Buying Property Abroad: Our Complete Checklist for Investors

Buying property abroad can be one of the most exciting—and rewarding—investment decisions you’ll ever make. Whether you’re looking to generate rental income, enjoy personal holiday use, or diversify your portfolio internationally, overseas property offers immense potential. But with opportunity comes complexity. Understanding the risks, legalities, and local practices is essential to protecting your investment and achieving your goals.

With over 12 years of experience in Bali’s property market, Geonet Properties has guided hundreds of Australian, Asian, and European investors through the process of buying property abroad. Our team has put together a list of everything you need to consider when buying a property overseas.

Not all countries allow foreign freehold ownership. In places like Indonesia, for example, foreign buyers must use long-term leasehold structures (typically 25–30 years, with renewal options). These are fully legal and common, but it’s crucial to work with local legal experts.

"Leasehold in Bali is straightforward once explained properly," says Mark Reed from Geonet. "Many of our clients start out unsure, but quickly see how it works to their advantage, with lower purchase prices leading to higher returns over the long run."

Before you sign anything, consult with a local property lawyer to:

• Confirm land titles and zoning
• Review lease agreements
• Ensure compliance with foreign ownership laws

Geonet has local, experienced lawyers who specialise in property laws and administration, and every investor with us has 1-on-1 sessions for contract review.

Buying property overseas means navigating dual tax systems. For example, Australians who earn rental income from Bali must pay tax in both Indonesia and Australia. Fortunately, the Double Tax Agreement between the two countries prevents being taxed twice.

No matter where you are buying from, make sure you understand:

• Local property taxes and income tax rates
• Withholding taxes on income transfers
• How your tax treaty applies
• If your property manager handles tax payments on your behalf

Geonet has accounting and tax advisors to connect clients with professionals who specialise in cross-border investment.

Currency exchange rates can significantly impact your budget. A shift of just a few cents in the AUD/IDR exchange rate could add thousands to your final cost.

"Currency fluctuations are out of our control, but we do watch the markets and expect swings around political and economic events. We always recommend our investors monitor the AUD’s strength when planning their purchase," says Reed. "Even a 3% swing can make a big difference from when you purchase to when you settle."

Foreign financing is often limited. In Bali, for instance, local banks typically don’t lend to foreigners. Having different ways to pay is one of the benefits we provide for clients, and many Australian clients tap into home equity or use SMSF structures to invest. For them, earning regular cash flow through overseas investment in Bali is part of a wealth building process.

We have a team of finance partners who guide clients through equity release or cash-out refinance as well as using superannuation (SMSFs).

Read more: SMSF Property: How to Maximise Your Retirement Savings with SMSF Property Investments

Who looks after your property when you’re not there? This is one of the most important parts of the buying process, and often overlooked. Having the wrong property manager can not only lead to your property not being cared for, or unoccupied, but could end up costing you operational losses instead of earning returns.

You need a trusted operator who understands high-yield, short-term rental management, handles maintenance and repairs, and provides regular reporting.

"This is why we specialise in hotel investment, because our operators are some of the world’s best brands who cater to millions of travellers annually," explains Reed. "They expertly manage everything from occupancy to property upkeep. For our clients, it’s a hassle-free investment."

Buying property abroad involves more than just the purchase price. Always budget for:

• Legal and notary fees
• Lease registration or permits
• Property management fees (typically 20–40% of gross revenue)
• Renovation or fit-out expenses
• Insurance, VAT, and future exit costs

Ask for a complete cost breakdown before you buy.

Just because a destination is popular doesn’t mean every property will perform. Study:

• Tourist arrivals and peak seasons
• Average Daily Rate (ADR) and occupancy rates
• Competitor set and price positioning

In Bali, areas like Seminyak, Berawa, and Canggu offer consistently strong performance due to limited beachfront supply and high demand.

Unlike your home country, where standard policies might cover the basics, overseas properties—especially in tropical or high-risk zones—require specialised coverage. A robust insurance plan doesn’t just protect the physical structure; it safeguards your income stream and shields you from liability.

When evaluating insurers, prioritise providers experienced in international real estate who offer:

1. Property and Contents Insurance
   • Covers structural damage from fires, storms, or accidents.
   • Includes furnishings and appliances (critical for rental properties).
2. Rental Liability Coverage
   • Protects you if a guest is injured on your property.
   • Essential for short-term rentals, where turnover is high.
3. Natural Disaster Protection
   • Specifically addresses floods, earthquakes, or cyclones—common in tropical regions.
   • Verify whether "acts of God" are excluded (a dangerous loophole in some policies).

Can you sell your investment easily when the time comes?

Find out:

• Is there a healthy resale market for foreign-owned properties?
• Are leaseholds easily transferrable?
• Are there any capital gains taxes or transfer restrictions?

Understanding the local business culture can help in:

• Negotiating purchase terms
• Working with developers and lawyers
• Managing guest expectations and communication

Geonet’s team comprises Indonesian and international experts, and works closely with local legal and cultural experts to ensure seamless execution.

Look into surrounding infrastructure—airport access, roads, healthcare, and upcoming development. Areas with strong tourism growth and new facilities tend to outperform.

For example, Bali’s upcoming airport expansion and government-backed tourism push in areas like Sanur and Uluwatu signal long-term growth.

Define your goals: Will you use the property yourself, or is it strictly for income?

At Geonet, we mainly focus on property, particularly hotel and resort investments, where our clients enjoy income from occupancy as well as a number of free stays throughout the year. While it’s a small number, we also have clients who buy units to live in, so they have all the perks of hotel amenities, in their own holiday home.

Read more: Why Investors are Turning to Resort Investment

Buying property abroad doesn’t need to be intimidating. With the right partners, clear legal advice, and a strong management team, you can unlock high-yield returns and lifestyle benefits.

At Geonet Properties, we guide our clients every step of the way—from due diligence and financing to construction updates and rental income. If you’re ready to explore resort investment opportunities in Bali and beyond, get in touch with our team today.

"Buying overseas isn’t just about the dream—it’s about doing it right," Reed concludes. "We’re here to make sure you do."

Need Help Buying Property Abroad? Contact Geonet today for a free consultation and access to premium resort property opportunities across Southeast Asia.

Read more: Overseas Property Investment: Our Top FAQs Answered!