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Overview about foreign property ownership titles in Bali
| Titles | Hak Milik (Freehold) |
Hak Pakai | HBG (Hak Guna Bangunan) |
Hak Sewa (Leasehold) |
| Statement | Right of Ownership | Right of Use | Right to Build | Right to Lease |
| Entitlement | For Indonesian citizens only | For foreign and Indonesian individuals | For foreign and Indonesian limited liability companies (PMA / PT) | For foreign and Indonesian individuals |
| Validity | No limit in duration | Initial 25 years, extendable for 20 years & renewable for 25 years – total 70 years | Initial 30 years, extendable for 20 years & renewable for 30 years – total 80 years | Initial 25 years, extendable up to 90 years |
| Certificate status | Registered certificate at Indonesian Land Office | Registered certificate at Indonesian Land Office | Registered certificate at Indonesian Land Office | Not registered certificate – private agreement between two individuals |
| Advantage | Capital appreciation due to unlimited ownership duration | Ownership certificate written on foreigners name if resident in Indonesia | Suitable for foreign property developers and business owners | Ideal for individual ‘lifestyle’ property investments Lower investment capital compared to Hak Milik No domiciled status required |
| Limitations | Foreigners are not entitled to buy Hak Milik Nominee agreements are not legally based |
Foreigners require domiciled status (KITAS, KITAP) to maintain ownership status No commercial use of property allowed |
Tight regulations around foreign company formation (tax reporting, capital requirements) Not suitable for a single property purchase |
No capital appreciation |
For more details about ownership rights, please fill the form below:
Please note that information supplied is to be used as a guide only. We advise to seek independent legal advice prior to purchasing any property in Bali.
Contact us for a personal meeting. Bali Treasure Properties will evaluate suitable ownership rights and provide further clarification about the property acquiring process.
