Ownership Titles

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

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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.