Can Foreigners Buy Property in Bali? Here’s What You Need to Know

Foreign interest in Bali’s property market continues to grow, and for good reason. With over 6.3 million international arrivals in 2024 and a 2025 target of 7 million international visitors (out of a total 17 million total visited), Bali remains one of Asia’s most visited and most lucrative destinations for lifestyle-focused property investment.

But one question remains at the top of every investor’s list:

The short answer is: it’s possible, but with the right structure. But there are essential legal and regulatory frameworks you must understand first. Here's what every serious investor should know before taking the plunge into Bali property.

Indonesia does not allow direct freehold land ownership by foreigners. However, there are legal and secure alternatives:

The most common and secure option for foreign investors is a leasehold title. This gives you the right to use a property for a fixed period — usually 25–30 years — with options to extend up to 80 years or more. Leaseholds are often used for villas, apartments, and hotel rooms.

“Leasehold ownership is incredibly popular in Bali because it provides all the benefits of ownership — capital appreciation, income, and personal use — without the legal restrictions of freehold,” says Mark Reed from Geonet. “And because the entry price is lower than freehold, it also means higher potential yields.”

This is a legal right granted to foreigners by the government, generally used for residential properties. It typically applies to landed homes and must be registered with the Indonesian National Land Office (BPN). This route is best for those living in Indonesia or holding a KITAS visa.

For larger investors or commercial properties, foreign ownership via a PT PMA (foreign investment company) may be possible. This requires formal company registration, minimum capital investment, and ongoing business operations. It’s typically used for hospitality ventures or large-scale developments.

Leasehold investments aren’t a compromise, they’re a strategy. In Bali, leasehold titles are more affordable than freehold, especially in high-demand zones near the beach, restaurants, or tourist hubs. This lower entry cost often means higher yield potential, especially when properties are placed under expert management.

Plus, you can secure a property or hotel room or suite in prime areas—like Berawa, Uluwatu, or Canggu—at a fraction of the cost of similar beachfront areas in Australia, Europe, or Singapore.

“We often get asked if leasehold is ‘real’ ownership,” says Mark Reed. “And the answer is, yes—it’s a secure, regulated form of property tenure with clearly outlined rights. Leasehold allows you to generate income, resell, and enjoy capital gains, all within a safe legal framework.”

Property buyers used to Western markets will find some major differences in how Bali operates:

• No Stamp Duty
• No Capital Gains Tax on Leasehold
• No Lenders Mortgage Insurance
• Lower legal and notarial costs

But these savings come with a trade-off: You need to do more due diligence.

Buying property overseas always involves risk — and Bali is no different. The biggest mistake you can make is assuming that everything works the same way as it does in Australia.

• Work with trusted legal advisors to verify lease titles, land certificates, and zoning regulations.
• Check developer experience, financials, and completed projects.
• Review your management agreement for clarity on fees, responsibilities, and rental terms.
• Confirm your investment purpose (personal use vs. passive income) and align the property accordingly.

At GPFG, we work exclusively with vetted developers who have a strong reputation, proven delivery, and international-standard construction quality.

“We turn down more developers than we accept,” Reed explains. “Because unless we’re 100% confident in the project and the partners behind it, we won’t offer it to our clients.”

If you’re buying a villa to live part-time or retire in Bali, your priorities may be different than someone focused on rental yield.

But if you’re buying with returns in mind, you need to evaluate:

• Tourism demand in the area
• Nightly room rates (ADR)
• Occupancy patterns across seasons
• Who is managing the property and bookings

“It’s not enough to own a beautiful villa or apartment,” Reed says. “You need the right property manager in place ideally, a professional hospitality operator. The villa market has become extremely competitive, so you want professional managers who will work for you, for consistent bookings and solve maintenance issues.”

GPFG specialises in hotel room investment, where our investors purchase the lease of a hotel unit, and enjoy above average returns in Bali’s best tourist locations, free stays, and no worries about maintenance or renovations.

Read more: Buy Hotel Room Investment

Hotel real estate, especially luxury and branded resort investments, is one of the most promising segments in Bali today. With its combination of high tourist volume, increasing average daily rates (ADR), and a growing appetite for lifestyle-led accommodation, investors are seeing consistent returns and growing demand.

The key, however, lies in choosing the right partners and properties.

“It’s not just about buying a piece of paradise. You’re investing in a business,” says Reed. “You need to know your developer, understand their track record, and be certain that your property will be managed by professionals. This isn’t the place to take shortcuts.”

Read more: Hospitality Real Estate

There are tax obligations in both Indonesia and your home country. In Indonesia, leasehold owners who generate rental income must pay 20% withholding tax on profits. If your property is managed, this is often handled on your behalf and included in the agreement.

Australia and Indonesia also have a Double Taxation Avoidance Agreement, meaning tax paid in Indonesia can be credited against what you owe at home.

If you plan to buy under an SMSF or through an equity release strategy, speak to our team’ advisors who are familiar with both Australian and Indonesian regulations.

Read more: Buying Property with SMSF

Foreigners generally cannot access Indonesian bank loans, which makes financing a purchase in Bali slightly more complex.

But many Australian investors use:

• Equity release from existing properties
• Cash reserves or redraw accounts
• SMSFs, if they meet eligibility and structuring requirements

GPFG works with Australian mortgage brokers and financial planners to help clients finance their investment safely and legally.

You can’t own the land, but you can own the right to lease and profit from it—if you’re well informed and properly advised.

The right approach, backed by expert legal, tax, and property guidance, makes investing in Bali accessible and rewarding.

Bali is not just a holiday destination—it’s a gateway to lifestyle-focused investing, and one of the most active luxury tourism markets in the Asia-Pacific region. At GPFG, we help foreign investors do it right—by working only with qualified developers, global hospitality partners, and trusted local advisors.

If you're considering property investment in Bali, get in touch today for a one-on-one consultation.