5 Things You Should Know Before Buying a Property in Bali as a Foreigner

posted on : March 3, 2023

If you are interested in buying a property in Bali for the first time, this article is made for you! Bali is not only a great investment in term of financial returns, but it also offers an opportunity to experience the island’s unique lifestyle and culture. 


Bali has stunning natural beauty, rich culture, and warm hospitality. It also attracts millions of tourists annually, making it an ideal location to invest in property for long-term returns. We understand that you are considering buying a property in Bali and we are here to guide you throughout the process. These are a few essential questions that you need to know before buying your first property in Bali.


Should You Buy Leasehold or Freehold?

The main difference between leasehold and freehold is what you can do to the property. Typically, a leasehold system will allow you ownership rights during the lease period. For this time, you can occupy, refurbish or add the furniture and rent the property during the lease period.

On the other hand, freehold refers to a property owned outright by the owner and has no time limit on ownership. You own the property ideally to use, modify, and sell it as you wish. Freehold properties are often more expensive than leasehold properties as they offer greater control and ownership rights.

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Overview about Foreign Property Ownership Titles in Bali


Understand The Regulations

Generally, foreigners in Bali are allowed to own their property, but with some restrictions. You need to understand the regulations and documents about ownership rights for foreigners in Indonesia, especially in Bali. 

Ideally, the complete paperworks that has to be owned by the leasehold property are:

  • Land certificate, 
  • Lease agreement (if any), 
  • Land and Building Tax (PBB), 
  • Construction tax (if any),
  • Zoning (ITR), and
  • Building permit (PBG/SLF).
  • In other cases, if you are planning to buy a freehold property in Bali, you should have PT. PMA before buying the property.

We understand that this part may be difficult for anyone, not just for foreigners in Bali. That’s why we are here to assist you in knowing and understanding more about the local regulation while selecting your dream property.


Choose The Best Area for Your Needs

Specifying the area before buying property in Bali is critical to meet your needs. It is because the property area and location will significantly impact the investment’s success and profitability, such as property value and rental income potential.

The factors may come from the proximity to main roads, schools, shopping centers, and amenities to determine the desirability of a location for your potential buyer or tenant in the future. Furthermore, Bali has many administrative differences from other areas in Indonesia, such as Banjar.

You can choose the well-known areas in Bali, such as Canggu and Berawa if you want to invest in the fast-growth hospitality area for expatriates. On the other side, if you need the residential area but located around Canggu and Berawa, Pererenan will be the great choice.

For the next move, there are many areas in Bali that are great for investment and is less busy than Canggu and Berawa. They are Seseh, Cemagi, Nyanyi, and Cepaka. We can see a nice probability for the property investment there, especially for residential type. If you need help for an area guide in Bali, please click this.

Therefore, conducting thorough research and analysis of the real estate market in different investment decisions is essential. If you need help figuring out where to start, always remember that we’re ready to help you find the fit.


Pay Attention for The Architecture and Interior Style

Another factor that would impact the price of the property in Bali is its architecture and interior style. You need to pay attention to the furniture that you chose, from the material until the character of the design. Besides that, the architecture of the building also needs your attention because the first impression depends on the building and the exterior. Generally, we all know that the first impression is the last impression such as the layout, flow, and functionality of the interior space can play a significant role in determining the property’s value.

The value that we mean here is a well-designed property with a unique architectural style and high-end interior finishes can command premium prices in the real estate market, especially in Bali. Typically, the most wanted interior design nowadays in Bali is minimalist modern style with a semi enclosed living room. For the architecture, mostly the modern-tropical or art deco still the favorite building style. 

Therefore, before you survey the prospective properties in Bali, there are several building and interior styles that you need to know. They are Balinese, Joglo, minimalist, maximalist, contemporary, Mediterranean, European vintage, and art deco. Because of that, the reputable and valuable interior designer and architect are important to make sure your properties will run well in the future. If you need recommendations from the best interior designer and architect, just contact us for more details.


Seeking It Out with A Real Estate Agent is Highly Recommended

When you are a foreigner and want to buy a property in Bali, these two options are available: working with a real estate agent or searching independently.

Working with a real estate agent in Bali can be beneficial if you are unfamiliar with the market or have limited time to devote to the search. Besides that, agents can provide valuable insight into the local real estate market and can help you navigate the often complicated buying process.

On the other hand, if you prefer to search independently, use your online resource to find properties that meet your needs. Searching for a property independently in Bali can be a more time-consuming process, but it would be more flexible and personalized.

Ultimately, deciding to work with an agent or search independently depends on your needs and preferences. Fortunately, Bali Treasure Properties offer the most up-to-date listings in Bali’s top locations and provide personalized & transparent service to assist. Moreover, we also help you pass the complicated buying process between you and the property owner.


In conclusion, buying a property in Bali can be a smart move for investment and an exciting opportunity. However, it is crucial to approach the process with caution and to do your due diligence before making any commitments. Following these five tips ensures you make an informed and successful property purchase in Bali.


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Bali Treasure Properties
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