virtual tours, legal checks, and notary handling on your behalf.

Owning property in Bali does not automatically grant you residency or a visa. However, there are various long-stay visa options (such as the Second Home Visa, Investor KITAS or Retirement KITAS) that you may qualify for. We can connect you with a trusted visa agent to guide you through the process.

Yes, it’s possible to structure the ownership through a company (PT PMA) or a legal agreement between parties. It’s important to set clear terms and consult a legal professional before entering a joint investment. We can help connect you with a notary to assist with the structure.

Got more questions? Contact Us.

Bali Investment Guide

Thinking of investing in Bali villas? Here’s your ultimate guide for you.

Guide

About Us

Noba is your trusted partner in finding the perfect property in Bali. With a commitment to excellence and customer satisfaction, we offer a curated selection of beautiful homes tailored to your needs.
Whatsapp Instagram

Contact Info

Quick Links

Newsletter

Subscribe to our newsletter to stay updated.

 
Noba Villas is a certified Real Estate Agency (AREBI-2025000014A)
 
Copyright © 2025 – All rights Reserved – Noba Villas

Compare Listings

Bali Investment Guide

Fill the form below to download the Bali Investment Guide.

Get ROI Projection

Fill the form below to download the ROI projection