- Foreigners cannot hold Bali land as freehold (Hak Milik) — Article 21 of the Basic Agrarian Law prohibits it. The legal routes are leasehold (Hak Sewa), Hak Pakai with a KITAS, and a PT PMA holding HGB build rights.
- The island median villa price in 2026 is $256,000–299,000; Ubud starts around $250,000 and off-plan entry runs $119,000–139,000.
- Budget 6–7% on top of the price on the resale market and up to 16–17% from a developer with VAT; legal due diligence costs $1,000–2,500.
- Realistic net yields are 4–6% self-managed and 10–15% professionally managed; running a two-bedroom villa costs $7,500–13,000 a year.
- What changed in 2026: 18 KBLI codes closed to new foreign PT PMAs (real estate 68111 included), Perda 4/2026 against nominee ownership and farmland conversion, the tax office moved to Coretax, and six regencies are slowing new hotels and restaurants.
Fifteen questions almost every buyer asks, answered briefly, with links to the detailed guides. If this is your first pass at the topic, this page is enough to understand what is legal, what it costs and where people usually lose money.
Ownership
1. Can a foreigner buy a villa in Bali at all?
Yes — but not the land as freehold. Hak Milik is reserved for Indonesian citizens under Article 21 of Basic Agrarian Law 5/1960. Three legal routes exist: leasehold (Hak Sewa) — a long-term land lease with rights to build, rent out and transfer; Hak Pakai — a right of use for KITAS or KITAP holders; and a PT PMA holding HGB build rights. Start with how leasehold works.
2. How long does a leasehold run?
The market works with 25–30 years, because notaries do not certify a single lease for longer. What matters next is how the extension is written. In the projects we represent the horizon is stepped: 29 + 10 + 30 = 69 years with the uplift formula fixed in the contract.
3. Can I register the land to an Indonesian on a private agreement?
No. A nominee arrangement is void from the outset under Article 26(2) UUPA, and Bali's Perda 4/2026 added liability for the foreigner, the nominee and the facilitators — plus the practical risks of death, debts, divorce and resale. Full breakdown here.
The deal and the documents
4. How does a purchase work?
Choose the property → legal due diligence → reservation → notarial leasehold deed, or a PPJB for off-plan → stage payments → handover after SLF. The notary and PPAT roles are covered here.
5. Which documents must be checked?
The land certificate and chain of rights, zoning, KKPR, PBG, SLF, the seller's legal entity and the contract text. See KKPR, PBG and SLF and the full due diligence procedure.
6. Can I buy without flying in?
Yes — checks, negotiation and signing run remotely, originals travel by courier, funds by bank transfer. Step by step: buying remotely.
Money, taxes, costs
7. What does a villa cost?
The 2026 island median is $256,000–299,000. Ubud $250,000–500,000, Canggu $400,000–800,000, Seminyak up to $1.2M, off-plan in Ubud from $119,000–139,000. Detail: prices and what drives them.
8. What is paid on top of the price?
Resale adds 6–7% (notary, taxes, registration); a developer purchase with VAT adds up to 16–17%. Legal due diligence costs $1,000–2,500. Taxes in detail: here.
9. How do I transfer the money?
The 2026 routes are direct SWIFT and transit hubs, with contracts almost always denominated in dollars. See payment routes and rupiah currency risk.
Rental and yield
10. What yield is realistic?
Gross 10–18% in strong locations; net 4–6% self-managed and 10–15% professionally managed. Whole-market Airbnb occupancy for the year to August 2026: Ubud 36.6% at $113, Canggu 36.2% at $214 (AirROI, 08.08.2026). How to audit a seller's promise: the financial model checklist.
11. What does legal short-term renting require?
The permit stack: NIB, the correct KBLI, a commercial PBG and SLF. Since 31.03.2026 platforms remove unlicensed listings. Full guide: legal renting in 2026.
12. What does it cost to run?
A two-bedroom villa in Ubud runs $7,500–13,000 a year; a three-bedroom rental in Canggu $24,000–26,000. Management fees run 15–25%. See owner running costs and management companies.
Visas and living on the island
13. Does buying grant residency?
No. Status is a separate track: Second Home Visa, Golden Visa or a KITAS through a company. See visas and KITAS for owners.
14. What do I need on entry in 2026?
A passport valid six months, the electronic arrival card, the customs declaration, the Rp150,000 tourist levy per entry and a visa (visa-free, VOA or e-VOA at Rp500,000 for 30 days). Extensions require an in-person biometric visit. Detail: Bali entry rules.
15. What changed in 2026?
Four things: 18 KBLI codes closed to new foreign PT PMAs including real estate 68111; Perda 4/2026 against nominee ownership and productive-land conversion; the tax office moved to Coretax, where a transfer stalls without both parties' NIK; and six regencies agreed to slow new hotels and restaurants. See KBLI 68111, the rice field law and the moratorium.
The three recurring mistakes. First, treating a gross yield as net. Second, paying a deposit before due diligence: the check costs $1,000–2,500 and takes 2–4 weeks, while skipping it costs far more. Third, comparing properties by price instead of cost per year of ownership: two villas at $250,000 with 20 and 50 years left on the lease differ by a factor of two.
Bottom line
Bottom line: in Bali a foreigner buys a right, not land — and the quality of that right comes from the contract and the permit pack, not from the price. The realistic 2026 frame: entry from $139,000 in Ubud, 6–17% on top for taxes and registration, 4–15% net depending on management, running costs from $7,500 a year, and a separate visa track. Everything else is detail that documents can settle.
Model your own budget and yield in the calculator and the configurator — two minutes each.
This material is informational and is neither a public offer nor legal advice. Rules and market figures are stated as of the publication date and change over time.
FAQ
Can a foreigner buy a villa in Bali?
Yes, but not the land itself. Freehold (Hak Milik) is reserved for Indonesian citizens under Article 21 of the Basic Agrarian Law. Foreigners buy through leasehold (Hak Sewa), Hak Pakai with a KITAS, or a PT PMA with HGB build rights.
How long does a leasehold run and what happens after?
The market registers 25–30 years, since notaries do not certify a single lease beyond that. Extensions are then fixed in the contract. In the projects we represent the horizon is built from three steps: 29 + 10 + 30 = 69 years.
Why not register the land to an Indonesian on a private agreement?
Because such a transaction is void from the outset under Article 26(2) of the Basic Agrarian Law, and Bali's Perda 4/2026 added liability for the foreigner, the nominee and the facilitators. Then come the practical risks: the nominee's heirs, debts and divorce.
How much does a Bali villa cost in 2026?
The island median is $256,000–299,000. Ubud runs $250,000–500,000, Canggu $400,000–800,000, Seminyak up to $1.2M. Off-plan villas in Ubud start at $119,000–139,000.
What taxes does an owner pay?
On purchase: 5% BPHTB and 11–12% VAT on a new developer unit. Annually: PBB of Rp500,000–3,000,000. On rental income: 10% of gross for Indonesian tax residents and 20% withholding for non-residents, often reduced to 10% under a tax treaty.
What yield is realistic?
Gross yields of 10–18% in strong locations; net 4–6% self-managed and 10–15% professionally managed. Whole-market Airbnb occupancy for the year to August 2026: Ubud 36.6%, Canggu 36.2%.
Does buying a villa grant residency?
Not by itself. Residency is a separate process: Second Home Visa, Golden Visa or a KITAS through a PT PMA. Property can support the application but confers no automatic status.
Can I buy remotely?
Yes. Document checks, contract negotiation and notarisation can all be handled remotely, originals travel by courier and payment goes by bank transfer. Visiting for viewings and handover is advisable but not required to close.