Bali, Indonesia, is renowned as a favored tourist destination, attracting millions of local and international visitors annually for various purposes, including business and leisure.
With its breathtaking natural landscapes and vibrant cultural heritage, Bali has captivated the interest of many foreigners seeking long-term residence in the region. Apart from renting properties on a yearly basis, foreigners now have the opportunity to purchase houses in Bali.
This new prospect emerged following the introduction of Ministerial Regulation Number 18 of 2021 by the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency. The regulation outlines the procedures for granting management rights and land rights, allowing foreigners to buy two types of housing: landed houses and flats.
Foreigners can purchase luxury landed houses, limited to a maximum area of 2,000 square meters, with a restriction of one plot of land per individual or family. Additionally, foreigners can acquire commercial flats, categorised as such by the regulation.
The requirements for foreigners to own a house or residence are relatively straightforward, involving the provision of essential documents such as a visa, passport, or residence permit.
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Foreigners have the flexibility to choose between new and old residential houses or units. Moreover, specific minimum price requirements for residential properties purchased by foreigners have been set forth in the Decree of the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency, known as Number 1241/SK-HK.02/IX/2022.
For landed houses in Bali, the minimum price eligible for foreign ownership (hak pakai) is set at Rp5 billion. As for flats, foreigners intending to purchase units must be prepared to pay a minimum of Rp2 billion.
Furthermore, in addition to purchasing properties, foreigners interested in owning properties in Bali can explore options such as leasehold agreements and second home visas, offering alternative avenues for acquiring and residing in residential properties in the region.
If you are considering investing in Indonesian real estate, it is advisable to seek assistance from professionals well-versed in this matter. One such expert is Terje Nilsen, the founder of Seven Stones Indonesia. Mr. Nilsen possesses extensive knowledge and can provide valuable guidance. You can reach him at [email protected].