Investing in real estate in Bali is attracting increasing attention from foreign buyers. But along with the prospect of high returns comes the need to carefully approach the legal side of transactions.
Step 1. Verification of land rights
Any transaction begins with checking the land documents. In Bali, there are several types of rights:
Hak Milik (full ownership, only for Indonesian citizens),
Hak Guna Bangunan – an analogue of freehold, available to foreign legal entities (through registration of a PMA company).
It is necessary to make sure that the seller or developer really has the legal right to dispose of the plot.
Step 2. Lease agreement and its term
Leasehold agreements are usually concluded for 25–30 years, but the term is not limited by law and can also be extended under Hak Sewa. It is important that the conditions for extension are clearly stated in the contract.
Court practice shows: transactions for a term of more than 50 consecutive years can be challenged as an attempt to bypass the ban on direct land ownership by foreigners. The optimal solution is to conclude a contract for up to 50 years with subsequent extensions.
Step 3. Verification of the seller’s documents and family consent
If the seller is an individual, it is necessary to check marital status. In Indonesia, a spouse has rights to the property, but by law is not obliged to give permission for the transaction, and since a deal without such consent can be challenged, we recommend obtaining it.
It is also important to make sure that there are no heirs who may claim rights to the land.
Step 4. Access roads and zoning
When choosing a plot, it is worth checking:
the presence of an official access road (otherwise neighbors may block access),
compliance of the plot’s purpose with the urban planning scheme RDTR (residential, tourist, commercial).
Mistakes in these points often lead to the impossibility of building or legalizing an object.
Step 5. Permits and approvals
For construction it is necessary to obtain:
PBG (building permit),
SLF (certificate of occupancy),
environmental approvals (AMDAL).
Without these documents, the object risks being recognized as unauthorized construction.
Step 6. Consideration of local traditions
In Bali, local customs play an important role. It is forbidden to build near temples or block irrigation channels. Violation of traditions can lead to protests from the village and problems with using the plot.
Step 7. Verification of the developer company
If it is a developer, it is important to check the company’s documents: charter, licenses, tax reports. It is also worth making sure that the developer has the resources and experience to successfully implement the project. And how exactly this can be confirmed – we can explain in our individual consultation.
Step 8. Secondary market
When buying a finished property, it is necessary to check:
the legality of the original contract,
timeliness of tax payments,
existing contracts with management companies.
Final Checklist
To make a transaction in Bali safe, an investor needs to:
check the type of land rights;
make sure of the spouse’s consent and absence of inheritance claims;
verify access roads and zoning;
request all construction and occupancy permits;
take into account local traditions;
check the developer’s documents;
when buying a resale property – study the history of taxes and contracts.
At our agency Global Investment Property we ourselves go through all these steps before recommending an object to clients or adding it to our “portfolio”. Each project undergoes multi-level verification – legal, financial, and technical. Thanks to this, investors can be confident: the chosen property meets the declared standards, and all documents will be transparent and clear.
We openly show how the process is organized, share the results of checks, and are ready to explain every detail of the transaction in detail.