Leasehold vs Freehold in Bali: What Foreigners Can Own

Leasehold or freehold in Bali? For a foreigner the answer is leasehold, or an HGB title held through your own company. Freehold ownership (Hak Milik) is not available to foreigners: it is a constitutional restriction, and any offer of direct foreign freehold is a red flag for fraud. Here is how the options compare and how to choose.

Leasehold vs Freehold vs HGB at a Glance

How Leasehold Works in Bali

A leasehold gives you the property for a fixed number of years, and the term is priced in: the land prices in my guide to buying land in Bali assume 25–30 year leases. Extensions are common but not automatic. One villa in my catalog comes with a 29-year leasehold plus a priority extension of another 30 years at the market land price, so the cost of the extension is not fixed today. Put the extension terms in the contract.

Compare leases by price per year. A $375,000 villa in Nyanyi on a 29-year lease costs about $12,900 per year of use; a $253,000 villa in Uluwatu on a 90-year lease costs about $2,800 per year.

When an HGB Title Through a PT PMA Makes Sense

A PT PMA is a bigger commitment, but it is how developers and larger investors hold land, and it is the main path to financing: banks lending to foreigners mostly lend to PT PMA companies, on HGB titles, and PT PMAs can get a 10–20% lower down payment. Details are in mortgage in Bali for foreigners.

Which Should You Choose?

• Buying one villa or apartment for yourself or for rental: leasehold, with a long term and written extension terms
• Investing $700,000+, developing, or planning to use a mortgage: HGB through a PT PMA
• Anyone offering you freehold as a foreigner: walk away

Whichever structure you choose, zoning and permits decide whether the asset keeps its value. If you want a second opinion on a contract, book a free consultation.