Why Investors Choose Bali
Bali is more than a tropical paradise; it has become one of the most profitable real estate markets in Asia. With international tourism bouncing back and digital nomads settling across the island, villas in Canggu, Uluwatu, and Berawa are delivering strong rental returns. If you are planning to buy property in Bali, understanding the process step by step will help you make safe and smart decisions.
At 8 Degree Real Estate, we guide our clients through every stage—ensuring the property is legally clear, the structure is correct for foreigners, and the transaction is secure.
Step-by-Step Guide: How to Buy Property in Bali
1. Agree on Price and Conditions
After selecting your villa or land, the first step is negotiation. Both buyer and seller agree on the price and conditions (payment terms, inclusions, handover timeline).
2. Draft & Sign MoU (or PPJB for Freehold)
A Memorandum of Understanding (MoU) or Pre-Sale Agreement (PPJB) is drafted by the notary. This document reserves the property for you and confirms the deal.
3. Deposit Payment
A 10% deposit is paid into escrow or directly to the notary’s client account. This shows commitment and secures the property.
4. Notary Due Diligence
The notary checks all legal documents:
- Land certificate and zoning (residential/tourism use)
- Building permits (IMB or SLF)
- Tax history and ownership status
- Road access and utility rights
This step ensures the property is safe to buy.
5. Final Payment and Taxes
Once due diligence is cleared, the buyer completes the final payment and covers taxes. The notary then finalizes the paperwork.
6. Sign the Agreement, Title Transfer & Handover
- Leasehold: Buyer signs a Lease Agreement with the owner in front of the notary.
- Freehold: Buyer signs the Sale and Purchase Agreement (AJB) in front of the notary.
For freehold, the title deed (SHM/Hak Milik) is officially transferred into your name (or PT PMA structure if foreign-owned). For leasehold, the lease contract is registered and valid for the full agreed term.
At handover, you receive the keys, inventory list, and legal documents making you the official property holder.
Buying from Abroad (Remote Purchase)
Many investors cannot always be in Bali for the transaction. In this case, you can issue a Power of Attorney (PoA), allowing a trusted representative or agent to sign on your behalf. This is a common process for foreign buyers and ensures the purchase is smooth even from overseas.
FAQ: Quick Answers for Investors
Can foreigners buy property in Bali?
Yes, foreigners can legally own property through leasehold, Hak Pakai (Right of Use), or a PT PMA (foreign-owned company). Freehold (Hak Milik) is limited to Indonesian citizens, but there are safe structures for foreign investment.
How long is a leasehold in Bali?
Typically 25–30 years, with extension options up to 80 years depending on the agreement.
Final Thoughts
Buying property in Bali can be simple when you follow the right process and work with a trusted agency. With strong ROI potential and increasing demand in 2025, this is the right time to invest in Bali villas.
At 8 Degree Real Estate, we help you every step of the way—from finding the right property to finalizing the title transfer—so you can invest with peace of mind.
