Bali is still growing and at a fast pace, given its popularity as one of the best leisure destinations in the world. One can buy land, finished villas, hotels, commercial buildings etc in Bali..

To buy a freehold property, including land, villas, accommodation or commercial estate, a foreigner will be required to set up a local company which in turn will purchase the property. This local entity will appoint the foreigner as a Director/owner. There are some set up costs and operating costs applicable for this local entity, but the tax benefits available via this route easily outweigh these expenses..

This is one of the most popular routes of ownership for foreigners - Leasehold ownership. With leases typically lasting 25-30 years (and renewable up to a total term of 80 years), approximately 80% of property sales in Bali are leasehold.

Taking a loan for buying property is not available to foreigners at the moment. Usually, the property purchases in Bali are fully paid in 1 go, although there are sometimes options available to break payments in a couple of instalments, depending on the negotiations between the buyer and the seller.

Property investment does not provide a pathway to Indonesian citizenship.

Like any other place in the world, investment in property in Bali depends hugely on the location and the use of the property. Bali being the second most popular leisure destination in the world attracts a huge number of tourists all around. Hence, short-term rental is a very common strategy for owners to earn income from the investment properties. Typical return on investment varies from 10-15% annually, much higher than many other Popular property investment destinations.

Given the status of a very popular tourist destination Bali Has a lot of options ranging from USD 150,000. Our recommendation for investment purposes however, is to look at properties in good locations which are typically priced anywhere from 240,000 to 250,000 onwards for better returns.

Leasehold property owners have very limited benefits offered by the government besides a good return on investment that all Bali properties enjoy. On the other hand, for freehold property owners, the government offers an ‘Investor Visa’ option allowing the buyers a 2-year stay with unlimited entries into Bali. Also, a freehold property sale attracts 10% tax on the gain from investment (paid by seller) which is much more favourable than 20% tax applied to leasehold property sales