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In Bali, property titles are categorized into freehold and leasehold. Freehold ownership is exclusively available to Indonesian citizens, even 100% domestically owned companies can’t acquire freehold titles. However, for foreign investors, leasehold options offer a cost-effective pathway to property investment, potentially leading to higher returns on investment due to the lower initial costs.

No, you don’t need to be a resident to purchase property in Indonesia. However, you will need to set up a so-called “foreign-owned company” (a “PT PMA”) dedicated to this purpose. Your company will allow you to operate in Indonesia and access to property ownership through leaseholds. Establishing a PT PMA also makes you eligible for a KITAS, a renewable stay permit, allowing you to reside and manage your investments directly in Indonesia.

Freehold ownership grants you the full rights to the property and land forever, offering complete autonomy. In contrast, leasehold provides you the privilege to occupy and use the property for a predetermined term, without owning the land itself. For a deeper dive into these concepts, please kindly consult our ebook.

In Bali, obtaining credit as a foreigner is not possible. As for securing financing in your own country, that depends on several factors and isn’t something we can manage. Some clients have however successfully secured loans in their home countries by offering a mortgage as collateral.

It depends on your priorities, budget, and timeline. Constructing a new villa allows for customization and potentially lower initial costs, which can lead to a higher rental yield, but it requires 10 to 14 months for construction. Purchasing an existing villa offers convenience and immediacy, with the advantage of seeing exactly what you're getting, but it may bear higher upfront costs and offer less personalization, potentially resulting in a lower rental yield.

Unless you want to build a Hollywood star villa – which, of course, is possible! –, you can expect the construction period to last between 9 and 15 months.

After establishing your company (PT PMA) in Bali, you become eligible to apply for a residence permit. Indonesia also offers various other residence permits catering to different needs, such as the Retirement Visa for pensioners seeking to enjoy their retirement in Bali's most serene environments, and the Digital Nomad Visa, designed for remote workers who wish to live and work in Indonesia's vibrant locales.

As a real estate investor, it’s crucial to note that rental yields in Bali can indeed be attractive, but they vary widely depending on location, villa quality, property management, and marketing strategies. In recent years, Bali has seen average rental yields between 15% to 20% for well-managed properties in prime locations. Importantly, building your own villa offers potential for higher returns due to lower initial costs.

There is an old saying in real estate, which states that the most important thing is location, location, location. If this is true all over the world, it's because the location of a property influences the lifestyle you can enjoy while living there. But in Bali, it's even truer: proximity to certain attractions (be it the beach, restaurants, tourist spots, view on the rice paddies, etc.) will determine the number of people wanting to rent it during their stay in Bali. Following location, design ranks as the second most crucial factor. A modern, luxurious, yet simple design is highly sought after, enhancing the appeal and comfort of the villa.

In Bali, the most promising areas for real estate investment tend to align with regions that attract tourists, expatriates, and locals looking for quality living spaces. Here are some of the top areas: Seminyak, Canggu, Ubud, Uluwatu, Jimbaran, Nusa Dua, Sanur. Each area has its unique charm and target market, so the best investment depends on your goals, whether they're capital appreciation, rental yields, or personal use. Due diligence, including understanding local property laws and investment climate, is crucial before making any decisions.

Yes, of course. Bali is very well-organized in terms of property management, catering especially to investors who don't reside locally. These companies offer comprehensive services that go beyond just maintaining your property; they actively manage it by finding and managing tenants, ensuring your investment remains profitable even in your absence. They handle everything from regular maintenance and repairs to guest services and marketing your property to potential renters. This setup not only ensures that your villa remains in pristine condition but also maximizes your rental yields by keeping the property occupied with minimal effort on your part.

The cost of a property manager typically ranges from 15% to 20% of the monthly revenues generated by the villa.

We advise securing local construction insurance for your property during the building phase. This insurance safeguards against damage to building materials and provides liability coverage for injuries at the construction site. With a premium of only 0.2% of the total construction cost, it's an effective way to protect your investment and reduce financial risk from unexpected incidents.

We provide a one-year warranty on our homes for any construction defects, excluding natural wear, force majeure, adverse weather, and natural disasters. For comprehensive home insurance, including protection against theft, fire, and natural events like earthquakes and floods, we recommend Zurich Insurance.

Yes, the tax on your rental revenue is 10%. This local tax applies to the income you generate from renting out your property, ensuring compliance with local tax regulations.

Yes, we work closely with the best brokers on the island and will provide assistance if you decide to resell your property. Our network of experienced professionals ensures you receive top-notch guidance throughout the sales process, maximizing your property's visibility.

In Indonesia, the capital gains tax applied to the profit from reselling real estate is set at 10% of the declared sale amount.

Yes, you can repatriate the income earned from renting out your villa back to your home country. However, it’s essential to comply with the local regulations in Indonesia regarding taxation, as well as the laws and requirements for incoming funds in your home country.

After purchasing your property, you'll encounter several operating costs, including: the annual property tax, property insurance (should you choose to secure it), monthly staff salaries, and various utilities and maintenance expenses, such as water, electricity, internet, and cleaning supplies. These recurring costs are essential for the upkeep and management of your property, ensuring it remains in excellent condition for your use or for rental purposes.

Design trends lean towards sustainable, open living spaces that blend indoor and outdoor areas, using eco-friendly materials like bamboo and natural stone. There's also a focus on minimalist luxury, combining clean lines and high-quality finishes with smart home technology for comfort and efficiency, all while incorporating traditional Balinese elements.

Bali’s real estate market benefits from year-round tourism, with high seasons but no real low seasons, ensuring consistent demand for rentals. High seasons peak from June to August and December to February, providing particularly strong rental yield opportunities during these periods.