As mentioned earlier, foreigners cannot buy freehold properties directly in Bali. However, there are some approaches foreigners can use in order to make it easier to invest. One common approach is setting up a local PT PMA Company with 100% foreign ownership which then purchases property on behalf of its foreign owners. Another option involves leasing out properties from locals under long-term contracts while the locals still technically own the property, but you arrange a contract so you can use the property for rentals and pay an agreed-upon fee to the actual owner.
Investing in real estate within Bali requires careful consideration regardless of whether you choose a freehold or leasehold. Before making any decision, it’s vitally important to also understand how laws governing these investments work so that you aren’t breaking any laws, taking advantage of the native citizens, or paying less in taxes to the Indonesian government than you owe. While there are regulations and considerations for foreigners investing in Bali, once you have this part set up, you can move on to the real fun – making money from your investments. For more information on how to navigate investing in property in Bali, or managing that Bali property, you can contact an experienced professional at Bukit Vista.