Buying
How to Buy a Villa in Bali as a Foreigner, Step by Step
The order a foreign purchase in Bali runs in — structure, offer, independent notary, due diligence, rupiah funds, BPHTB, deed, registration — and where each step goes wrong.
Updated 7 October 2026 · 5 min read
The eight steps, in order
The order matters more than the steps. Nearly every purchase that goes wrong in Bali does so because money moved before a check that should have come first.
| Step | What happens | Who does it | The mistake to avoid |
|---|---|---|---|
| 1. Structure | Leasehold, Hak Pakai or PT PMA with HGB | You, with a lawyer | Choosing after the offer |
| 2. Offer | Price, term and extension agreed in rupiah | You and the seller | A price only in dollars |
| 3. Notary | Your own Notaris/PPAT appointed | You | Using the seller’s notary |
| 4. Due diligence | Title, owner, zoning, access, permits, PBB | Notary, plus your own checks | Paying a deposit first |
| 5. Conditional agreement | Deposit against conditions (PPJB for a sale) | Notary drafts | Unconditional deposits |
| 6. Funds | Money converted into rupiah, in Indonesia | You and your bank | Converting on signing day |
| 7. Taxes | BPHTB paid; seller’s tax settled | Buyer and seller | Leaving it to the last day |
| 8. Deed and registration | Lease deed, or PPAT deed registered at BPN | Notary/PPAT | Not collecting the registered copy |
Step 1: choose the structure before the villa
A foreigner cannot hold Hak Milik, Indonesia’s freehold title. The lawful routes are a leasehold — a contract to use the land for a fixed term, typically 25–30 years — Hak Pakai, a right to use tied to a residence permit and intended for living in, and Hak Guna Bangunan held through a PT PMA, the foreign-owned company route used when the property will earn rent. The PT PMA’s minimum paid-up capital is now IDR 2.5 billion per business line under BKPM Regulation 5/2025, against an investment plan above IDR 10 billion.
The choice decides what you can do with the villa. Hak Pakai does not support commercial letting; a leasehold can be let only if the deed permits it; and a leasehold’s value is in its remaining years and its extension clause.
Steps 3–5: an independent notary, then the checks, then the deposit
Engage your own notary, not one the seller or agent introduces. A PPAT’s authority covers the whole province, so any licensed Bali PPAT can act. For a lease you need a Notaris, because a lease is not one of the transfers a PPAT executes; for Hak Pakai or HGB you need a PPAT. Most offices hold both licences — ask which capacity they are acting in.
Due diligence comes before the deposit: the certificate checked at the land office against the seller’s identity, encumbrances, zoning, legal access, the building permit (PBG) for anything built, and unpaid land tax. ATR/BPN’s Bhumi portal is a useful first screen, not a substitute. Only then sign a conditional agreement whose deposit is refundable if a condition fails. For off-plan, PP 12/2021 sets the conditions before a developer may sign a binding pre-sale agreement.
Steps 6–8: rupiah, duty, deed
Transactions in Indonesia must be settled in rupiah under Bank Indonesia Regulation 17/3/PBI/2015, and the BPHTB receipt must be presented before the deed is signed, so the money has to be in Indonesia and in rupiah before completion. BPHTB is up to 5% of the transaction value, less a non-taxable threshold each regency sets (at least IDR 80 million under Law 1/2022).
At completion the notary signs the deed with both parties. A transfer of Hak Pakai or HGB is then registered at the land office (BPN) and the certificate issued in the new holder’s name; a leasehold is a notarial deed between you and the owner. Do not treat the purchase as finished until you hold the registered document, not a receipt for it.
Common questions
Can a foreigner buy a villa in Bali?
Yes, through a leasehold, Hak Pakai with a residence permit, or Hak Guna Bangunan held by a PT PMA company. A foreigner cannot hold freehold (Hak Milik) in their own name.
What is the process to buy property in Bali?
Choose the structure, agree a price in rupiah, appoint your own notary, complete due diligence before any deposit, sign a conditional agreement, convert the funds to rupiah, pay BPHTB, then sign the deed and register it.
How long does it take to buy a villa in Bali?
Due diligence on a clean title normally takes two to four weeks; inherited, subdivided or mortgaged land takes longer, and a PT PMA must be set up before it can buy. A seller who will not wait for the checks is telling you something.
Do I need a lawyer as well as a notary in Bali?
Usually it is worth it. The notary verifies title and executes the deed but does not advise you on whether the deal is good; an independent lawyer reads the lease terms, the extension clause and the structure on your behalf.
How much deposit do I pay when buying in Bali?
There is no fixed figure; it is negotiated. What matters is that it is paid after due diligence, under a written conditional agreement, and is refundable if a condition such as clean title or a valid permit fails.
What are the costs of buying a villa in Bali?
Up to 5% BPHTB acquisition duty less the regency threshold, the notary’s deed fee (capped at 1% of the transaction value), due-diligence and legal fees on top, and, for a PT PMA, the cost of setting up and running the company.
General information, not legal advice. Drawn from PP 18/2021, PP 24/2016, PP 12/2021, Law 1/2022, BKPM Regulation 5/2025, Bank Indonesia Regulation 17/3/PBI/2015 and Bali Perda 4/2026 as described in the linked guides; verify with a licensed Indonesian notary (PPAT) and an independent lawyer before committing funds.