Foreigners cannot own freehold land in Indonesia. How Hak Sewa leasehold, Hak Pakai right of use and a PT PMA company differ, and what to check before paying.
A foreigner cannot buy land on Bali outright. Freehold (Hak Milik) is reserved for Indonesian citizens by the Basic Agrarian Law of 1960. What a foreign buyer can lawfully hold is a long lease (Hak Sewa), a registered right of use (Hak Pakai), or a title held by a foreign-owned company (PT PMA). Each route has different cost, security and use rules. This guide explains them for EU residents; the facts below come from law-firm and consultancy summaries and were checked in October 2026, so confirm the figures with an Indonesian notary before you pay anything.
Why freehold (Hak Milik) is not available
Hak Milik is the strongest land title in Indonesia and the law reserves it for citizens. A foreigner who ends up with land in an Indonesian friend's or employee's name has no title at all: such arrangements are void under Indonesian law, and in 2026 Bali reportedly added criminal sanctions for them (Perda 4/2026, reported as up to five years in prison and a fine of IDR 1 billion, with notaries and advisers also exposed). We do not arrange or recommend them. The lawful options are the three below. For prices and yields see our guide to buying property in Bali.
Hak Sewa: leasehold
A lease is a contract between the landowner and you, signed before a notary. It needs no residence permit and, as summarised by agents, no minimum price. Typical terms are reported at 25 to 30 years, with an extension clause that you negotiate. It is a contractual right and is generally described as not registered at the land office (BPN) as a title of its own, so everything depends on the contract and on the landowner.
Check before signing: - That the landowner really holds the certificate (for example a Hak Milik certificate) and that BPN records match, including spousal and family consent. - Who owns the building, what happens at the end of the term, and whether you can renew, sell or sublease the lease. - Zoning and permits: the land must allow a villa (see our guide to where to buy in Bali), and the building needs a permit (PBG). - The value falls as the remaining term shortens, so the price per remaining year matters more than the headline price.
Hak Pakai: right of use
Government Regulation 18/2021 and the ATR/BPN rules allow a foreign individual to hold a Hak Pakai over a house or apartment in his or her own name, registered at BPN. The conditions as summarised by law firms and agents: - A valid residence permit (KITAS or KITAP). A tourist visa or visa on arrival is not enough. - A residence used as a home, not a business. Agents generally say that short-term rental of a Hak Pakai house is not permitted and needs a different structure; verify this for your case. - Land up to 2,000 square metres and one property per person or family. - A minimum price set by region (Ministerial Decision ATR/BPN 1241/2022). For Bali, sources we found disagree: apartments from about IDR 2 billion, houses from roughly IDR 2 to 5 billion. We could not confirm the exact current figure on a ministry page, so ask the notary (PPAT) for the decision in force. - Terms: on state land, 30 years plus 20 plus 30 (up to 80 years); on privately held land under agreement with the owner, reported as 30 years with one renewal of 30. Apartments can be held as strata title on Hak Pakai or HGB land.
PT PMA: a foreign-owned company
A PT PMA is an Indonesian limited company with foreign shareholders. It can hold HGB (Hak Guna Bangunan, 30 plus 20 plus 30 years) and run a licensed rental business. Under BKPM Regulation 5/2025 the summaries we found report paid-up capital of IDR 2.5 billion per business line (previously IDR 10 billion) and an investment above IDR 10 billion per business line and location, excluding land and buildings in some sectors. Setup is reported at USD 1,600 to 4,000 and yearly compliance at USD 2,000 to 4,000. A PT PMA means accounts, tax returns, an NIB licence and annual reporting, so it suits an actual business, not a single holiday home.
Be careful with timing: in May 2026 Bali reportedly closed new foreign registrations in lower-risk categories, including small hotels and real-estate leasing (see Bali closes new foreign investment permits and buying a hotel in Bali). Which activity code is open to you must be checked before you form the company.
Residence permit routes
Hak Pakai needs a KITAS or KITAP. Routes include the Second Home Visa (five to ten years, reported proof of funds of about IDR 2 billion, no work; the online application was reported unavailable, so ask an embassy) and an investor KITAS linked to PT PMA shares. Rules change often; confirm with the Immigration Directorate.
For Russian-speaking buyers living in the EU
- Residence in the EU does not change Indonesian visa rules; your passport does. We found no Indonesian rule banning citizens of Russia or Belarus from buying, but this is "not found", not a guarantee.
- Russian citizens are reported to be eligible for a 30-day visa on arrival or e-VOA, extendable once by 30 days. That is for tourism, not for a purchase.
- Prepare the passport with a certified translation, proof of address, proof and source of funds, and an Indonesian tax number (NPWP). Notaries and banks run identity and anti-money-laundering checks; transparent documentation avoids delays.
- Pay from a bank account in your own name in the EU, in euros or dollars, with the purpose stated. See sending money abroad for a property purchase and our guide for Russian-speaking EU residents. Cards and accounts of Russian banks are generally not usable for this.
FAQ
Can a foreigner buy a villa in Bali? Not with freehold title. A foreigner can lease land, hold a Hak Pakai (with a residence permit and above a price floor) or use a PT PMA company.
Is a Hak Sewa lease registered? It is described as a notarised contract rather than a registered title, so the quality of the contract and of the landowner's title is critical.
What is the minimum price for Hak Pakai in Bali? Sources differ, roughly IDR 2 to 5 billion depending on house or apartment. Ask a notary for the current decision.
Can I rent out a Hak Pakai house to tourists? Agents say no, residential use only. A licensed rental usually needs another structure; take legal advice.
Do I need a company? Not for a lease or Hak Pakai. A PT PMA fits those running a business.
Is a nominee arrangement safe? No. It is void and reportedly criminalised in Bali since 2026.
How we help
We are a trilingual platform (English, Russian, Polish) that finds properties and coordinates independent local lawyers, notaries and tax advisers. Browse the Indonesian listings and use the calculators to compare costs. This text is general information, not legal, tax or investment advice; rules change, so verify the current regulations with an Indonesian notary before you decide.